Loan Processing

Bard College participates in the Federal Direct Loan Program.

First time direct loan borrowers may begin the loan process by going to the following website:  http://www.direct.ed.gov/student.html  Please read the information and follow the appropriate directions.  You will need to complete a Master Promissory Note (MPN) and Entrance Counseling for the loan online at www.studentloans.gov.  Once our office receives notification that you have completed these requirements, we will be able to certify the loan for this academic year.

If you decide not to use the Federal Direct Loan this year, please notify this office by sending us an e-mail at finaid@bard.edu.

Exit counseling is required for all student loan borrowers once they are no longer enrolled at Bard. You may complete exit counseling online at www.nslds.ed.gov. This site also contains the central database for all federal loan and grant history. Logon to nslds to check your loan balance for all federal loans you may have used at ANY institution.

Frequently Asked Questions

What is a Direct Loan (DL)?

The William D. Ford Federal Direct Loan Program (DL) offers low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.

What kinds of Direct Loans are available?

• Direct Subsidized Loans available for students with demonstrated financial need, as determined by federal regulations. No interest is charged while the student is enrolled at least half-time, during grace periods and during deferment periods.
• Direct Unsubsidized Loans available for students regardless of financial need; interest is charged during all periods.
• Direct PLUS Loans low-interest loans available to parents of dependent students. Interest is charged during all periods. PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
• Direct Graduate PLUS Loans low-interest loans available to graduate/professional students. Interest is charged during all periods. Grad PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).

What are the interest rates and fees for Direct Loans?

For loan disbursements made after July 1, 2010 for the 2010–2011 academic year:

• Direct Subsidized Loan - interest rate 4.5%, origination fee 1.0% minus 0.5% upfront Rebate; net origination fee: 0.5%
• Direct Unsubsidized Loan interest rate 6.8%, origination fee 1.0% minus 0.5% upfront Rebate; net origination fee: 0.5% 
• Direct PLUS Loan interest rate 7.9%, origination fee 4.0% minus 1.5% upfront Rebate; net origination fee: 2.5% 
• Direct Grad PLUS Loan interest rate 7.9%, origination fee 4.0% minus 1.5% upfront Rebate; net origination fee: 2.5%

For loan disbursements made after July 1, 2011 for the 2011–2012 academic year:

• Direct Subsidized Loan - interest rate 3.4%, origination fee 1.0% minus 0.5% upfront Rebate; net origination fee: 0.5%
• Direct Unsubsidized Loan interest rate 6.8%, origination fee 1.0% minus 0.5% upfront Rebate; net origination fee: 0.5% 
• Direct PLUS Loan interest rate 7.9%, origination fee 4.0% minus 1.5% upfront Rebate; net origination fee: 2.5% 
• Direct Grad PLUS Loan interest rate 7.9%, origination fee 4.0% minus 1.5% upfront Rebate; net origination fee: 2.5%

How do you complete the Federal Direct Loan Master Promissory Note (MPN)?

The Master Promissory Note (MPN) explains the terms and conditions of your loan. By signing an MPN you promise to repay all loans and any accrued interest and fees to the U.S. Department of Education. You can borrow additional loan funds under a single MPN for up to 10 years.

Before receiving your first Direct Loan, you must sign an MPN. Complete your MPN online at www.studentloans.gov. You will need your Federal PIN # to process the MPN.

How do you complete the Federal Direct Loan Entrance Counseling?

Entrance Counseling will explain your rights and responsibilities as a borrower. All first time borrowers must complete Entrance Loan Counseling prior to disbursement of loan funds. To complete online go to www.studentloans.gov. You will need your PIN to complete your Entrance Counseling.

Where can I find more information about the Direct Loan Program?

The United States Department of Education’s website has a lot of information about the Federal Direct Loan program including loan limits, interest rates, repayment calculators, deferment, and DL consolidation. Visit their website at www.direct.ed.gov and go the DL page for Students.