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

For loans first disbursed on or after 7/1/18, the interest rate for Undergraduate Subsidized Direct Loans is 5.05% fixed; the interest rate for Undergraduate Unsubsidized Direct Loans is 5.05% fixed.  The interest rate for the Unsubsidized Graduate Direct Loans is 6.6% fixed.  A 1.066% origination fee is deducted by the government from each loan disbursement.   After October 1st, 2018, the origination fee is TBD. Note: Interest rates and fees are set by the Federal Office of Management and Budget for each academic year on June 30th.

Master Promissory Note (MPN) and Entrance Counseling

If you are a first time Federal Direct Loan borrower you must sign a Master Promissory Note and complete an Entrance Counseling tutorial/quiz.

  1. The Loan Agreement for a Subsidized/Unsubsidized Loan(MPN) can be completed at
  2. The Entrance Counseling tutorial/quiz can be completed at

Additional electronic loan services for students include:

Federal Direct Loan Consolidation—Simplify your loan repayments, secure a non-variable interest rate, find out if loan consolidation is for you.

Federal Direct Loan Exit Counseling—All federal loan borrowers are required to complete an Exit Counseling session 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 Federal Direct Loans as long as the following conditions are met:

  • You are matriculated in a graduate program
  • You are registered for at least 6 credit hours per semester
  • You have filed a current FAFSA
  • You have completed Direct Loan and/or Grad PLUS Entrance counseling
  • You have completed a Master Promissory Note
  • You have Federal Direct loan eligibility remaining

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   $8,500
  • 12 + credits per semester  $ 10,250 ( maximum loan amount per term)

Students enrolled in only one or two semesters per academic year, may request additional Federal Direct Loans  (up to $10,250) by mailing or faxing a supplemental loan request form to the financial aid office.  Additional loan amounts are subject to federal guidelines and may not exceed your cost of attendance.  The Supplemental Direct Loan Request Form may be downloaded from aid forms and faxed to 585-389-2317 or emailed to

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).  Students enrolled in three terms per academic year are ineligible to request additional federal Direct Loans by submitting a supplemental loan request form because you have already been awarded the maximum annual amount of $20,500.  If you need to borrow additional loans to cover your educational expenses, you may borrow a Direct Graduate PLUS loan up to your cost of attendance.  You may apply for a Graduate PLUS loan at

  • 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