BW students planning to borrow a Federal Direct Loan must complete entrance counseling and submit an electronic Master Promissory Note (eMPN). These steps should be followed by students who have received an offer letter from the financial aid office.
You need your FSA ID to complete this process. Each requirement takes approximately 15-20 minutes to complete. Be sure you have enough time to complete the process in a single session. You may not have the option to save your work.
Federal Direct Subsidized Loans
Federal Direct Unsubsidized Loans
Student must meet all terms of Federal Direct Subsidized Loan except:
See the chart below for the 2023-24 interest rates and fees effective for loans with periods of enrollment (loan periods) beginning on or after July 1, 2023.
| Loan Program | Direct Loan | |
| Interest | Fees | |
| Federal Subsidized Direct Loan - Undergraduates | 5.50% | *1.057% |
| Federal Unsubsidized Direct Loan - Undergraduates | 5.50% | *1.057% |
| Federal Unsubsidized Direct Loan - Graduates | 7.05% | *1.057% |
| Federal Parent PLUS | 8.05% | *4.228% |
| Federal Graduate PLUS | 8.05% | *4.228% |
*Origination fees subject to change for the 2023-24 academic year after October 1, 2023.
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
| First-Year Undergraduate Annual Loan Limit | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third-Year and Beyond Undergraduate Annual Loan Limit | $7,500-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
| Graduate or Professional Student Annual Loan Limit | Not Applicable (all graduate and professional students are considered independent) | $20,500 (unsubsidized only) |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000-No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
Direct Subsidized Loans are available to students who have completed a Free Application for Federal Student Aid (FAFSA) and are eligible based on financial need. No interest is charged while attending school at least half-time, during your grace period, and during deferment periods.
Direct Unsubsidized Loans are available to students who have completed the FAFSA, but eligibility is not based on financial need. Interest accrues during school, grace period and deferment. Interest accruing during these periods may be paid or capitalized.
PLUS Loans are available to credit-worthy parents of dependent undergraduate students. Parents may borrow the difference between the student's total cost of attendance and all other aid the student is receiving.
PLUS Loans for Graduate Students are available to credit-worthy graduate students. Students may borrow the difference between the total cost of attendance and all other aid received. In order to borrow a Grad PLUS loan, a student must complete a FAFSA and complete the necessary loan application.
Consolidation Loans are available to students and parents. Direct Consolidation Loans allow borrowers to combine one or more federal education loans into a new loan that offers several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments. Parent PLUS Loans cannot be consolidated with the student's loans.
A student must be enrolled at least half-time at a school and must meet general eligibility requirements for the Federal Student Aid (FSA) programs.
Submit the Free Application for Federal Student Aid (FAFSA) to BW. The Financial Aid Office will determine each student's eligibility for Federal Direct Student Loans on a yearly basis.
Because eligibility for Direct Student Loan is based on credits earned, undergraduate dependent students may request up to $1,000 in additional federal loan funds when advancing from first-year (freshman) to second-year (sophomore) rank, and when advancing from second-year (sophomore) to third-year (junior) rank during the academic year, such as between fall and spring semesters.
Undergraduate independent students may request up to $2,000 in additional loan funds when advancing from first-year (freshman) to second-year (sophomore) rank, and when advancing from second-year (sophomore) to third-year (junior) rank during the academic year.
Once you graduate or drop below half-time, resulting in your loan going into repayment, you can contact your federal loan servicer to explore consolidation options. For more information, visit the U.S. Department of Education Consolidation Department or call (800) 557-7392.
When it comes time to repay, you can pick a repayment plan that suits your financial situation. The Direct Loan Program offers various repayment plans. For more information, please visit the student aid website.
| Non-Consolidation Loans | Consolidation Loans | |
| Standard repayment plan | * Repayment up to 10 years * Lowest total interest paid * Automatic payment plan if payment plan is not chosen | * Repayment up to 10 to 30 years based on total education indebtedness |
| Graduated repayment plan | * Repayment up to 10 years * Payments start out low, then increase every two years * Beneficial if income is low now, but may steadily increase | * Repayment up to 10 to 30 years based on total education indebtedness * Payments start out low, then increase every two years * Beneficial if income is low now, but may steadily increase |
| Extended repayment plan | * Repayment up to 25 years * Must have more than $30,000 in Direct Loans * Monthly payment will be lower than Standard Repayment * Will pay more on loan because of the interest that accumulated during the longer repayment period. | |
| Income contingent repayment | * Repayment up to 25 years * Monthly payments based on annual income, family size, and total amount of Direct Loans * Unpaid portion of loan is forgiven, but you may have to pay income tax on the amount that is forgiven |
Who do I call about loan repayment questions?
Visit Federal Student Aid for a list of toll-free numbers for Direct Loan servicers.
How can I keep track of my Federal Direct Loans?
Knowing who is servicing your Federal Student Loans is critical in shaping your financial future. Visit the Student Aid website. Federal Student Aid provides a central database for student aid and allows students access to view information from schools, guaranty agencies, the Direct Loan program and other programs; this is a valuable tool in managing your federal student loan information. Managing your debt is your responsibility, and this website is a vital tool for keeping track of your financial obligations.
Federal Direct Loan change form - This form is to be completed by students who:
Repayment options - This is the Department of Education's information on repayment options.
Repayment calculator - This tool calculates an estimated monthly payment.
Grade Level Advance Form - This form is to be completed by undergraduate students who have advanced a grade level during the academic year and wish to apply for additional Federal Direct Student Loan. A link to the current year Grade Level Advance/Loan Request form is added to MyBW's Forms page at the end of fall semester.
BW's Federal ID Code: 003014
