Federal Direct Student Loans Q&A


Federal Direct Loans are low-interest loans for students to help pay for the cost of a student’s higher education. The lender is the U.S. Department of Education rather than a bank or credit union.

Students need to complete all required application materials each academic year. Green River’s academic year runs from Fall through Summer.

What is a Direct Loan?

Federal Direct Loans help meet today’s cost of higher education. The U.S. Department of Education is the lender. These loans do not require credit checks or collateral, and are not based on a student’s credit history. Student loans provide a variety of deferment options and repayment terms.

Federal student loans are either subsidized or unsubsidized. Subsidized loans are need-based and the government pays the interest while the student is attending school at least half-time and during periods of deferment. Unsubsidized loans are not need-based, and the student is responsible for interest on unsubsidized loans at all times.

Federal education loans offer fixed interest rates that are typically lower than the variable rates offered by most private student loans. For loans first disbursed on or after July 1, 2017 through June 30, 2018, the interest rate is 4.45% for subsidized and unsubsidized loans. Loans first disbursed on or after July 1, 2018 through June 30, 2019, the interest rate is 5.05% for subsidized and unsubsidized loans. 

In addition to the interest, there is a loan fee on Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed. See detailed information from the office of Federal Student Aid.

Students must be enrolled at least half-time (6 credits), in an eligible program, taking classes required for that program and meeting the academic progress policy.

How do I apply?

Since Direct Loans are considered part of the Federal Financial Aid Programs, each academic year students must complete the following before student loan applications are approved and sent to the servicer.

STEP 1: Complete all required application materials.

  1. FAFSA  (Free Application for Federal Student Aid) for the applicable academic year.
  2. You may be required to provide other documents if your file is selected for verification.
  3. We will notify you of your application status via Green River student email.  You can also check your application status from the Student Financial Aid Portal.

STEP 2: NEW student borrowers must complete Direct Loan Entrance Counseling and a Direct Loan Master Promissory Note online before the loan request will be processed. Read more about Entrance Counseling and Master Promissory Note.

  1. Go to https://studentloans.gov. You will need your FSA ID to log in to the website. Call the Federal Student Aid Information Center (1-800-433-3243) if you need assistance with your FSA ID.
  2. Select “Complete Loan Counseling”; Click the START button next to Entrance Counseling and select “I am completing entrance counseling to receive Direct Loans as an undergraduate student.”
  3. Go back to My Home Page and select Complete Loan Agreement. Click the start button next to “MPN for Subsidized/Unsubsidized Loans.”
  4. If you have any problems, you can call the Student Loan Support Center at 1-800-557-7394.

How much can I borrow?

Direct Loans have annual maximum loan amounts based on grade level, dependency status, your overall financial aid eligibility and other aid awarded. You must have earned 45 credits towards your program of study to be considered a second year student. Since the total of your aid cannot exceed your applicable Green River College budget, you may not be eligible for the maximum loan amount.

Student TypeBase Amount Additional UnsubsidizedTotal
Dependent/1st Year $3,500 $2,000 $5,500
Dependent/2nd Year $4,500 $2,000 $6,500
Independent/1st Year  $3,500  $6,000  $9,500 
Independent/2nd Year  $4,500  $6,000  $10,500 
Bachelor’s Degree Dependent/3rd Year and Beyond  $5,500  $2,000  $7,500 
Bachelor’s Degree Independent/3rd Year and Beyond  $5,500  $7,000  $12,500 

When will I get my loan funds?

The college cannot forward the loan application to the U.S. Department of Education until after the student has electronically signed the Master Promissory Note (MPN) and completed the Direct Loan Entrance Counseling. (See 'How do I Apply?')

Direct Loans are always issued in multiple disbursements, and disbursements are not available prior to the first day of the quarter.

If your loan is for two, three, or four quarters, it will be divided equally among the quarters.

Green River will receive your loan funds electronically. We will apply the funds to your tuition and fees, if there is a balance owing. We will disburse any remaining loan funds to you via the method you choose through BankMobile Disbursements.

Your loan funds are to be used for educational expenses that may include your tuition and fees, room and board, books, computer purchase, miscellaneous living expenses, gas for your car or bus tickets and child care costs.

Who are my lender and loan servicer?

There is no need to select a lender, as the U.S. Department of Education is the lender for Direct Loans. 

You can retrieve your loan information from the National Student Loan Data System (NSLDS). NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.  The information is also accessible for guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Visit My Federal Student Aid to view information about all of the federal student loans you have received and to find contact information for the loan servicer for your loans. You will need your FSA ID to access your information.

What are my rights and responsibilities?

So that your future monthly payments don't become a burden, you should estimate how much you need and what your loan payments would be.

The following are sample monthly loan repayments under a standard 10-year repayment plan (same monthly payment every month).

Sample Repayment Plan
Initial Loan AmountNumber of PaymentsStandard Monthly PaymentEstimated Total Repayment
$5,000  120  $52  $6,204 
$10,000  120  $103  $12,408 
$15,000  120  $155  $18,612 
$20,000  120 $207 $24,816
$25,000 120  $258  $31,019 
$30,000  120  $310  $37,223 
Based on a 4.45% interest rate for subsidized and unsubsidized Direct Loan (as of July  2017)
  • The terms of your loan are described in the promissory note - read them carefully so you understand your obligation to repay the loan according to the terms of the note.
  • Let your lender and the Financial Aid Office know if you change your address, name, telephone number, enrollment statusor school.
  • Communicate with your lender or the agency holding the loan if you are having trouble making payments - you may be able to temporarily postpone or reduce your payments.
  • Keep your promissory note, loan disclosure statement and repayment schedule to refer to the interest rate, how much you borrowed and the terms of your loan.
  • Your loan will have a grace period, usually six months, when you don't have to make principal payments. The grace period starts after you withdraw from school, drop to less than half-time, or graduate and don't continue college.
  • Begin making payments at the end of your six month grace period - contact your lender if you haven't received a repayment schedule.
  • A student loan in 'default' can damage your credit record - be sure to make timely monthly payments.
  • Your lender must give you at least five years to repay your loan as long as you meet the minimum monthly payment.
  • In addition to a flat monthly payment option, you may choose an income-sensitive or graduated repayment schedule to make lower monthly payments initially and increase them as your income increases.
  • You may prepay part of or all of your loan without penalty.
  • The only circumstance to exempt you from repaying your loan is permanent and total disability.
  • The U.S. Department of Education requires all student loan borrowers to complete Loan Exit Counseling when they are about to graduate, or drop to less than six credits, or will cease attendance for six months.

When do I complete Direct Loan Exit Counseling?

The U.S. Department of Education requires all student loan borrowers to complete Loan Exit Counseling so they know their rights and responsibilities.  You will also be provided with the different repayment options available to you. Exit Counseling will not affect a student's ability to receive financial aid in the future.

Students must complete the online Exit Counseling when they are about to graduate, or to drop to less than six credits, or will cease attendance for six months. Your 6-month grace period starts the day after one of these events occurs.  You don't have to begin making payments until your grace period ends.

To complete Exit Counseling, go to www.studentloans.gov

  1. Use your FSA ID and password to login.
  2. Select "Complete Counseling"
  3. Then choose "Start Exit Counseling"
  4. Allow about 20-30 minutes to complete the exit counseling.  You must complete the counseling as it will not allow you to save your work.
  5. After completing the counseling, you should print the confirmation page for your records.

The Financial Aid Office will also receive an electronic verification that you completed the exit counseling. 

If you have questions about completing the counseling, contact client services at 1-800-557-7394 or the Financial Aid Office at finaid@greenriver.edu.

How do I find more information about Federal Direct Loans, how to calculate repayments and how to manage my own loan repayment?

The U.S. Department of Education provides tools and information to manage your student loans. 

Could I defer or postpone my payments?

If you can't make your student loan payments because of a temporary financial hardship, you may be eligible for a deferment. A deferment allows you to temporarily postpone your monthly payments. Contact your loan servicer for more information regarding receiving a deferment.


Interested in Financial Aid for Fall 2019 to Summer 2020?  The 2019 -2020 FAFSA/WASFA is available now! See Applying for Aid

Spring Quarter 2019

Spring quarter tuition holds will be given to files completed by January 31.

Processing Updates

We are currently processing 2018-2019 applications completed in January 2019. (updated on 1/15/19).

Federal School Code

Our Federal School Code is 003780

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