Important Notice for First-Time Borrowers
First-time borrowers of money through the Federal Direct Loan program must complete entrance counseling and sign a Master Promissory Note to receive your money.
Loans are delayed 30 days for all first-time borrowers.
About Federal Direct Loans
The Federal Direct Loan is not a grant awarded by Capital University. It is a loan and will require repayment. To apply for a Federal Direct Loan, you must complete the Free Application for Federal Student Aid (FAFSA). Even though the unsubsidized Federal Direct Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible. You can receive a subsidized loan and an unsubsidized loan for the same period. For more information, see the Student Loan Fact Sheet.
Subsidized Federal Direct Loans
- This is a need based loan.
- The interest rate is fixed at 3.4%.
- The federal government pays the interest on the loan while the student is enrolled at least half-time per term.
- There is a 10 year repayment which begins 6 months after graduation or after the student is no longer enrolled at least half-time,
Unsubsidized Federal Direct Loans
- This is not a need based loan, therefore, the federal government does not pay the interest for the student while the student is in school.
- The interest rate is fixed at 6.8%.
- The student has the option to pay the interest quarterly or let the interest accrue.
- The unsubsidized Federal Direct loan may be used along with the subsidized Federal Direct loan to receive the maximum Federal Direct eligibility.
- Independent students or students whose parents are ineligible to borrow under the Federal Direct Parent PLUS program may borrow additional unsubsidized Federal Direct loan funds during an academic year.
- Repayment terms are the same as the Subsidized Federal Direct loan.
Your financial aid award letter will indicate the maximum loan amount available for the academic year. If you plan to borrow through the Federal Direct Loan programs, be sure to apply for the amount you will need for the entire academic year.
Actions Required to Receive Your Loan Money
New Capital students or a first time new borrower at Capital MUST complete a promissory note and entrance counseling.
Direct Loan Exit Interview