What are Federal Direct Loans?
A loan is a money that you borrow and agree to pay back with interest. A Federal Direct Loan is a student loan provided by the federal government. At ACI Medical & Dental School, our students can apply for the following types of Federal Direct Loans:
- Federal Direct Subsidized Stafford Loan. This is a low interest fixed rate loan for students attending school at least half time. The current interest rate is 4.45 percent. It MUST be paid back. Interest does not accrue while students are attending school, during their grace period, and during periods of deferments. Funds are limited to 150% of the length of the program they are currently enrolled in. Once the amount is exceeded an unsubsidized loan may be borrowed and will accrue interest.
- Federal Direct Unsubsidized Stafford Loan. This is a low interest fixed rate loan for independent students enrolled at least half-time. The current interest rate is 4.45 percent. It MUST be paid back. Interest will accrue on this loan while students are in school, during their grace period, and during periods of deferment; the interest rate can be paid while the student is in school.
- Federal Direct PLUS Loan. This is a low interest fixed rate loan for parents who want to borrow to help for their child’s education. The current interest rate is 7.00 percent. This loan is available only to parents without adverse credit histories. It MUST be paid back.
How Do I Apply for a Federal Direct Loan?
To apply for a Federal Direct Loan, students must complete the following steps:
Step 1: Creating an FSA ID
- Go to the FAFSA website
- Enter your e-mail address
- Create a username and password
- Confirm that you are 13 years of age or older
- Enter all required information:
a. Social Security Number
b. Date of Birth
d. Mailing Address
e. Phone Number
f. Alternate Phone Number
- Choose your language preference
- Set up 5 challenge questions
- Read and accept the terms and conditions
- Verify your Email address
Step 2: Applying for the Free Application for Federal Student Aid (FAFSA)
In order to determine eligibility for federal direct loans, prospective students must apply for the Free Application for Federal Student Aid (FAFSA).
- Go to the FAFSA website
- Choose “Start a New FAFSA”
- When prompted to enter school, enter G42291 or search for Advantage Career Institute.
- Call (732) 440-4110 to schedule an appointment with us. We will not be able to determine an award unless you visit.
Step 3: Completing Loan Entrance Counseling
Loan Entrance Counseling is a one-time required process that must be completed before receiving a student loan disbursement. To complete the Federal Direct Loan Entrance Counseling process, visit studentaid.gov. You must have an FSA ID in order to gain access to the loan entrance counseling process.
Direct Loan Entrance Counseling will walk the student through the Direct Loan Borrowing process and provide detailed information regarding Direct Lending, managing student educational expenses and the rights and responsibilities of a student loan borrower.
Step 4: Signing A Federal Direct Loan Master Promissory Note
A Federal Direct Loan Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. Signing it is an important part of the student loan process. Students may either print out and mail their promissory note or sign it online using their FSA ID. To sign and/or complete a Federal Direct Loan Master Promissory Note, visit https://studentaid.gov/mpn/.
Upon completion of above procedures and submission of all documents that may be required by our Admissions Office, students will be notified their Financial Aid Awards in 2 to 3 weeks.
Contact ACI Medical & Dental School today for more information regarding your financial aid options.