A number of loan programs are available to assist BSU students

Bridgewater State University participates in the William D. Ford Direct Loan Program. This program allows students and parents to apply for federal loans directly through the Financial Aid Office. The Direct Loan Program has a loan servicer that manages repayment of loans. These centers can be reached at 1- 800-848-0979. More information about the Direct Loan Program is available through the college's Web site or at www.ed.gov/DirectLoan.

Loans are available to eligible* students in two forms: Direct Subsidized Loans and Direct Unsubsidized Loans. For loans available to parents, please see the Direct PLUS Loan described below. Direct Subsidized Loans are available to undergraduate students who demonstrate financial need and eligibility. The federal government pays interest on the loan during in-school and deferment periods. The student pays an origination fee. Check with the Financial Aid Office for fees and interest rates on Direct Subsidized and Unsubsidized loans. Loan limits are based on grade level: $3,500 for freshmen; $4,500 for sophomores; $5,500 for juniors, seniors and post bachelor's students. The amount that a student may borrow can be affected by the student's expected costs, other resources for college and receipt of other financial aid.

* Eligible student is a U.S. citizen or eligible non-citizen, is matriculated, not in default of student loans and owes no refund on federal grants

Direct Unsubsidized Loans allow all eligible* students, regardless of income, to obtain a student loan after having applied for financial aid. The student pays the interest during in-school and deferment periods or has it capitalized. The student pays an origination fee. The loan limits are the same as for the Direct Subsidized Loan. Graduate students are eligible to borrow up to $20,500. The amount that a student may borrow may be affected by the student's expected costs, other resources for college and receipt of other financial aid.

In addition, dependent undergrad students may request an additional $2,000. Students who are independent or who are dependent and whose parents are denied a Direct PLUS Loan may qualify to borrow an additional unsubsidized Direct Loan up to the following limits: $4,000 for each of the freshman and sophomore years; $5,000 for each of the junior and senior years and post bachelor's programs. The maximum amount that a student can borrow may be affected by the student's expected costs, other resources for college, and receipt of other financial aid. A student may not borrow more than the grade level loan limit for Direct Subsidized/Unsubsidized Loans, or a combination of both.

* Eligible student is a U.S. citizen or eligible non-citizen, is matriculated, not in default of student loans and owes no refund on federal grants

To Apply:

• Students must complete a Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA and forward all required verification documents to the Financial Aid Office. To apply online, go to www.fafsa.ed.gov.
• For a Direct Subsidized Loan and a Direct Unsubsidized Loan, a student must complete a Direct Loan Master Promissory Note (MPN) either online or on paper.
• The Financial Aid Office must be notified of the completion of the Master Promissory Note (MPN). If the MPN is done online, we will be notified electronically by the direct loan servicer. If the MPN is done on paper, students should return one original completed copy of the MPN to the Financial Aid Office or to the direct loan servicer.
• First-time borrowers of a Direct Subsidized/Unsubsidized Loan at Bridgewater State University must complete direct loan entrance counseling prior to receiving funds.
• Once the funds are applied to the student's account, the Office of Student Accounts notifies the student.
• If the application of funds to a student's account results in excess funds, the student will receive a refund.
• In order to remain eligible for deferment of the loans, students must be matriculated and enrolled at least half time. Students should contact the direct loan servicer to determine eligibility for deferment and to obtain deferment forms. The Office of the Registrar at BSU will certify all loan deferments.
• If the student withdraws, falls below half-time enrollment status, or graduates, he or she must complete exit counseling.
• Borrowers are required to notify the college and the servicer of any changes in name, telephone number, next of kin, withdrawal from college, transfer to another college, obtain/change driver's license, address, social security number, graduation date, or if enrollment is less than half-time.

Direct PLUS Loans are available through the college to parents of undergraduate dependent students. The loan is based on a successful credit check for the parent applicant. The maximum loan limit is the cost of education minus other resources for college and any other financial aid received. There is an origination fee of 4 percent paid by the applicant. Repayment begins within 60 days of the final disbursement, or the parent may request a deferment through the Direct Loan Servicer. Check with the Financial Aid Office for current interest rates.

To Apply:

• Students must complete a free application for Federal Student Aid (FAFSA) or renewal FAFSA. To apply online, go to www.fafsa.ed.gov.
• A parent must submit a Federal Direct PLUS Loan Request Form (obtained in the Financial Aid Office or on the college's Web site) to the Financial Aid Office.
• The Direct Loan Servicer evaluates the application (credit check, etc.) for approval.
• If the loan is not approved, the Direct Loan Servicer will notify the borrower by mail. In the case of a Parent Plus Loan denial, the parent may be given the option of obtaining an "endorser" which works much like applying with a co-applicant, or the parent may appeal the denial through Direct Loan Servicing. The parent must notify the Financial Aid Office within one week of the denial if an endorser will be used, or if they are appealing. If the loan is approved, the Direct Loan Servicer will send a Notice of Loan Approval to the parent, indicating the loan amount(s) approved and the dates on which it (they) will be disbursed.
• A parent must complete a Direct Plus Loan Master Promissory Note (MPN) either online or on paper.
• Loan funds are first applied to the student's account. If this application results in excess funds, a refund check will be issued. Any funds in excess of the balance due on the bill will be refunded to the parent, unless the parent authorizes the release of these funds to the student on the Direct Plus Loan request form.

A Federal Perkins Student Loan is awarded to eligible students and will be included in the financial aid award package. Perkins Loans have a fixed 5 percent interest rate. A student must begin repayment on this loan nine months following withdrawal from the college, graduation or dropping below half-time status.

The student must sign a promissory note to finalize and receive a Federal Perkins Student Loan. If you have received a Perkins Student Loan at any time, and are leaving the college for any reason, you must arrange for Perkins Loan exit counseling by contacting Suzanne Hickey, Federal Perkins Student Loan Officer, 508.531.1751, Room 113, Boyden Hall, or shickey@bridgew.edu. Perkins Loan exit counseling may also be done online at www.uasexit.com/.

Back to Handbook