Direct Loans for Students - Lees-McRae College

The Direct Loan Program offers the following types of loans for students

Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. The interest rate for new loans first disbursed after July 1, 2011 is 3.4% fixed.
Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The interest rate for new loans first disbursed after July 1, 2011 is 6.8% fixed.

Loan limits

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student.

Entrance counseling

You must complete entrance counseling before we can originate your loan and make the first disbursement of your loan. This helps you to understand your responsibilities regarding your loan. Complete your entrance counseling at https://StudentLoans.gov.

The Master Promissory Note

To borrow from the Direct Loan program, you must complete a Master Promissory Note (MPN). The MPN must be completed online at https://StudentLoans.gov. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

To complete an MPN online, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from http://pin.ed.gov . In most cases, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive. You can borrow additional Direct Loans on a single MPN for up to 10 years.

You'll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.

How the loans are disbursed (paid out)

Generally, your loan will cover a full academic year and we will make at least two disbursements to you, for example, at the beginning of each semester or quarter, or at the beginning and midpoint of your academic year.

Lees-McRae College will disburse your loan money by crediting it to your student account to pay (tuition and fees, room and board, and other authorized charges). If the loan disbursement amount exceeds your school charges, we will pay you the remaining balance of the disbursement directly by check or other means. We will notify you in writing each time we disburse part of your loan money and will provide information about how to cancel all or part of your disbursement if you find you no longer need the money. You will also receive a notice from DL confirming the disbursement. You should read and keep all correspondence received concerning your loan.

Using the loan for education expenses

You may use the loan money you receive only to pay for your education expenses at Lees-McRae College. Education expenses include school charges such as tuition, room and board, fees and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation and rental or purchase of a personal computer.

Next Steps

Complete, sign, and return 1 copy of your Financial Aid Award Letter by the respond date.
Complete required Entrance Counseling on-line at https://StudentLoans.gov.
Complete your E-MPN at https://Studentloans.gov, using your DOE issued PIN.
The Lees-McRae College Direct Loan ID number is G02939.