Beginning July 1, 2013, new student borrowers are limited in the amount of Federal Direct Subsidized Loans they can receive. Subsidized loans are permanently limited to 150% of the length of a student’s academic program.

To be eligible for student or parent loans, you must first complete the Free Application for Federal Student Aid (FAFSA). After completing the FAFSA and turning in all the necessary documents, you will receive an award letter stating the Direct loan type and amount you are eligible for.

Initial financial aid awards are based on full-time enrollment. If you are not enrolled full time at the end of drop/add, your award will be adjusted. If you are enrolled less than half time, you financial aid will be canceled.

Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans)
First Year - $5,500 - No more than $3,500 of this amount may be in subsidized loans.
Second Year - $6,500 - No more than $4,500 of this amount may be in subsidized loans.
Third and Beyond (each year) - $7,500 - No more than $5,500 of this amount may be in subsidized loans.

Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans)
First Year - $9,500 - No more than $3,500 of this amount may be in subsidized loans.
Second Year - $10,500 - No more than $4,500 of this amount may be in subsidized loans.
Third and Beyond (each year) - $12,500 - No more than $5,500 of this amount may be in subsidized loans.

Graduate Students
Graduate students are generally allowed to borrow up to $20,500 of Direct Unsubsidized Loans each academic year. The amount a graduate student is allowed to borrow can not exceed Salem’s graduate cost of attendance.

Parent Plus Loans
Parents of dependent students and graduate students may apply for a Federal Direct PLUS Loan. PLUS loans are federal loans that parents of dependent undergraduate students or graduate students can use to supplement other financial aid, such as the Federal Direct Loan. The student must first complete the Free Application for Federal Student Aid (FAFSA). The amount of the Federal Direct PLUS Loan and existing financial aid cannot exceed Salem’s cost of attendance.

Entrance Counseling Addendum for New Borrowers
New regulations are in place regarding student loans. If you are a new borrower (first disbursement on or after July 1, 2013) and have already completed your entrance counseling, please review the addendum that is now a part of the counseling.

If you are a new borrower and have not yet completed your entrance counseling, please complete it online.

Exit Counseling - Graduating from Salem or Not Enrolled At Least Half-Time
Federal regulations require students complete exit counseling for their Stafford and/or Direct loans when they have graduated or are no longer enrolled at least half-time. Exit Counseling can be done online at www.studentloans.gov (then choose Exit Counseling). More information can be found in the Exit Counseling Guide provided by the US Department of Education. If you would like a paper copy of this guide, please contact our office.

Loan Repayment Calculators
The following website offers repayment calculators as well as budget information to help determine what you can afford to borrow in student loans.

Department of Education - Calculators