Federal Direct Student Loans
Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, trade, career, or technical school.
Direct Subsidized Loans
A federal student loan made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education. Borrowers are not generally responsible for paying the interest while in an in-school, grace, or deferment period.
Direct Unsubsidized Loans
A federal student loan available for undergraduate, graduate, and professional students which offers a low, fixed interest rate and flexible repayment terms. Interest is usually charged on Direct Unsubsidized Loans during all periods, but the government pays your interest on Direct Unsubsidized Loans during certain periods of repayment under the Revised Pay As You Earn Repayment Plan (REPAYE), and during periods of deferment for cancer treatment.
More information about federal student loans at StudentAid.gov.
- To apply for a Federal Direct Loan, you must first complete and submit the FAFSA. The FAFSA must be completed each year by April 1. Denison will use the information from your FAFSA to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your financial aid package.
- Before Federal Direct Student Loans can be disbursed to your account, you must actively accept your loans.
- First-time borrowers must complete a Master Promissory Note and Loan Entrance Counseling.
- Loan Agreement (Master Promissory Note/MPN): MPN is a promissory note that can be used to borrow multiple loans for multiple academic years (up to 10 years). While attending Denison University, students will need to complete a single MPN. This requirement is for all first-time borrowers of a Federal Direct Student Loan.
- Loan Entrance Counseling: Entrance Counseling is required of first-time borrowers to ensure you understand the terms and conditions of your loan and your rights and responsibilities as a federal student loan borrower.
- MPN and Entrance Counseling can be completed online at StudentAid.gov under the “In School” tab, using your FSA ID. If you need to retrieve your FSA ID username or reset your password, you can do so at StudentAid.gov/FSA-ID.
- Repayment begins 6 months after a student graduates, leaves school, or drops below half-time enrollment in a degree-seeking program.
- Interest rate and fee information is available at StudentAid.gov. The net loan proceeds are credited to the student’s account electronically in two equal disbursements, 10 days prior to the beginning of each semester.
To accept, reduce, or decline federal student loans:
- Login to MyDenison using your Big Red ID credentials
- Click on MyApps and My Financial Aid
- Agree to the Terms & Conditions presented the first time you login
- Select/confirm the appropriate aid year is displayed, top right of page
- Navigate to Accept/Decline Awards under the Menu, top left of page
*Students are required to take action on any awards in Pending status before any financial aid will disburse. You must either accept or decline offered student loans. You can accept the full amount of the offered loans or you can accept a reduced amount of the loan by typing in the amount you wish to accept in the box next to the offered amount.
*If you wish to reinstate a loan you have already declined or to modify a loan you have already accepted, please contact the Office of Financial Aid. All requests for loan adjustments must be made in writing via email from your student email address.
Federal Direct Parent PLUS Loan for Undergraduate Students (PLUS loan)
To apply for a Federal Direct PLUS loan, an application must be completed by a biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student for which the loan is being borrowed. The loan is based on the creditworthiness of the borrower. The maximum a parent can borrow is Denison’s cost of education minus all financial aid the student receives.
More information about the federal Parent PLUS Loan at StudentAid.gov.
- Your (parent) FSA ID is required to complete the Parent PLUS Loan application. If you do not have an FSA ID or if you need to retrieve your FSA ID username or reset your password, you can do so at StudentAid.gov/FSA-ID.
- To apply for a PLUS loan, your student must first complete and submit the FAFSA, then the parent borrower will complete the PLUS credit application at StudentAid.gov.
- The PLUS credit application becomes available at the end of April for the upcoming academic year. You can apply for one semester at a time or for the full academic year. If you apply for the academic year, the amount will be split evenly between the Fall and Spring semesters. A new application is required each academic year that you intend to borrow a PLUS loan.
- You will also need to complete a Master Promissory Note at StudentAid.gov:
- Master Promissory Note (MPN) for a Parent PLUS Loan: The MPN is a promissory note that can be used to borrow multiple loans for multiple academic years (up to 10 years). The MPN requirement is for all first-time borrowers of a Federal Direct PLUS Loan and parent borrowers who do not have any adverse credit issues only need to complete one MPN while their student is attending Denison University.
- If you apply for a PLUS loan for multiple children, a separate MPN must be completed for each child.
- If there is adverse credit history, you may still receive a PLUS Loan by obtaining an endorser who does not have adverse credit history or by a successful appeal of the credit decision due to extenuating circumstances.
- PLUS Loan Credit Counseling is required for adverse credit history.
- Subsequent MPNs may also be required for adverse credit history.
- The school is notified of the PLUS application within 48 hours. The Office of Financial aid will review the PLUS Loan information, update the student’s financial aid award, and send an email notification of the updated financial aid award.
- Repayment begins 60 days after the loans have fully disbursed, but PLUS borrowers have the option to defer repayment until after the student graduates. The loan has a ten-year term.
- Interest rate and fee information is available at Studentaid.gov. The interest on this loan begins to accrue when it is disbursed to the student’s account and continues to accrue until the loan is paid in full.
- The net loan proceeds are credited to the student’s account electronically in two equal disbursements, 10 days prior to the beginning of each semester.
Loan Periods for the Academic Year:
- Fall Only Loan: August – December
- Spring Only Loan: January – May
- Academic Year Loan: August - May
NOTE: If you apply for a Fall and Spring loan, the loan will be awarded equally between each semester.
Processing, Disbursement, and Loan Adjustments
- Please allow 1-2 weeks for awarding of a parent plus loan once approved.
- Funds will not disburse earlier than 10 days prior to the start of each semester.
- Please contact the Office of Financial Aid via the email address linked to the parent plus loan application, to request a reduction or cancellation of your parent plus loan.