2011-2012 Federal Government Direct Loan Program

Spertus students may qualify for student loans through the Federal Government Direct Loan Program (officially, the William D. Ford Federal Direct Loan program). This program allows students to borrow for graduate school through the U.S. Government—specifically through the U.S. Department of Education—with Spertus acting as a certifier and monitor of student eligibility. To qualify a student must submit a Free Application for Federal Student Aid (FAFSA) form that is used to determine eligibility. The Government may charge fees for loan origination, insurance, or guarantees. With Direct Lending, repayment of the loan is paid directly to the U.S. Department of Education. This is a change for those students who have had loans previously, as students no longer choose a lender for their Federal Student Loan. Direct Loans still have the same interest rate, annual and aggregate loan limits, and six-month grace period. The difference is in the servicing of the loans.

There are two Direct Loan programs, Stafford Loans and GRAD PLUS Loans.

If you wish to receive a Federal Stafford or GRAD PLUS Loan for 2011-2012, you are required to authorize a Master Promissory Note (MPN) and complete an online Loan Counseling Session (also called an Entrance Counseling Session). You must do this even if you have previously completed these items in an earlier year, because now you will have a new lender and new guarantor (the U.S. Department of Education).

You can complete the MPN and online Loan Counseling at www.studentloans.gov.

Stafford Loans

• The student is the borrower.
• A completed, valid FAFSA is required. The school code for Spertus is 001663.
• Stafford Loans can be Subsidized or Unsubsidized or a combination, depending on eligibility.
• The current interest rate for Subsidized Stafford Direct Loans is 6.8%. No interest accrues on this loan (or part of loan) as long as the student attends classes and maintains satisfactory progress. Repayment does not begin until six months after the student completes the program coursework and no interest accrues during this six-month grace period.
• The current interest rate for Unsubsidized Stafford Direct Loans is fixed at 6.8%. Interest on this loan (or part of loan) accrues from the day the loan is received. The student is responsible for this interest. Family income has no bearing on eligibility.

GRAD PLUS Loans

• The student is the borrower.
• A credit check is required.
• The interest rate is fixed at 7.9%.
• The maximum eligible loan amount is determined by Spertus according to the following formula:
• Estimated cost of attendance less estimated financial aid from all other sources.
• Direct GRADPLUS borrower services include help with completion of the MPN and appeals of denied credit decision or Credit Appeal Overrides.
• The COD School Relations Center manages the credit decision appeal process.
• All credit decision appeal documentation should be mailed to:

U.S. Department of Education
Attn: Credit Appeals Team
P.O. Box 9002
Niagra Falls, NY 14302

Overnight Address
COD Applicant Services
2429 Military Road, Suite 200
Niagara Falls, NY 14304

Browser compatibility on the StudentLoans.gov website can be found at: https://studentloans.gov

For more information on applying to the MSNM program, or to RSVP for an Information Session, fill out this Online Inquiry Form, email MSNM Office of Admissions at MSNM-Admissions@spertus.edu, or call 312.322.1707.

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