Step 2 - Federal Student Loans

Federal Direct Stafford Loans

Please Note: Students borrowing a Federal Direct Stafford Loan for the first time at Carroll College are required to complete a Federal Direct Stafford Loan Master Promissory Note (MPN) and Direct Loan Entrance CounselingAdditionally, once a year borrowers must complete an on-line Annual Student Loan Acknowledgment.  

The Interest Rate for Federal Direct Stafford Subsidized and Unsubsidized Loans for academic year 2021-2022 is 3.73%.  The Origination Fee is 1.057% for Federal Direct Subsidized and Unsubsidized Stafford Loans where the first disbursement is made on or after October 1, 2021.

If you are taking out a private education student loan, you MUST also complete debt management counseling located on Step 3.

Federal Direct Stafford Entrance Counseling and Master Promissory Note

If you have accepted a Federal Direct Stafford Loan at Carroll College for the first time, you must complete the online Federal Direct Stafford Entrance Counseling and Master Promissory Note using the link listed below:

  • Complete Entrance Counseling and Master Promissory Note. LOG IN using your FSA ID and select Complete Counseling. Select the Entrance Counseling Required option and carefully read and follow all instructions.  After completion of the entrance counseling section, you must continue on the website and complete the Direct Stafford Loan Master Promissory Note.  Additionally, once a year borrowers must complete an on-line annual Student Loan Acknowledgment.
  • Subsidized Stafford Loans are awarded based on need to students who file a FAFSA.
  • A student must be enrolled at least half-time to be eligible.
  • No payments are required while you are in college.
  • Repayment begins six months after you leave college, graduate or drop below half-time.
  • Interest is paid by the federal government:
    • while student is enrolled in college at least half-time.  The interest subsidy ends as of the last day of attendance for the loan borrower.
    • during an approved deferment period.
  • The interest rate is fixed at 3.73%.
  • When a student has received subsidized loans for 150% of the published length of the academic program in which he or she is enrolled, he or she may not receive additional subsidized loans for enrollment in that program. This rule applies to any new* borrowers on or after July 1, 2013.
  • *A new borrower is one who has never borrowed a Federal loan or has an outstanding balance of $0 on a Federal loan.
  • Students who file a FAFSA and are enrolled at least half-time may be eligible for Unsubsidized Stafford Loans.
  • No payments are required while you are in college. Making interest payment while you are in college is recommended and can save you a considerable amount of money.
  • Repayment begins 6 months after you leave college, graduate or drop below half-time.
  • Interest that is not paid while you are in college will be added to the principle of the loan (capitalized) when the loan goes into repayment.
  • The interest is fixed at 3.73%.

Continue to Step 3

Additional Information

NSLDS
Title IV HEA Federal student and/or parent loans are submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Graphic of Loan Default RatesMedian Borrowing
Students at Carroll College typically borrow $22,089 in Federal Direct loans over 4 years.  The federal loan payment over 10 years for this amount is approximately $211 per month.  Your borrowing may be different.

Loan Limits
Annual loan limits are based on grade level and the number of credits completed.  If a student progresses to the next grade level during the academic year, they may contact the Financial Aid Office and request the additional funding available.

Loan Repayment
The Loan Repayment page contains sample loan repayment charts and additional resources to prepare students for successful loan repayment.

Questions?

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