Eastern Oklahoma State College participates in the William D. Ford Federal Direct Loan Program. Direct Loans are 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.

Benefits of the Direct Loan Program

Direct Loans are:

• Simple - You borrow directly from the federal government.
• Flexible - You can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.

What kinds of Direct Loans are available?

Direct Subsidized and Unsubsidized Loans— Your eligibility for Direct Subsidized and Unsubsidized Loans is based on the information reported on the Free Application for Federal Student Aid (FAFSASM). No interest is charged on subsidized loans while you are in school at least half-time, during your grace period, and during deferment periods. Interest is charged on unsubsidized loans during all periods.

Direct PLUS Loans—Direct PLUS Loans are low-interest loans available to parents of dependent students and to graduate and professional degree students. Interest is charged during all periods.

• Direct Loan Application Instructions

You must be enrolled at least half-time and you must meet general eligibility requirements for the Federal Student Aid programs. You can find more information about these requirements on the Direct Loan website at www.direct.ed.gov, or by contacting Eastern's Office of Financial Aid.

You begin by completing a Free Application for Federal Student Aid (FAFSA), which can be obtained from Eastern's Office of Financial Aid, high school counselors, libraries or by phone at 1-800-4-FED-AID (1-800-433-3243). The fastest and easiest option is to apply online at www.fafsa.gov. You will need your family's tax information to complete the application.

Eastern's financial aid code is:

003155

The Master Promissory Note (MPN) is a legally binding agreement to repay your loan to the Department of Education. You may complete a Direct Loan MPN electronically via the StudentLoans.gov website. You also have the option of completing a paper Direct Loan MPN.

To complete a Direct Loan MPN electronically, you must have a Federal Student Aid PIN. The Federal Student Aid PIN is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA). To apply for a PIN, if you do not already have one, or for customer service regarding a previously assigned PIN, visit www.PIN.ed.gov.

If you have not previously received a Direct Loan program loan, you must complete Direct Loan Entrance Counseling before you can receive a Direct Loan. You may complete Direct Loan Entrance Counseling electronically via the StudentLoans.gov website at https://studentloans.gov. A Federal Student Aid PIN is also required to complete online Direct Loan Entrance Counseling.

Direct Loans have a fixed interest rate that differs depending on the loan type and other factors. Check with our Office of Financial Aid or the Federal Student Aid website for details and current interest rate information.

The maximum amount you can borrow each school year depends on your grade level and other factors. There are also limits on the total amount of your loan debt.

Yes. In addition to interest, you pay a loan fee that is a percentage of the principal amount of the loan. The Department of Education deducts the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

When you receive your first Direct Loan, you will be contacted by the servicer for that loan. Your loan servicer will provide regular updates on the status of your Direct Loan and of any additional Direct Loans that you receive.

Direct Subsidized and Unsubsidized Loans have a 6-month grace period that starts the day after you graduate, leave school, or drop below half-time enrollment. You don’t have to begin making payments until your grace period ends. Note that repayment on a Direct PLUS Loan begins 60 days after the last installment of the loan for that school year is made; however, there is the option to defer repayment of a Direct PLUS Loan. See "Repaying Your Loans" on Student Aid on the Web.

Generally, you’ll have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Your monthly payment amount will be based on how much you borrowed and how long you take to repay. For more information about repayment plans, visit "Repaying Your Loans" on Student Aid on the Web.

The Direct Loan Form for Active Confirmation After Loan Award is required for processing your Direct Student Loans. The form is due 10 days after receipt from the Financial Aid Office.

It is a federal requirement for each student loan recipient to complete exit counseling when withdrawing, graduating or not re-enrolling for classes. Visit www.studentaid.ed.gov to complete the exit counseling.

If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. If you consolidate, you will have just a single monthly payment. Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan. To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit the Federal Student Aid website for the Direct Student Consolidation Loan Application or call 800.557.7392.

You have the right to cancel all or part of your federal loan disbursement for each semester. Submit a written request to the Financial Aid Office within 14 days from the date you receive official notification that loan funds have credited to your college account, or before the first day of classes, whichever occurs last. Official notification will be sent to you no earlier than 10 days before the start of each term. For Parent PLUS Loans, official notification occurs with the posting of the loan to your student's college account.

Your written request to cancel a Direct Stafford (Subsidized and/or Unsubsidized) loan may be submitted by e-mail from your Eastern e-mail account to prector@eosc.edu or as a handwritten, typed, or printed statement bearing an original signature and date submitted by mail, in person, or by fax. To cancel a parent PLUS loan, the parent borrower may submit a handwritten, typed, or printed statement bearing an original signature by mail, in person, or by fax (no e-mail can be accepted).

Cancellation Request Received within the 14-day Period or Before the First Day of Classes, Whichever Occurs Last:

No interest will be charged and loan fees will be returned to the loan holder. The Financial Aid Office must receive the cancellation request in writing from the borrower (you for student loans; parent borrower for parent loans).

Please Note:

Cancelling your loan disbursement could cause a balance to be due on your college account which you will be responsible for paying. This is more likely to be true if excess funds (credit balance) have already been distributed via a check or a direct deposit to a bank account or your EOSC ID.

Cancelling Future Loan Disbursements:

You (the borrower) must submit in writing your request to cancel future loan disbursements by contacting the Financial Aid Office prior to 10 days before the start of classes for the next term(s). Once the loan has been disbursed for the next term(s), then you must follow the procedures described above.

For additional information about Direct Loans, visit StudentLoans.gov or contact Eastern's Office of Financial Aid.

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s (ED’s) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. As stated above, Eastern will submit information for any student who enters into agreement for a Direct Loan to NSLDS and that information will then be available to authorized persons. Enrollment information is also submitted to NSLDS on a regular basis. Please use the link to NSLDS to review your own information at any time.

Eastern Oklahoma State College does not recommend, promote, or endorse any lenders and does not have any preferred lender lists. The federal government is the sole lender for the Federal Direct Student Loans: Federal Direct Subsidized Stafford, Federal Direct Unsubsidized Stafford, and Federal Direct Parent loans.

Students should only consider obtaining private education loans after maxing out all eligibility for federal aid: Federal Pell Grant, Federal SEOG Grant, Federal Work-study, and Federal Direct Student Loans.

Federal student loans often have more favorable terms than private loans. Private education loans are a last resort to meet education costs and should only be considered after exhausting all other aid options (federal, state, and institutional). Students should contact the Financial Aid Office prior to considering private education loans. For more information about private education loans, visit the Smart Student Guide to Financial Aid website.