Student Loans & What They Mean

Daytona State College participates in the William D. Ford Federal Direct Student Loan program, which offers long-term, low interest loans from the U.S. Department of Education. This is the largest federal aid program and the one you're most likely to find in your aid notification.

Note: Students must be enrolled at least half-time (six credit hours) to be eligible for a direct loan disbursement.

Student Loan Definitions

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  • Subsidized & Unsubsidized Loans

    There are two types of Federal Direct Student Loans: subsidized and unsubsidized. The primary difference is the point at which interest begins to accrue. Your financial aid notice may include a combination of subsidized and unsubsidized loans. For example, a freshman with a subsidized loan of $500 may also receive an offer of an unsubsidized loan for $3,000 to meet the annual limit for a freshman.

    Subsidized Loans

    No interest will accrue on a subsidized loan, and no principal will be due until the end of the six-month grace perio beginning when you graduate, leave the college or drop below half-time enrollment (6 credits). Subsidized loans are awarded to undergraduate students who demonstrate financial need as determined by FAFSA.

    Unsubsidized Loans

    Interest on an unsubsidized loan begins on the day the loan is disbursed and continues until the day that you repay the loan in full. You can pay the accumulating interest while you are in school; during the grace period; during deferment; or you have the option of capitalizing the interest (adding unpaid, accumulated interest to the total unsubsidized amount borrowed when you begin repayment). Capitalizing the interest may give you a way to postpone making interest payments, but it also increases the total cost of your unsubsidized loan.

  • Annual & Aggregate Loan Maximums

    Direct Loan Annual Limits - The amount you can borrow annually depends on your grade level, as determined by your earned units.

    Grade Level

    Earned Credits

    Dependent Undergraduate Student

    Independent Student

    Freshman

    0-29

    $5,500--a maximum of $3,500 can be subsidized

    $9,500--a maximum of $3,500 can be subsidized

    Sophomore

    30-59

    $6,500--a maximum of $4,500 can be subsidized

    $10,500--a maximum of $4,500 can be subsidized

    Junior

    60-89

    $7,500--a maximum of $5,500 can be subsidized

    $12,500--a maximum of $5,500 can be subsidized

    Senior

    90+

    $7,500--a maximum of $5,500 can be subsidized

    $12,500--a maximum of $5,500 can be subsidized

    Subsidized and Unsubsidized Aggregate Loan Limit

    N/A

    $31,000--no more than $23,000 of this amount may be in subsidized loans

    $57,500 for undergraduates--no more than $23,000 of this amount may be subsidized loans.

    $138,500 for graduate or professional students--no more than $65,000 of this amount may be in subsidized loans (the graduate aggregate limit includes all federal loans received for undergraduate study)

  • The Cost of Borrowing

    The origination fee percentage will be deducted from each disbursement before it is credited to your DSC student account.

    For any loan disbursement 
    for a loan where the first
    disbursement is/will be

         

    The origination fee percentage for 
    Direct Subsidized Loans and Direct
    Unsubsidized Loans

         

    The origination fee
    percentage for Direct
    Loan Plus

    On or after Oct. 1, 2021
    and before Oct. 1, 2022

     

    1.057%

     

    4.228%

             

    On or after Oct. 1 ,2022 
    and before Oct. 1,2023

     

    1.057%

     

    4.228%

    You will pay 1.057% of your Direct Loan proceeds to the U.S. Department of Education as a loan origination fee for loans disbursed on or after October 1, 2021 and before October 1, 2022. This fee will be deducted from each disbursement before it is credited to your College account.

  • Interest Rates

    Loan Type

    Loans Disbursed On or After July 1, 2022 and Before June 30, 2023

    Loans Disbursed On or After July 1, 2023 and Before June 30, 2023

    Direct Subsidized and Unsubsidized Loans for Undergraduate Students

    4.99%

    5.50%

    Direct Subsidized and Unsubsidized Loans for Undergraduate Students

    6.54%

    7.05%

    Direct PLUS Loan for Parents of Undergraduate and Graduate and Professional Students

    7.54%

    8.05%

  • Entrance Loan Counseling

    When you are a new borrower of a Federal Direct Student Loan at Daytona State College, you must complete an entrance loan counseling session so that you will know your rights and responsibilities as a borrower. The online session will take you about 20 minutes to complete. You will only need to complete this information once.

  • Master Promissory Note

    Borrowing from the Direct Loan program requires the completion of an Electronic Master Promissory Note. While attending Daytona State College you can use the E-MPN for multiple loans over one or more academic years. You will only need to complete this information once.

  • Repayment

    You will begin to repay your loan at the end of a six-month grace period beginning when you graduate, leave school, or drop below half-time enrollment (6 credits). Learn more about loan repayment.

    You will have three repayment options:

    • The standard repayment plan requires even monthly payments of at least $50 over a fixed period of up to 10 years. This plan usually results in the lowest total interest paid because the repayment period is shorter than under the other plans.

    • The extended repayment plan allows loan repayment over a period of up to 25 years, depending on the total amount borrowed. You still pay a fixed amount each month (at least $50), but the monthly payments usually will be less than under the standard repayment plan. This may make the repayment more manageable; however, usually you will pay more interest because the repayment period is longer.

    • The graduated repayment plan allows payments to start out low and increase every two years. Your monthly payments must be at least half of what you would pay under standard repayment. The repayment period is up to 10 years, depending on the total amount borrowed. Again, you may find it easier to manage the lower monthly payments; however, you will pay more interest because the repayment period will be longer.

 

Federal Direct Parent PLUS Loan

Daytona State College participates in the William D. Ford Federal Direct Parent Loan for Undergraduate Students Program, known as the Direct PLUS Loan. A Parent PLUS loan enables a parent to borrow for his or her dependent child. The U.S. Department of Education is the lender.

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  • Eligibility

    As the parent of a dependent student, you may use a PLUS loan to assist your student with their educational expenses.

    Through the application process, the U.S. Department of Education will determine if you are a credit-eligible borrower. Once a determination of your eligibility is made, you will be informed if you have been approved or denied for a PLUS loan.

    Applicants with adverse credit history may be eligible for a PLUS loan if they have extenuating circumstances or are able to obtain an endorser for the loan. These applicants will be required to complete PLUS Credit Counseling. DSC cannot disburse loan monies to students with this requirement until we have received confirmation of its completion.

    Should the U.S. Department of Education deny your application, Daytona State College will be notified by the Department of Education, and your son or daughter may be eligible for an additional Federal Direct Unsubsidized Loan. Eligibility for the additional unsubsidized loan is reviewed automatically upon receipt of the PLUS denial and your son or daughter can choose to accept or decline the loan through Falcon Self-Service on the MyDaytonaState portal.

    To be eligible for disbursement, the student for whom you borrow must meet all general eligibility requirements, including being enrolled in at least half-time status (6 credit hours).

  • Loan Terms

    The interest rate for Direct Parent PLUS Loans disbursed on or after July 1, 2021 or before July 1, 2022, is 6.28 percent. A 4.228 percent origination fee will be deducted by the U.S. Department of Education from the total of the Direct Parent PLUS Loan before it is disbursed to your student account for loans disbursed on or after October 1, 2021 and before September 30, 2022.

  • How to Apply

    If you are interested in borrowing a Parent PLUS loan, you must first complete the Free Application for Federal Student Aid (FAFSA). Then, the Federal Direct Parent PLUS Loan application must be completed through studentaid.gov. You as the parent, will need to sign in using your FSA ID, which is the same account used tosign the FAFSA. You can create or manage your FSA ID through Federal Student Aid.

    The studentaid.gov website gives you the option of applying to up to three institutions per dependent child and for multiple children during one application process. The site will also securely store your information to help streamline the process for future applications.

    After you have completed the online application, the Department of Education will process the application and credit approval. Daytona State College typically receives this information within two business days.

  • Master Promissory Note

    First-time PLUS borrowers are required to complete an MPN. You will only need to complete this once, unless your loan is approved with an endorser. Endorsed loan borrowers must complete a new MPN for each new endorsed loan.

  • Loan Limit

    You do not have to demonstrate financial need to borrow a PLUS Loan. The maximum amount you can borrow through the PLUS program equals the cost of attendance (COA) minus any other financial aid awarded to your son or daughter for the current academic year. If you are approved for a PLUS loan, Daytona State College will offer a loan in the amount of $10,000 or the difference between the COA and all other awarded financial aid, whichever is lower.

    Note: You do not have to borrow the full amount of the PLUS Loan offered. If you would like to decrease the amount of the loan, your son or daughter can do so through Falcon Self-Service on the MyDaytonaState portal. or you can email us at financialaid@daytonastate.edu

  • Disbursement

    The Office of Student Accounts will credit loan proceeds to the student's account to pay tuition and other college charges. Remaining funds will refund to you or (with your permission) directly to the student. If you would like to allow the refund to go directly to your son or daughter, you can indicate your preference at the time you complete the PLUS loan application.

    A student's eligibility for financial aid is partially based on the enrollment status as well as the start date of classes.  Students should be aware that certain courses have staggered or irregular start dates (A and B sub-sessions) that are not the same as the beginning of the standard semester.  Students enrolled in these courses are not eligible to receive the funds until the classes are in progress and enrollment can be verified.  This means that funds will be held until enrollment is verified for B term or late start course(s).  For example:  Since a student must be enrolled at least half time (at least 6 credits) in order to receive loan funds, if you are enrolled for 3 credits in Term A and 3 credits for Term B, your loan funds will not be disbursed until after Term B begins and your enrollment is verified.  If you are enrolled for 6 credits for Term B only, your loan funds will not be disbursed until after Term B begins and your enrollment is verified.

  • Repayment

    You will begin to repay your loan at the end of a six-month grace period that begins when you graduate, leave school, or drop below half-time enrollment (6 credits). Learn more about loan repayment.

    The repayment period for principal and interest begins after the loan has been fully disbursed. For example, a loan covering the fall and spring terms will enter repayment after the disbursement for the spring term. The first payment becomes due within 60 days after the final loan disbursement of loan proceeds for an academic year.

    You will have three repayment options:

    • The standard repayment plan requires even monthly payments of at least $50 over a fixed period of up to 10 years. This plan usually results in the lowest total interest paid because the repayment period is shorter than under the other plans.

    • The extended repayment plan allows loan repayment over a period of up to 25 years, depending on the total amount borrowed. You still pay a fixed amount each month (at least $50), but the monthly payments usually will be less than under the standard repayment plan. This may make the repayment more manageable; however, usually you will pay more interest because the repayment period is longer.

    • The graduated repayment plan allows payments to start out low and increase every two years. Your monthly payments must be at least half of what you would pay under standard repayment. The repayment period is up to 10 years, depending on the total amount borrowed. Again, you may find it easier to manage the lower monthly payments; however, you will pay more interest because the repayment period will be longer.

  • Deferment

    If your Direct PLUS loan was first disbursed on or after July 1, 2008, you may defer payment on the loan while the student for whom you obtained it is enrolled at least half time, and for an additional six months after the student graduates or drops below half-time enrollment. You must request each deferment period separately.

    If you're a parent PLUS borrower who is also a student, you can defer repayment while you're enrolled in school at least half time for an additional six months after you graduate or drop below half-time enrollment for Direct PLUS Loans first disbursed on or after July 1, 2008.

Private Loans

Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

Unlike federal loans, which offer several benefits, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions set by the lender. Private student loans are generally more expensive than federal student loans.

Additional Information on Borrowing

You can estimate your monthly payments with various repayment plans using repayment calculators available online from the U.S. Department of Education. The site also contains information on consolidating your PLUS loan(s) with other personal loans or discharging your loan under specific circumstances.

It is important that students borrowers contact their lender to make payment arrangements in order to avoid default. Loan default is when a loan becomes delinquent when a student does not make a payment by the specified due date. As a borrower of a Direct Loan or a Federal Family Education Loan Program loan, you move into default when you do not make any payments for more than 270 days, per the terms of your promissory note. A student can familiarize themselves with the loan Cohort Default Rate (CDR). For further information on Daytona State College (DSC) CDR please visit the National Center for Education Statistics (NCES) under Cohort Default Rates.

For more information on the cost of borrowing or repayment, call the Federal Student Aid Information Center at 800-4FEDAID.