Federal Direct Student Loans

Eligibility for a Direct Federal Subsidized or Unsubsidized loan is based upon ‘need’ as determined by the information submitted on the FAFSA. Undergraduate borrower limits for Federal Direct Loans are as follows:

Dependent Students

• $3,500.00 Subsidized + $2,000.00 Unsubsidized for Dependent Cosmetology Students
• $2,333.00 Subsidized + $1,333.00 Unsubsidized for Dependent Aesthetics Students

Independent Students*

• $3,500.00 Subsidized + $6,000.00 Unsubsidized for Independent Cosmetology
• $2,333.00 Subsidized + $3,999.00 Unsubsidized for Dependent Aesthetics Students
• Please note, in the event that dependent student’s Parent PLUS loan is unable to be accepted, this student is still able to borrow the subsidized amount. In addition, the student will be eligible to borrow the initial unsubsidized amounts of an independent student. (See below)

Dependent Students with Plus Loan denied

• $3,500.00 Subsidized + $6,000.00 Unsubsidized for Dependent Cosmetology Students
• $2,333.00 Subsidized + $2,666.00 Unsubsidized for Dependent Aesthetics Students

The cumulative aggregate Federal Direct Loan debt an undergraduate dependent student may incur is $31,000.00 - no more than $23,000.00 may be from the Direct Subsidized Loan program. The cumulative aggregate Federal Direct Loan debt an independent student may incur is $57,500.00 - no more than $23,000.00 from the Direct Subsidized Loan program.

Loan Entrance Counseling and Master Promissory Note

Students must complete Loan Entrance Counseling and a Master Promissory Note (MPN) prior to borrowing. The Loan Entrance Counseling provides required information about a borrower’s rights and responsibilities. The financial aid office will contact the student to complete these requirements.

Subsidized Federal Direct Loans are 'interest free' while the student is enrolled at least half-time (6 credits). Students are required to begin repayment six months after leaving school or withdrawing from the program. The interest rate for loans disbursed from July 1, 2018 and before July 1, 2019 is 5.05% fixed. The loan fee for loans disbursed on or after October 1, 2017 and before October 1, 2018 is 1.066%. The loan fee for loans disbursed on or after October 1, 2018 and before October 1, 2019 is 1.062%.New borrowers as of July 1, 2013 may not receive Direct Subsidized Loans for more than 150 percent of the published length of their program (measured in academic years).

Unsubsidized Federal Direct Loans are available to students who do not qualify for a Subsidized Stafford loan or are eligible for loan funds in addition to their subsidized eligibility. Students are responsible for the interest on the loan while enrolled in school. Students may choose to have the interest capitalized. The interest rate for loans disbursed from July 1, 2018 and before July 1, 2019 is 5.05% fixed. The loan fee for loans disbursed on or after October 1, 2017 and before October 1, 2018 is 1.066%. The loan fee for loans disbursed on or after October 1, 2018 and before October 1, 2019 is 1.062%.