Federal Direct Subsidized Loan

The Direct Subsidized loan enables undergraduate students to borrow money directly from the government. It is a fixed-interest-rate loan at 6.8% for undergraduate students. There is a six-month grace period from the time the student is no longer enrolled half-time until the student must start making payments. The U.S. Department of Education subsidizes or pays the loan’s interest while the student is enrolled at least half-time.

Eligibility for the Federal Direct Subsidized Loan is based strictly on need as determined by the financial information provided by the student and/or parent on the FAFSA. Total financial aid, including scholarships, grants, loans, and work-study cannot exceed documented educational need. The Master Promissory Note (MPN) is available online at www.studentloans.gov and must be certified by the Financial Aid Office while the student is enrolled. The Master Promissory Note only needs to be completed once. You can borrow additional loans on a single MPN for up to ten years.

Students requesting the Federal Direct Subsidized Loan for the first time at Adventist University of Health Sciences must complete an Undergraduate Entrance Loan Counseling session online at www.studentloans.gov before disbursement of student loans is made. Students withdrawing from school, or who drop to less than half-time enrollment, as well as those who graduate, must complete an Undergraduate Exit Loan Counseling session online at www.studentloans.gov in which important payback information concerning their loan is covered.

A student will receive a disclosure statement from the Department of Education that will give specific information about any loan that the school plans to disburse under his or her Master Promissory Note (MPN), including the loan amount, fees, and the expected disbursement dates and amounts.

To see when the dollars have been credited, a student may look online at My.adu.edu, Student Account. A student will also receive notice in writing each time Adventist University disperses part of his or her loan funds. In addition, the University will provide information on how to cancel all or part of a student's disbursement, should he or she find the funds no longer necessary.

Students are not eligible for the Federal Direct Subsidized Loan while on provisional acceptance status. Students who are initially accepted on probation status are not eligible their first trimester and may become eligible during their second trimester if they have a 2.00 cumulative GPA and have successfully completed 67% of the credits attempted. In most cases, the loan will be retroactive to the beginning of the first trimester of the current award year.

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan has the same requirements and loan limits as the Federal Direct Subsidized Loan program, except it is not based on need, the interest rate is 6.8%, and the interest is the responsibility of the borrower. Students may pay the interest while they are in school, or they may have it capitalized (added to the principal balance of the loan).

All financial aid cannot exceed the cost of attendance.

To see when the dollars have been credited, a student may look online at my.adu.edu, Student Account.  A student will also receive notice in writing each time Adventist University disburses part of his or her loan funds. In addition, the University will provide information on how to cancel all or part of a student's disbursement, should he or she find the funds no longer necessary.

Students are not eligible for Federal Direct Unsubsidized Loans while on provisional acceptance status. Students who are initially accepted on probation status are not eligible their first trimester and may become eligible during their second trimester if they have a 2.00 cumulative GPA and have successfully completed 67% of the credits attempted. In most cases, the loan will be retroactive to the beginning of the first trimester of the current award year.