How to Apply for a Federal Direct Loan
There are two types of Direct Loans: subsidized and unsubsidized. You may be eligible for one or both types, as shown on your aid offer. First-year students may borrow up to $3,500, sophomores up to $4,500, juniors and seniors up to $5,500, and graduate students up to $20,500 annually. To accept your loan eligibility, please login to your OnTrack account and click Financial Aid and follow the instructions on the screen. If you wish to borrow less than the amount you were offered, you may revise the amount through your OnTrack account. Federal regulations require the loan proceeds be disbursed in two equal amounts. These amounts will be disbursed no more than 10 days before the beginning of the enrollment period for the student. The Department of Education will withhold 1.057 percent in fees from the previously listed amounts.
Additional unsubsidized amounts up to $4,000 (first-year/sophomores) and $5,000 (juniors/seniors) may be applied for upon your parents denial of a PLUS loan.
Elon participates in the Direct Loan program administered by the Department of Education. First-time borrowers are required to complete a Master Promissory Note with the Department of Education at studentaid.gov.
If you are a first time Direct Loan borrower you also will need to complete your Direct Loan Entrance Counseling at studentaid.gov. This is a federal requirement to receive a Direct Loan, and your loan cannot be processed until it is complete.
Learn more about Elon’s Code of Conduct.
Steps in Applying
If you wish to borrow a Direct Loan please follow the steps listed below.
- File a Free Application for Federal Student Aid (FAFSA)
- Complete and sign a Master Promissory Note with the Department of Education at studentaid.gov.
- If you are a first time Direct Loan borrower complete entrance loan counseling at studentaid.gov.