Federal Loans

Federal Student Aid

Federal Student Aid (FSA), also known as Title IV funding, is provided by the U.S. Department of Education. Federal aid helps students to pay for higher education expenses. Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid can also help pay for a computer and for dependent care. Please note: Students may not exceed loan limits regulated by the U.S. Department of Education.

Important Reminder: Federal Student Aid is awarded under the assumption that a student will complete course(s) for the entire semester and/or payment period for which the funds were awarded. If a recipient of Title IV funds stops attending Southeastern Louisiana University after beginning attendance, officially and/or unofficially, in a course, regardless of the reason, the student may no longer be eligible for the full amount of Title IV funds originally awarded.

For detailed information regarding this policy, please visit the Return of Title IV Funds (R2T4) Policy page. Southeastern's tuition refund policy determines how much tuition and fees are refunded when a student withdraws from all classes. The university's Resignation/Withdrawal Policy and Student Fee Refund Policy can be found in the University Catalogue.

 

Federal Direct Stafford Loans

Including both Subsidized and Unsubsidized loans, these are education loans in the student's name and are applied for through the Free Application for Federal Student Aid (FAFSA).

 

Federal Direct Subsidized Stafford Loan

The Federal Direct Subsidized Stafford Loan is awarded on the basis of a student's financial need and other specific eligibility requirements. The federal government does not charge interest on these loans while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment. Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment.

Eligibility Checklist

  • Undergraduate
  • Attend school half-time or greater

Disbursement Information

If you receive the first disbursement of the loan before October 1, 2019, you will be required to pay an origination fee of 1.062% of the loan. If you receive the first disbursement of the loan on or after October 1, 2019, you will be required to pay an origination fee of 1.059% of the loan. If you receive the first disbursement of the loan before October 1, 2019 and a subsequent disbursement after that date, the 1.062% origination fee will still apply. This fee is deducted proportionately from each disbursement of your loan.

Delivery of the first disbursement of Direct Loanfunds is dependent on timely completion of your financial aid file. You must submit all needed documents early enough to allow adequate processing time.

Interest Rate Information

You may choose to pay the interest during the grace period or have it capitalized. If you choose to have the interest capitalized, it will be added to the principal amount of your loan and additional interest will be based on the higher amount. This will increase the amount that you must repay. If you choose to pay the interest as it accumulates, you will repay less overall.

Each year, the terms, interest rates, and fees assessed for Direct Loans may change. If you have previously borrowed loans, please contact the lender or servicer of each loan you have borrowed to determine the terms and conditions of the loan(s). For more information on current rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates.

Federal Direct Unsubsidized Stafford Loan

The Federal Direct Unsubsidized Stafford Loan is not based on a student's financial need, but students must also meet specific eligibility requirements. Interest is charged throughout the life of the loan. You will be charged interest from the time the loan is disbursed until it is repaid in full, including in-school, six-month grace, and deferment periods. Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment.

Eligibility Checklist

  • Undergraduate or Graduate
  • Attend school half-time or greater

Disbursement Information

If you receive the first disbursement of the loan before October 1, 2019, you will be required to pay an origination fee of 1.062% of the loan. If you receive the first disbursement of the loan on or after October 1, 2019, you will be required to pay an origination fee of 1.059% of the loan. If you receive the first disbursement of the loan before October 1, 2019 and a subsequent disbursement after that date, the 1.062% origination fee will still apply. This fee is deducted proportionately from each disbursement of your loan.

Delivery of the first disbursement of Direct Loan funds is dependent on timely completion of your financial aid file. You must submit all needed documents early enough to allow adequate processing time.

Interest Rate Information

You may choose to pay the interest during the grace period or have it capitalized. If you choose to have the interest capitalized, it will be added to the principal amount of your loan and additional interest will be based on the higher amount. This will increase the amount that you must repay. If you choose to pay the interest as it accumulates, you will repay less overall.

Each year, the terms, interest rates, and fees assessed for Direct Loans may change. If you have previously borrowed loans, please contact the lender or servicer of each loan you have borrowed to determine the terms and conditions of the loan(s). For more information on current rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates.

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Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan for an undergraduate student is not based on financial need and is limited to a parent borrower for a dependent student. The parent applying for the PLUS loan must be listed on the student's FAFSA. Parents are required to pass a credit check and meet eligibility requirements. To apply for a Parent PLUS Loan, the parent must login with his/her Social Security Number and FAFSA pin.

If a parent is not approved for the Parent PLUS Loan, the student may then request to receive additional loan funds in the form of Direct Unsubsidized Loans. To request either a Parent PLUS Loan or the additional Unsubsidized funds.

Please note: After a Direct Parent Plus Loan is applied for, a student will need to fill out an Update Request Form and submitted to the Office of Financial Aid.

Eligibility Checklist

To be eligible, the student must:

  • Be admitted into a degree-seeking program
  • Be registered at least half-time (6 credits)
  • For the 2019-20 academic year: file a 2019-20 FAFSA
  • Be considered a dependent undergraduate student (as defined by the FAFSA application)
  • Not be in default on any federal student loans, or in overpayment of any type of federal aid
  • Maintain Satisfactory Academic Progress

To apply for the Parent PLUS Loan

  • Fill out the PLUS Loan Application at studentloans.gov.
  • First-time borrowers or those requiring an endorser must complete a Master Promissory Note (MPN) at studentloans.gov.

Options if the Parent PLUS Loan Credit Check is Denied

  • The borrower can apply for the loan with an endorser (credit-worthy co-signer). The U.S. Department of Education will send you instructions on how to apply with an endorser.
  • Appeal to the U.S. Department of Education if there are extenuating circumstances. The U.S. Department of Education will send you instructions on how to appeal the credit denial.
  • The student can apply for additional Federal Direct Unsubsidized Loan funds by completing and Update Request Form and submitting it to the Office of Financial Aid.

Borrowers with an adverse credit history, including those who are initially denied and then approved on appeal or with an endorser:

  • Must complete a “PLUS Counseling” session before funds can be disbursed to the tuition account.
  • PLUS Counseling is valid for 180 days

Repayment of Parent PLUS Loans

  • Interest begins to accrue after the first disbursement of the loan
  • Repayment begins 60 days after the final loan disbursement, unless the parent requests a deferment while the student is enrolled at least half-time, and for an additional six months afterwards
  • The Department of Education is the lender, but payment will be made to a servicer appointed by the Department.
  • Loan history and servicer contact information is found at nslds.ed.gov.
  • Information on repayment plans, consolidation, deferment, etc. is found at studentaid.ed.gov.

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Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan for a graduate student is not based on financial need and is limited to a graduate/professional student. Students are required to pass a credit check and meet eligibility requirements. Students apply for this loan through the FAFSA.

Please note: After a Direct Graduate Plus Loan is applied for, a student will need to fill out an Update Request Form and submitted to the Office of Financial Aid.

Eligibility Checklist

To be eligible, the graduate student must:

  • Be admitted into a graduate degree-seeking program
  • Be registered at least half-time (5 credits)
  • For the 2019-20 academic year: File a 2019-20 FAFSA
  • Not be in default on any federal student loans
  • Not be in overpayment of any type of federal aid
  • Maintain Satisfactory Academic Progress
  • Pass a credit check run by the Department of Education

Fees and Interest Rate Information

  • The interest rate for loans first disbursed between July 1, 2019 and June 30, 2020 is 7.08%.
  • Loan fees are deducted proportionately from each loan disbursement, so the amount you receive is less than the amount you are awarded. The fee amount for Graduate PLUS Loans first disbursed on or after October 1, 2019 is 4.248%.
For additional information regarding loan fees and interest rates, please go to studentaid.ed.gov.

To apply for the Graduate PLUS Loan

  • Fill out the PLUS Loan Application at studentloans.gov.
  • First-time borrowers or those requiring an endorser must complete a Master Promissory Note (MPN) at studentloans.gov.
  • First-time borrowers must complete a Graduate Entrance Counseling session at studentloans.gov.

Options if the Graduate PLUS Loan Credit Check is Denied

  • The borrower can apply for the loan with an endorser (credit-worthy co-signer). The U.S. Department of Education will send you instructions on how to apply with an endorser.
  • Appeal to the U.S. Department of Education if there are extenuating circumstances. The U.S. Department of Education will send you instructions on how to appeal the credit denial.

Borrowers with an adverse credit history, including those who are initially denied and then approved on appeal or with an endorser:

  • Must complete a “PLUS Counseling” session before funds can be disbursed to the tuition account. This is separate from the Entrance Counseling requirement for all first-time Direct Subsidized/Unsubsidized and/or Graduate PLUS Loan borrowers.
  • PLUS Counseling is valid for 180 days

Repayment of Graduate PLUS Loans

  • Interest begins to accrue after the first disbursement of the loan
  • Repayment begins 6 months after you drop below half-time enrollment
  • The Department of Education is the lender, but payment will be made to a servicer appointed by the Department.
  • Loan history and servicer contact information is found at nslds.ed.gov.
  • Information on repayment plans, consolidation, deferment, etc. is found at studentaid.ed.gov.

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