Federal Direct Loans

With direct loans, the lender is the United States Department of Education (DOE). You borrow directly from the DOE to help cover your educational expenses. These loans offer low-interest rates, and you don’t have to begin paying the DOE back until after you graduate or withdraw from classes.

Depending upon your level of financial need, you may be offered one of two types of direct loans:

Federal Direct Subsidized Loan

The federal government pays the interest on a subsidized loan while the borrower is enrolled at least half-time. Effective July 1, 2013, for the 2013-2014 academic year, the federal government no longer pays the interest on your Federal Direct Subsidized Loan after you graduate with an undergraduate degree or at the time of withdrawal.

Who is Eligible?

Students who demonstrate financial need based upon the Free Application for Federal Student Aid (FAFSA)

Interest Rate?

Fixed at 4.29 percent for the 2015-2016 academic year, with a first disbursement on or after July 1, 2015 through June 30, 2016

Other Fees?

1.073 percent origination fee for loans whose first disbursement occurs between October 1, 2014 and September 30, 2015.

Loans whose first disbursement occurred between October 1, 2013 and September 30, 2014, were subject to a 1.072 percent origination fee.

Minimum Monthly Repayment?

$50 (can be more depending on full amount borrowed)

Federal Direct Unsubsidized Loan

With the unsubsidized loan, you are responsible for paying the interest on your loan. The federal government does not pay the interest as it does with a subsidized loan. You may begin paying the interest while you are still in school or add the interest to the total amount of your loan (capitalization), which you will begin repaying after you leave school, graduate or withdraw from classes.

Who is Eligible?

Students who have filed the Free Application for Federal Student Aid (FAFSA) who do not qualify for a federal direct subsidized loan

Interest Rate?

Fixed at 4.29 percent for the unsubsidized loan, with a first disbursement on or after July 1, 2015 through June 30, 2016

Other Fees?

1.073 percent origination fee for loans whose first disbursement occurs between October 1, 2014 and September 30, 2015.

Loans whose first disbursement occurred between October 1, 2013 and September 30, 2014, were subject to a 1.072 percent origination fee.

Minimum Monthly Repayment?

$50 (can be more depending on full amount borrowed)

Independent students, graduate students and any dependent undergraduates whose parents are denied a Federal Direct Parent Loan for Undergraduate Students (PLUS) due to unsatisfactory credit are automatically eligible for additional federal unsubsidized direct loan. First- and second-year students are eligible for an additional $6,000, and third- and fourth-year students are eligible for an additional $7,000 if the Direct PLUS Loan is denied. This unsubsidized loan amount is in addition to the student’s base loan limits for the Federal Subsidized and Unsubsidized Direct Loan programs listed below.

Maximum Loan Amounts

Under federal direct subsidized and unsubsidized loans, the maximum loan amounts students may borrow per year are as follows:

Year of Attendance Base amount Additional unsubsidized (dependent students EXCEPT students whose parents are denied a PLUS loan) Additional unsubsidized (independent students and dependent students whose parents are denied a PLUS loan)
First $3,500 $2,000 $6,000
Second $4,500 $2,000 $6,000
Third $5,500 $2,000 $7,000
Fourth $5,500 $2,000 $7,000
Fifth-Year Seniors $5,500 $2,000 $7,000
Graduate Students $8,500 n/a $12,000

Applying for a Direct Loan

To apply for a direct loan at Harvey Mudd College, you must complete the Free Application for Federal Student Aid (FAFSA), as well as complete a direct loan entrance counseling session, and submit a completed electronic master promissory note (EMPN). These must be completed prior to receiving your first loan disbursement and before funds can be credited to your student account.

  1. Complete the direct loan entrance counseling at StudentLoans.gov. You will need to sign in to StudentLoans.gov using your social security number, last name (first two letters), date of birth (month/day/year), and FAFSA PIN.
  2. Complete the direct loan electronic master promissory note (EMPN) at StudentLoans.gov.

Because subsequent loans will be processed using the same EMPN you initially signed online, you will not need to submit another application for future direct loans that you borrow while attending Harvey Mudd College. You will be able to accept or decline subsequent direct loan offers by signing your financial aid award letter or by emailing us at financial_aid@hmc.edu using your Harvey Mudd email address.

Direct Loan Exit Counseling

If you have previously borrowed through the Federal Direct Loans Program and will be graduating, taking a leave of absence or withdrawing from Harvey Mudd College, federal regulations require you to complete the Exit Counseling Session.