Phoenix Seminary participates in the William D. Ford direct loan program. Loans are serviced by designated Federal Loan Servicers and must be repaid.
Unsubsidized Stafford Loan Program
Federal Direct Unsubsidized Stafford loans are available to qualified students. Funds are transmitted electronically to the student’s tuition account. Interest on the Unsubsidized Stafford loan begins to accrue at the time of the first disbursement. Repayment of loans will begin six months after graduation or withdrawal from school.
Federal Student Loan Changes
As a result of the Budget Control Act of 2011 the U.S. Department of Education has announced the following changes to Federal Student Loans for summer 2012 and the Academic Year 2012–2013.
- Loss of Subsidized Loan Eligibility for Graduate and Professional Students
Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate students are no longer eligible to receive Federal Direct Subsidized Loans (loans in which the interest was paid on the borrower’s behalf while enrolled in school or within a grace or deferment period).
The annual loan limit for graduate and professional students remains unchanged but this amount will now be limited to Direct Unsubsidized Loans.
- Termination of Direct Loan Borrower Repayment Incentives
This provision affects all discount fee rebates for both undergraduate and graduate level students.
The Budget Control Act also terminates the authority of the Department of Education to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Federal Direct Loan with a first disbursement date that is on or after July 1, 2012 (this includes the Direct Parent PLUS / Grad PLUS Programs). The law continues to authorize the Department of Education to offer interest rate reductions to Direct Loan borrowers who agree to have electronic payments automatically debited from a bank account.