Federal Direct Loans for Students

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The Federal Direct Loan program is comprised of two types of student loans, subsidized and unsubsidized. Acceptance of the loan(s) requires your attendance at NAU. The current interest rate on Direct subsidized and unsubsidized loans is 6.8%

The SUBSIDIZED LOAN is a loan that is in the student’s name and is based on financial need. The Department of Education will pay the interest on this type of loan if you continue at least half-time enrollment.

The UNSUBSIDIZED LOAN is a loan that is in the student's name and the interest starts accruing when funds are received...the student is responsible for payment of the interest while in school.

Master Promissory Note and Accepting Your Loan

In order to accept and receive a student loan, a Master Promissory Note must be signed. This is a legal document of considerable significance. Beginning in 2003, there will be just one Master Promissory Note which will be in effect for ten years, regardless of where the student attends. Students who signed a Master Promissory Note in the previous academic year -- whether at NAU or at another school -- will not have to sign another promissory note for student loans for ten years. The responsibility will lie with each student to keep track of how much she or he has borrowed each year. If you have never signed a Master Promissory Note, one will be enclosed with your Award Notice packet. If you wish to accept the loan, you must complete the Master Promissory Note (in blue or black ink), sign and return it to the NAU Office of the Bursar by dropping it off in-person or by mailing it to: Office of the Bursar PO Box 4079 Flagstaff AZ 86011-4079 The Master Promissory Note is a legal document, so faxes and photocopies are not acceptable! Also for your convenience NAU process electronic MPNs which can be found at www.dlenote.ed.gov. You will also need to complete entrance counseling which may be done online at www.dlssonline.com If a Master Promissory Note (MPN) is not enclosed, it is because you signed one with NAU (or with another school) in a previous academic year and this MPN will be in effect for ten years. To accept the loan, you do not have to do anything (Entrance Counseling is required if you have not done entrance counseling at NAU)

Declining or Reducing the Amount of your Loan

You must contact us via: E-mail: at Loans@nau.edu (This is the preferred method of communication) and include your name, ID#, whether you are declining or reducing the loan, your phone#, and the specific amount of the reduced subsidized and unsubsidized loan OR Telephone: (928) 523-LOAN (523-5626) and leave a voicemail message with the same information listed above for e-mails

Maximum Academic Year Loan Limits (Fall, Spring, Summer) for Subsidized or Unsubsidized ( In effect July 1, 2007)
Academic Level	Dependent	Independent
Freshman (less than 30 hours completed)	$3500	$3500+$4000=$7500
Sophomore (30-59 hours completed)	$4500	$4500+$4000=$8500
Junior (60-89 hours completed)	$5500	$5500+$5000=$10500
Senior (90 or more hours completed)	$5500	$5500+$5000=$10500
Second Degree or Teacher Certification	$5500	$5500+$5000=$10500
Graduate or Professional	N/A	$8500+$12000=$20500
Lifetime Loan Limits
Dependent Undergraduates	$23,000 subsidized
Independent Undergraduates	$23,000 subsidized, $23,000 unsubsidized
Graduate Students	$65,500 subsidized, $73,000 unsubsidized
Keep in mind that if you borrow the maximum academic year amounts for which you are eligible in the fall and spring semesters, you will not have any eligibility left for the summer semester ... if you are considering summer attendance, please plan ahead! Regardless of which semester(s) you attend, your total loan awards are limited to the cost of attendance and other financial aid awarded. Additionally, if you have transferred to NAU from another institution these annual limits are also applicable. Students who dual enroll at two colleges or universities can not receive student loans from both institutions in the same academic year.

If you would like print out instructions on accepting or declining your awards please click here (.pdf)