If one of the following scenarios applies to you, please notify our office by submitting the Financial Aid Loan Change Form found at www.jmu.edu/finaid/forms.shtml
Freshmen and First-time JMU Borrowers:
Federal Direct Loans are long-term loans available to students enrolled for at least a half-time basis in a degree or teacher certificate program. The federal government pays the interest on subsidized loans while the borrower is in school, during the borrower's grace period and during authorized periods of deferment. However, the Consolidated Appropriations Act of 2012 temporarily eliminates the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis. This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
The federal government does not pay the interest on unsubsidized loans during these periods. You are responsible for paying the interest. If you opt not to pay the interest, then it will be capitalized, or added back into the principal amount of your loan.
Repayment begins six months after you drop below half time enrollment, which is graduation for most students. The basic repayment period for Direct Loans is ten years; however, in some cases you can extend this. You will need to contact your lender or loan servicer to discuss extending a ten year repayment period.
Students will receive notice from the Department of Education when the Direct Loan is approved for disbursement. The University Business Office will notify the student by electronic mail when the loan funds have been credited to the student account each semester. Students have 14 days from the time a Direct Loan has been credited to request it to be cancelled.