Tuition & Aid

Federal Direct Loan Program

Undergraduate and Graduate

Nazareth College participates in the William D. Ford Federal Direct Student Loan Program. These loans are provided by the federal government and require you to first file a Free Application for Federal Student Aid (FAFSA).  The Direct Loan Program provides a simple way to obtain and repay student loans; the U.S. Department of Education is the lender and the loan funds are sent directly to Nazareth College.

If you borrowed federal loans at a previous institution, you can combine those loans with the Federal Direct Loans under the Direct Consolidation Loan Program.  Your academic year level and dependency status determines the maximum annual amount you may be eligible to borrow; the federal government also monitors loan aggregates for both undergraduate and graduate students.

What Kinds of Direct Loans are Available?

  • Direct Subsidized Loans are loans for students with financial need, as determined by federal regulations. Generally, there is no interest charged while you are in school at least half-time, during your grace period and during deferment periods (certain restrictions apply). For first-time borrowers beginning July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans.  In general, you may not receive Direct Subsidized Loans for more than 150% of the published program length of your program.
  • Direct Unsubsidized Loans are loans for students that are not based on financial need. Interest is charged during all periods. The interest on your loan accumulates while you are in school. You may choose to either pay the interest or to defer the interest payment, in which case it will be capitalized.
Annual Maximum Limit (Federal Direct - Sub & Unsub)  
  Dependent Student Independent Student
Year 1 $5,500 (No more than $3,500 of this amount may be in subsidized loans) $9,500 (No more than $3,500 of this amount may be in subsidized loans)
Year 2 $6,500 (No more than $4,500 of this amount may be in subsidized loans) $10,500 (No more than $4,500 of this amount may be in subsidized loans)
Years 3, 4, & 5 $7,500 (No more than $5,500 of this amount may be in subsidized loans) $12,500 (No more than $5,500 of this amount may be in subsidized loans)
Graduate/Professional n/a $20,500 per academic year
Aggregate Limits  
  Dependent Student Independent Student
Dependent Undergraduate $31,000 (No more than $23,000 of this amount may be in subsidized loans) n/a
Independent Undergraduate n/a $57,500 (No more than $23,000 of this amount may be in subsidized loans)
Graduate n/a $138,500 (No more than $65,500 of this amount may be in subsidized loans)

Interest Rates and Fees

If you receive a federal student loan, you will be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay. A federal student loan is a loan funded by the federal government to help pay for your education. A federal student loan is borrowed money you must repay with interest. Interest is a loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan. Please see additional federal student loan information.

Master Promissory Note (MPN) and Entrance Counseling

If you intend to borrow a federal student Subsidized or Unsubsidized Direct Loan you must complete the following two required federal loan documents:

  1. Master Promissory Note (MPN); required to borrow a federal loan. Legal document in which you promise to repay your loan(s) and any accrued interest and fees to the US Department of Education. It also explains the terms and conditions of your loans.
  2. Entrance Counseling; required to borrow a student loan. The counseling ensures that you understand the responsibilities and obligations you are assuming.

Exit Counseling

All federal loan borrowers are required to complete Exit Counseling prior to graduation, leave of absence, or withdrawal from school. The purpose of the exit counseling is to inform borrowers of the provisions of the loan(s) as well as their rights and responsibilities now that the loan(s) will be in another status.

Students who have additional questions about the Exit Counseling process should contact Office of Financial Aid at 585-389-2310 or

Graduate Student Loan Eligibility

Graduate students are eligible to borrow Graduate Plus Federal Direct Loans as long as the following conditions are met:

Upon receipt of a current FAFSA, the Nazareth College Financial Aid Office will automatically award you the following unsubsidized Direct Loan amounts if you are enrolled in one or two semesters per academic year:

  • 6 credits per semester  $6,000
  • 9 + credits per semester  $10,250 ( maximum loan amount per term)

 NOTE:  For students enrolled in all three semesters (summer, fall, and spring) per academic year, the maximum loan per term is $6,834 (summer), $6,833 (fall), and $6,833 (spring).  If you need to borrow additional loans to cover your educational expenses, you may apply for a Direct Graduate PLUS loan up to your cost of attendance.

  • If you want to reject the entire loan, you may reject the entire loan amount on NazNet, email the financial aid office at, or call the financial aid office at (585) 389-2310.
  • If you want to reject a portion of the loan, you must contact the financial aid office at (585) 389-2310 or