WVNCC | West Virginia Northern Community College

NEW STUDENT BORROWER INFORMATION

Effective July 1, 2013

As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accure on the student's outstanding subsidized loan.

2013-2014 Federal Direct Loan Information

* EFFECTIVE MARCH 1, 2013: Student Loan Changes in effect due to Sequestration

For Direct Subsidized and Direct Unsubsidized Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 1 percent of the principal amount of a loan will increase. The Department of Education presently anticipates that the rate will increase to approximately 1.05 percent. With such an increase, for example, the fee on a loan for $5,500 would increase from $55.00 to $57.75, an increase of $2.75. The Department of Education will provide the actual increased percentage when it becomes available.

Student Loan Repayment

AFTER GRADUATION - Students who have multiple loans through multiple loan servicers, such as American Education Services (AES) or Great Lakes Higher Education, and the Direct Loan Program will have to make separate payments when you enter repayment unless you consolidate your loans. You can consolidate all your Stafford Loans together with Federal Direct Consolidation Loans. For more information on consolidation go to www.StudentLoans.gov To monitor all your Student Loans (from any institution or program), access your loan history with the National Student Loan Database System at www.nslds.ed.gov.

*Graduates must also complete Exit Counseling online at www.studentloans.gov. The Federal Direct Loan Exit Brochure is available by clicking here for additional information about loan repayment.