Direct Loans are federal student loans awarded to students who have completed the Free Application for Student Aid (FAFSA) and have met all financial aid eligibility requirements. The requirements are as follows:
- Active enrollment in a degree or certificate program at the Adler School
- Maintenance of satisfactory academic progress: completion of at least 70% of all attempted coursework and a cumulative GPA of at least 3.0
- Maintenance of at least half-time enrollment as defined by your academic program:
- M.A. or Certificate candidates: at least four credit hours per semester
- Psy.D. candidates: at least five credit hours per semester
- Or continued enrollment in any of the following: Practicum, Practicum Continuation, Internship (part- or full-time), Dissertation Proposal, Dissertation, Dissertation Continuation
- US citizen or permanent resident
- Not in default on any previously awarded federal loan
Repayment of loans begins 180 days (six months) after the last term a student is enrolled at least half-time. Loans carry interest; your financial aid counselor can provide you with the interest information pertinent to your academic year.
There are two types of Direct Loans: subsidized and unsubsidized.
Subsidized Direct Loans All students who meet federal eligibility requirements are guaranteed Direct Stafford Loans through the Department of Education's Title IV Federal Assistance Program. While a student is enrolled at least half-time in an academic institution, or during any other period of loan deferment, all interest on subsidized loans is paid by the federal government. Interest on the loan begins to accrue after the student has graduated, withdrawn, or dropped below half-time enrollment.
Unsubsidized Direct Loans Unsubsidized Direct Loans are available to all students who meet financial aid eligibility requirements, regardless of financial need. Interest begins to accrue on unsubsidized loans immediately upon disbursement.
Limits for Direct Loans
- Psy.D: $37,165 per year in Direct Stafford Loans (Up to $8,500 of this may be in the form of Subsidized Direct Stafford Loans, depending on each student’s Estimated Family Contribution as calculated by the Department of Education upon review of information submitted on the FAFSA.)
- M.A. and Certificate: $20,500 per year in Direct Stafford Loans (Up to $8,500 of this may be in the form of Subsidized Direct Stafford Loans, depending on each student’s Estimated Family Contribution as calculated by the Department of Education upon review of information submitted on the FAFSA.)
- Psy.D. candidates may borrow up to $65,500 in Subsidized Direct Loans, and up to a combined lifetime aggregate amount of $224,000 between Subsidized and Unsubsidized Direct Loans.
- M.A. and Certificate candidates may borrow up to $65,500 in Subsidized Direct Loans, and up to a combined lifetime aggregate amount of $138,500 between Subsidized and Unsubsidized Direct Loans.
Direct Graduate PLUS Loans
Direct Graduate PLUS Loans are a federal unsubsidized loan program available to students who need additional aid after accepting Direct Loans. Repayment begins after the last term a student is enrolled at least half-time. These loans carry interest; your financial aid counselor can provide you with the interest information pertinent to your academic year.
Direct Graduate PLUS Loans require credit approval. Credit is evaluated each time a loan request is made, unless a student has had a credit decision within the preceding six months. Try to obtain a credit report in advance of applying for a Direct Graduate PLUS Loan. And, work to correct negative credit report items as soon as possible. Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, students must not have any of the following items on their credit report:
- Any current delinquency of ninety days or more
- Any of the following items within the preceding five years of the date of the credit report: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection
Note: a loan applicant may qualify for a PLUS Loan based on extenuating circumstances if the applicant:
- Has been or is delinquent for 180 days or less on mortgage loan payments or on medical bill payments for the applicant or the applicant's family
- Does not otherwise have an adverse credit history as determined in accordance with the Federal regulations that apply to PLUS Loan applicants
If you are denied credit, try to:
- Apply with an endorser (co-signer) for the loan
- Correct any invalid information on your credit report that may have led to the denial
- Appeal the denial by contacting Applicant Services:
(800-557-7394) 8:00 A.M.-8:00 P.M. (EST), Monday through Friday
(877-461-7010) Telecommunication Device for the Deaf (TDD)
Alternative Loans are an option for students who need more financial aid after accepting Direct Loans and/or who are not eligible to receive federal student loans (including international students). Alternative Loans are private loans (not federal) that cannot be consolidated with Direct Loans. Interest rates on Alternative Loans are not fixed and can vary by lender and borrower's credit rating.
Alternative Loans require credit approval. If credit is denied, you will need an endorser (cosigner). International students must have a cosigner who is a US citizen or permanent resident.
National Health Service Corps/Federal Loan Forgiveness
For current students and alumni considering student debt relief options, the Adler School of Professional Psychology strongly encourages participation in the National Health Service Corps (NHSC). This US Department of Health and Human Services program was formed to ensure an adequate supply of health professionals to provide primary health services to populations located in designated health professional shortage areas. As an incentive for medical professionals to participate in this program, the NHSC will repay up to $50,000 of federal student loans for participants that commit to a two-year contract.