Financial Aid Loans

GC announces entry into the William D. Ford Federal Direct Stafford Loan program: 

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. With Direct Loans, you borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center-for everything related to the repayment of your loans, even if you receive Direct Loans at different schools. There are three types of Direct Stafford Loans: Direct Subsidized, Direct Unsubsidized and Direct PLUS.


Direct Subsidized Loans

sitting-at-a-table.jpgThis is a need based loan program that provides low interest loans to students who are attending GC at least half-time. If you are eligible for a Direct Stafford Subsidized loan, the federal government pays the interest on the loan while you are enrolled in school at least half-time (6+ credit hours per semester), in deferment and during grace periods. Eligible students will see available subsidized loan amounts listed along with Pell and other grants in their award package each year. See instructions below on how to complete the loan process. 

The interest rate for the 2010-2011 year is 5.6% 

Annual loan limits are: 


  • $3,500 - First Year Students
  • $4,500 - Second Year Students


Loan Process (to be completed each academic year):

  1. Complete FAFSA
  2. Turn in any requested documents (check Campus Connect)
  3. Office of Financial Aid packages subsidized loan award
  4. Complete Entrance Counseling
  5. Electronically sign the Master Promissory Note (MPN)
  6. Complete your Exit Counseling before your last disbursement


Direct Unsubsidized Loans 


advisor-2.jpgThis is a non-need based program that provides low-interest loans to students who are attending GC at least half-time. This loan is available to students who do not demonstrate financial need. The student is responsible for the interest that accrues on the Direct Stafford Unsubsidized loan during school, deferment and grace periods. So, if payments on interest are not made during school or paid off once the student graduates, the interest will be capitalized and added to the total loan amount to be repaid. 


The interest rate is fixed at 6.8% 


Annual loan limits are: 


  • $2000 - Dependent students
  • $6000 - Independent students


Beginning fall 2010 subsidized loans will be included in your initial eligibility package along with Pell and other grant funds. If you decide you want to also take out an unsubsidized loan you will need to follow the instructions below.


Unsubsidized Loan Process:

  1. Complete the Unsubsidized Loan Application available here
  2. Complete Entrance Counseling
  3. Electronically sign the Master Promissory Note (MPN)
  4. Complete your Exit Counseling before your last disbursement 

** Entrance & Exit counseling completed each year will count for both the subsidized & unsubsidized loan awards. You may have to sign an additional Master Promissory Note**

Beginning fall 2010 loans will come in two disbursements each semester. If you are awarded a fall/spring loan you will have a total of four disbursements.



Entrance Counseling & Exit Counseling

Entrance and Exit Counseling must be completed each academic year. 


Entrance Counseling must be completed every year before the first disbursement may be made available to the student. You can complete this process on-line through the Direct Loan website

Exit Counseling is required and must be completed online through Direct Loan website for the following situations: 

  1. Prior to receiving the 2nd disbursement
  2. 30 days prior to graduation
  3. Within 30 days of completely withdrawing during any semester; or
  4. Within 30 days of dropping below half time enrollment (6hrs) within any semester 


For questions or issues concerning your Direct Loan

Direct Loan Customer Service number: 800/848-0979


Who is eligible?

A loan recipient must be enrolled at least half-time and be making satisfactory academic progress

NOTE - if you are in default on a student loan or owe a repayment to another school you will not be eligible for loans or any other federal aid until it has been repaid or the Department of Education can provide a letter stating you are eligible for Title IV federal aid.



Award Changes

Grayson College reserves the right to review, reduce or cancel awards at any time because of changes in aid availability and/or changes in the student's eligibility. Students receiving financial aid are responsible for notifying the financial aid office of any additional aid received such as an additional scholarship and/or additional funding.


*Please note, if you are receiving veteran's education benefits please be aware that your loan(s) may be reduced or cancelled. For more information please talk with your VA representative or contact the Office of Financial Aid.*



Loan Awards & Disbursements

phone.jpgFederal regulations require multiple disbursements on Direct Stafford and Parent PLUS loans. All loans will be disbursed in two disbursements each semester for a total of four disbursements if the loan is a fall & spring loan. 

The particular dates of disbursement will be determined each academic year and posted to our website each academic year. 

Students will receive a Disbursement Notification Letter from Grayson College within 14 days after funds have been electronically received by the college. 

Students and/or parents have the right to cancel all or a portion of the loan and have proceeds returned to the lender. Students that wish to cancel all or a portion of their loan must provide a written statement to the Office of Financial Aid no later than 14 days after the date listed on your disbursement letter. The statement should include the student's name, social security number and the amount of the loan they wish to cancel. The student may also send this information via email to


When are loans paid back?

Repayment for Direct Stafford loans begins six (6) months after the student graduates, ceases at least half-time enrollment (enrolled in 5 credit hours or less) or completely withdraws. Note, only one grace period is given per loan - once it has been used you do not receive another.


Do I have to borrow the maximum amount?

No: It is important for you to determine the exact amount of money that you need to borrow. You should only borrow as much as you need. Remember, you will have to pay these loans back beginning six (6) months after you graduate, cease at least half-time enrollment or completely withdraw.


What is the difference between subsidized and unsubsidized loans?

The Federal Subsidized loan is need based and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Federal Unsubsidized loan is not need based and the borrower is responsible for paying the interest that accrues during these loan periods.


What is a Federal Parent PLUS Loan?

The Federal Parent PLUS Loan is a fixed interest loan created by the federal government to help creditworthy parents pay for their dependent student's education beyond high school. The amount a parent can borrow for a student cannot exceed the student's total cost of attendance. Repayment begins 60 days after the loan is fully disbursed. Interested students must complete their financial aid file, choose a lender and complete the Parent PLUS portion of the loan application.



Important Websites

National Student Loan Data System (NSLDS): Click here to view your loan information. 

page_white_acrobat.png Alternative Loans

page_white_acrobat.png Loan Disclosure

 Loan Policy & Procedure

page_world.png Student Aid website  

page_world.png Teacher Loan Forgiveness

page_world.png Texas Student Loan Guarantee

Click here to learn how to manage your credit and debt 

Click here to view Estimated Repayment Calculator


Helpful links for money management: 

page_white_acrobat.png Money Management Tips



If you have any questions, please contact the Office of Financial Aid 903/463-8794.