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 either requires your attendance at NAU. As of July 1, 2008, the interest rates are: Subsidized: 6.0% and Unsubsidized 6.8% As of July 1, 2009, the interest rates are: Subsidized: 5.6% and Unsubsidized 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 also in the student's name. 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. If a loan is not disbursed in the first 12 months from the date that the MPN is signed, the MPN will expire. and the student must re-apply. The responsibility will lie with each student to keep track of how much she or he has borrowed each year. For more information on the Master Promissory Note (MPN), please visit: https://dlenote.ed.gov  and https://www.dl.ed.gov If you have never completed a Master Promissory Note, you may complete one on-line at: https://dlenote.ed.gov  The Master Promissory Note is a legal document, so faxes and photocopies are not acceptable. You will also need to complete entrance counseling which may be done online at www.dlssonline.com If you have signed a Master Promissory Note (MPN), in a previous academic year and this MPN will be in effect for ten years, you do not have to do another MPN to accept a loan.  Entrance Counseling is required if you have not done entrance counseling at NAU.

Declining or Reducing the Amount of your Loan

Please contact us via: E-mail: at Financial.Aid@nau.edu preferred method) 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) 523-4951 Visit our office in Gammage Building #1

Loan Limits - Effective July 1, 2008

Dependent Students (Except Students whos parents cannot borrow PLUS)	Base Amount	Additional unsubsidized loan amount
		Prior to 7/1/08	Effective 7/1/08
Freshman	$3,500	$0	$2,000
Sophomore	$4,500	$0	$2,000
Junior or Senior	$5,500	$0	$2,000
Independent Undergraduate Studets and dependent students whose parents cannot borrow a PLUS Loan	Base Amount	Additional unsubsidized loan amount
		Prior to 7/1/08	Effective 7/1/08
Freshman	$3,500	$4,000	$6,000
Sophomore	$4,500	$4,000	$6,000
Junior or senior	$5,500	$5,000	$7,000
Graduate and Professional Students	Base Amount	Additional unsubsidized loan amount
	$8,500	Unchanged at $12,000
Aggregate Loan Limits (Effective 7/1/08)
Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized) Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized) Graduate and Professional Students: currently $138,500 (no more than $65,500 of which can be subsidized)
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)