William D. Ford Federal Direct Student Loans (DSL)
To apply for and receive federal financial aid, students must be enrolled at least half-time (8 credits) and maintain satisfactory academic progress.
Subsidized loans are available to students who meet certain financial-need criteria, usually based on income. The federal government pays the interest on subsidized loans and defers repayment of the principal while the student attends school, during a six-month grace period after the student leaves school, and during periods when the student is authorized to defer loan payments.
Unsubsidized loans are available to students regardless of financial need. Interest accumulates on unsubsidized loans from their inception while attending school, during the grace period, and during any periods when loan payments are deferred. Repayment of the principal is deferred until six months after the student graduates or withdraws from the program.
Federal Student Loan Application Procedures
Complete a Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov. To complete the FAFSA, and also to complete your Master Promissory Note, you will need AAAOM’s Federal School Code: 038333 (If an 8-digit code is required: 03833300) . You will also need to refer to your most recent tax returns to complete the FAFSA.
Complete a Master Promissory Note (MPN) online at www.studentloans.gov. Including the loan counseling process, completing and signing an MPN can take approximately 50 minutes. Please note: Students who apply for a Graduate Plus loan will need to fill out a separate MPN for the Graduate Plus loan amount. However, before you apply for a Graduate Plus loan, you should discuss this option with the school’s Financial Aid Administrator.
Meet with AAAOM’s Financial Aid Administrator (FAA) about a week after completing the FAFSA and Master Promissory Note to go over the results of your Individual Student Information Report (ISIR). The FAA will answer any questions you may have about structuring your loan, and will tell you if you need to supply any verification materials. For loans disbursed after July 1, 2013, a graduate-level student could receive up to $20,500 per year in Direct Unsubsidized loans. The maximum interest rate for Direct Unsubsidized Loans made to graduate or professional students is 9.5%.
Students who are new to the school must complete Student Entrance Counseling. This is done online at www.studentloans.gov and may be done at the same time as the MPN or at another time. Both the MPN and Student Entrance Counseling must be completed, however, before your first financial aid disbursement can be released to you.
Once your loan has been processed, you will receive an Award Notice in your student mail box. Sign the Award Notice and return it to the FAA.
Financial aid is typically disbursed at the beginning of each trimester. At AAAOM, trimesters begin in September, January, and April. The FAA will notify you when you have a check waiting for disbursement.