Home / Cost & Aid / Financial Aid / Loans / Federal Direct Loans Federal Direct Loans The U.S. Department of Education provides low-interest loans, called Federal Direct Loans, which offer fixed interest rates and flexible repayment options, making them a reliable choice for many students. Federal Direct Student Loans are available to all eligible students. Students must be enrolled in 6 eligible credits to receive Direct Subsidized, Direct Unsubsidized or Direct PLUS loans. Types of Federal Loans how to apply for a loan Interest Rates & Fees Estimated monthly payment Disbursement Exit Counseling Repayment Plans & Calculators Types of Federal Loans Back to Top Direct Subsidized Loans Direct Subsidized loans are available to students who demonstrate financial need. Subsidized Loans are interest free while the student is in school, but begin accruing interest six months after the student ceases to be enrolled for at least 6 credits (half-time). Learn more about the Direct Loan Program from Federal Student Aid. Direct Unsubsidized Loans Direct Unsubsidized Loans do not require financial need. These loans are not interest free while students are in school and begin accruing interest after disbursement. Learn more about the Direct Loan Program from Federal Student Aid. Direct PLUS Loans for Parents Parents of dependent students may apply for Direct PLUS Loans. These loans are available regardless of financial need and the amount of eligibility depends on the total cost of attendance. We encourage students to apply for the Federal Direct Loan (subsidized and unsubsidized) prior to determining PLUS Loan eligibility. how to apply for a parent plus loan How to apply for a Federal Direct Loan Back to Top To qualify for a loan, you must be a degree-seeking at student at JC in good academic standing and enrolled in a minimum of 6 credit hours. Follow these steps to initiate a request for a loan: 1. File FAFSA The first step in the loan application process is to complete the FAFSA. The results of the FAFSA will be used to determine your loan eligibility. File fafsa 2. JC Federal Direct Loan Request Form New and returning students must complete the JC Federal Direct Loan Request form each academic year, in addition to the FAFSA, to apply for a Federal Direct Loan. Loan application – Summer 2025 3. Entrance Loan Counseling Entrance counseling must be completed if this is your first time applying for a loan at JC. You will need your FSA ID to complete this step. This step only needs to be completed if you have not received loan funds from JC in the past four (4) years. begin entrance counseling 4. Master Promissory Note First Time Jackson College Borrowers Only. A MPN is a binding legal document you must complete and sign to receive Federal Direct Loan funds. All students will be required to complete a Direct Loan MPN for JC. Complete Master Promissory Note Interest Rates & Fees Back to Top The U.S. Department of Education will deduct fees from the approved amount of your loan before the funds are sent to JC. (See charts below) ORIGINATION FEES Loan TypeFirst Disbursement DateOrigination FeeDirect Subsidized & Unsubsidized10/01/22 – 09/30/241.057%Direct PLUS10/01/22 – 09/30/244.228% INTEREST RATES Loan TypeFirst Disbursement DateFixed Interest RateDirect Subsidized & Unsubsidized07/01/23 – 06/30/245.50%Direct PLUS07/01/23 – 06/30/248.05%Direct Subsidized & Unsubsidized07/01/24 – 06/30/256.53%Direct PLUS07/01/24 – 06/30/259.08% Direct Loan Disbursement Back to Top If you’ve been awarded a loan, check your loan amount in JetStream under “Financial Aid” and “Review and accept your Financial Aid Award Package.” The U.S. Department of Education deducts a 1.057% origination fee from Direct Loans and 4.228% from PLUS loans. Additional information will be provided by the Department of Education. Below are estimated disbursement dates for standard 15-week courses. These dates indicate when loan funds will be applied to your JC student account, not refund dates. Actual disbursement dates may vary based on late start class registration or if you accept your loan after the semester begins. Loans for fall, spring, or summer semesters will have two disbursement dates. Summer 2025 Semester Second date loan funds applied to account (for a one semester loan): 6/30/25 Earliest date loan funds applied to JC account: 6/23/25 Estimated Monthly Payments Back to Top Estimated Monthly Payment for Direct Loans and FFEL Program Loans (Standard Repayment) Debt When Loan Enters RepaymentPer Month*Total$5,000$58$6,904$10,000$115$13,809$25,000$288$34,524$50,000$575$69,048$100,000$1,151$138,096 *Payments were calculated using a fixed interest rate of 5.5% for loans disbursed on or after July 1, 2023 and before July 1, 2024. Federal Direct and PLUS Loan information will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders and institutions determined to be authorized users of the data system. Student Loan Exit Counseling Back to Top Students who borrow under the Federal Direct Loan Program are required to complete exit loan counseling shortly before graduating or otherwise leaving school. If you have any questions as you complete the counseling requirements, you may contact the Office of Financial Aid at 517.796.8410 or by email at JCFinancialAid@jccmi.edu. You may find additional information in the Direct Loan Exit Counseling Guide. Note: You will need your FSA ID to complete exit counseling. 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