William D. Ford Federal Direct Loan Program

Procedures for Students who have been awarded financial aid for academic year 2010-2011 and want to make changes or apply for a Direct Loan.

Students already awarded/accepted loan can:
All changes must follow steps 1-7 and have the appropriate change in the box (i.e. dollar amount, "0", or 1=fall, 2=spring).
  1. Log into MYCCRI.
  2. Type in your user name and password.
  3. Click For Students.
  4. Click Financial Aid Awards.
  5. Click Award for Aid Year (2010-2011).
  6. Click Resources/Additional Information tab.
  7. Enter the appropriate change in the box to the right, then click the Submit Information button.

Frequently asked questions

What is direct lending?

Direct lending is a loan process that is performed with the school you are attending and the US Department of Education.  You apply by completing a FAFSA, a Master Promissory Note and an entrance interview, but borrowers now will receive federal loan money directly from the Department of Education (DOE), instead of through a lender or bank.  Each borrower will now have the same lender, the Department of Education.

Will this change or impact loans that I have received?

Some students may have loans from more than one lender that could result in more than one monthly payment.  (The exception is for loans made during the 2008-09 academic year; all loans will remain with the same lender that you selected on your (MPN) Master Promissory Note ). 

In 2008-09, many private lenders sold their Stafford Loan portfolio to the DOE which gave the DOE additional funding to make new loans; this means that most Stafford Loans borrowed in 2008-09 will be repaid to the DOE and not the original lender 

Beginning in the 2009-10 academic year, most lenders will be selling the loans guaranteed under the Family Federal Education Loan Program (Subsidized Stafford, Unsubsidized Stafford and PLUS loans) to the Department of Education.  Lenders will notify borrowers once they have sold the loan(s).

It is very important that you check with your lender to find out which loans have been sold and work with the Department of Education to consolidate the loans you have borrowed.

What is the process to apply for a Loan?

  1. Complete the FAFSA, at www.fafsa.ed.gov (CCRI has a priority date of May 1st)
  2. Complete required entrance counseling at www.studentloans.gov
  3. Complete a required Master Promissory Note at www.studentloans.gov
  4. Loans will be processed in date order. If you apply after June 30, there is no guarantee that the loan will be in place for your bill. So please make payment arrangements.
  5. Please note: Loans are available for the fall and spring terms only. CCRI does not process loans for the summer term.
Why do I have to complete a Master Promissory Note (MPN)

You will be borrowing from a new lender, the federal government. This will be the only promissory note you will have to sign as long as you continue to attend CCRI. 

What is the interest rate?

Effective July 1, 2010, subsidized loans for undergraduate students have a fixed interest rate of 4.5 percent, and unsubsidized loans have a fixed interest rate of 6.8 percent. These loans also have a 1.0 percent origination fee, but the federal government will partially offset this with a .5 percent interest rebate.

What if I have already had a Direct Loan?

If I have already completed a Direct Loan Master Promissory Note for another school, do I have to complete another one for CCRI? 

You will not have to complete a new Direct Loan MPN if the MPN you signed while attending another school is still active. You would need to contact the Student Applicant Service Center at 1-800-557-7394 to confirm that you have an active promissory note.

New: Parents who have applied for a PLUS loan in the past and were denied (making their child eligible for increased Stafford money) MUST apply for a PLUS loan through www.studentloans.gov. Remember that parents of students will need their Personal Identification Number (PIN), which is the same one used when completing the FAFSA.

Federal DIRECT Loans

Eligibility for subsidized Federal Direct Loans is based upon financial need as determined by the Department of Financial Aid, using information from the FAFSA. Subsidized loans are interest free during the student's period of enrollment and for a six-month grace period after leaving school or dropping below half-time status. Unsubsidized Federal Direct Loans, which do not require financial need, have an interest charge during the in-school and grace periods. (Check with your guarantor or if you have a Direct loan, the DOE).

Annual Loan limits are as follows and are dependent on enrollment status and unmet need:
Aggregate Loan Limits:
Federal DIRECT Parental Loans for Undergraduate Students (PLUS)

Federal Direct PLUS Loans allow parents of dependent undergraduate students to borrow up to the full cost of college less other student aid. A student must complete a FAFSA.  There is no financial need requirement for the PLUS loan, but parents must pass a credit review in order to qualify for the loan. Repayment may be deferred for up to six months after the student is no longer enrolled at least half time (6 credits). However, interest does accrue on the loan and is capitalized into the loan principal before repayment begins. The interest rate on these loans is fixed at 7.9 percent. Federal Direct PLUS Loans have an origination fee of 4 percent, but the federal government will partially offset this with a 1.5 percent interest rebate.

Private Loans

The only type of loan that will be certified through private lenders for 2010-2011 are the alternative loans, such as RIFEL, or the RI Family Education Loan.  As always CCRI recommends that you use all grant, scholarship and federal loan options prior to applying for a private student loan. Remember there are many differences between lenders and the terms and conditions of their loans, so research your options and compare lenders before making a final selection.

Still have questions?

Because these programs are offered via the U.S. Department of Education please call the Direct Loan Program Customer Service at: 1-800-848-0979

Additional important information:
Loan Application Deadlines

For Fall 2010

For Spring 2011

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