The Direct Student Loan FAQs
THE
LOAN APPLICATION
Whose credit history is checked for loan approval, the cosigner's or
the borrower's?
Both credit histories are checked.
What if I (the student-borrower) have a minimal credit history or no
credit at all?
With minimal or no credit history, you most likely will require a cosigner to
gain approval for a loan.
If I obtained a loan last year, do I have to reapply again this year?
Yes. You must reapply each academic year, but the loan can span 12 months of
consecutive attendance.
If I continue to get loans each year, are the loan amounts added to the
first loan? Or do I have a separate loan for each year?
You will have a separate loan for each year, but for your convenience you will
receive one monthly bill during repayment for all your private student loans
borrowed through this program.
Can I add any costs or fees to the loan amount rather than having them
deducted from the proceeds?
Yes. The loan fees will be included in the amount financed.
If my personal information, for example, my address or telephone
number, changes after I submit an application, what should I do?
Application information cannot be changed once submitted, but your personal
account information can be changed at any time in My
Account or by contacting Customer
Support.
If the amount that I want to borrow changes after I submit the
application, what should I do?
Call Customer Support at 866-682-4812.
When is the best time to apply for a loan?
You should apply for a loan as soon as you have received your acceptance
letter from the school which you plan to attend.
Is the information I give on my online application protected?
We employ a multi-layered approach to ensuring the security of your personal
information. Click here to read the privacy
policy. Although these security measures are in place, if you would rather
not handle financial transactions online, you can submit a paper version of
the Direct Student Loan application form or call
to apply over the phone.
Should I apply with a cosigner?
We encourage prospective customers to apply with a creditworthy cosigner to
increase their chances of approval and increase their chances of obtaining a
lower interest rate and/or loan fee.
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LOAN
ELIGIBILITY
How old do I have to be to apply or be eligible for a loan?
To be eligible for a private student loan you must be at least 18 years of age
(19 in Nebraska and Alabama, 21 in Puerto Rico & Mississippi.) Mississippi
residents under the age of 21 may borrow with written consent from a parent or
guardian.
Is it possible to borrow funds for an entire year rather than one
semester at a time? If so, how are the funds disbursed?
Yes, funds can be borrowed for up to 12 months of attendance. The disbursement
is made by check and is sent to the loan carrier (the applicant with the
stronger credit profile). The check will be made payable to the borrower (and
co-payable to the cosigner, if applicable). It is disbursed no sooner than 21
days from the enrollment period start date.
As an applicant, do I need to have a Social Security number to apply
for a loan?
The borrower and any cosigner are required to supply a Social Security number.
Can I apply for a loan if I am a resident alien?
Yes, certain non-citizens are eligible to apply, generally those who hold a
valid Proof of Residency (I-151 or I-551) card.
Do I need to be accepted to a school before I can get a loan?
You must be enrolled at an eligible institution to be approved for and receive
a loan. Enrollment is verified after you submit an application, as part of the
loan approval process.
How is enrollment verified?
Enrollment verification documentation must be provided by the borrower
(student). Acceptable forms for enrollment verification include a tuition
bill, an acceptance letter, a letter from the registrar's office, official
school transcripts or a semester or term schedule.
How many credits do I need per semester to be considered at least a
half-time student?
You must be enrolled on at least a half-time status at an eligible
institution. Check your school's catalog or with the registrar's office for
these requirements. We will verify half-time enrollment through the enrollment
verification process using the documentation submitted by the borrower.
Does the number of credits I am taking influence the amount I can
borrow?
For a private undergraduate or graduate loan, you must carry at least a
half-time credit load.
What if my enrollment status changes after I have applied for a loan?
After I have received the disbursement?
- If your enrollment status changes to that of less than the required
amount before the loan is disbursed, the loan application is cancelled.
- If your enrollment status changes after the disbursement occurs, the
loan is not cancelled and you are responsible for repayment.
- Loan repayment begins six months after you cease to be enrolled on at
least a half-time basis.
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APPLICATION
APPROVAL
What information about the applicant and the cosigner is checked for
conditional approval?
When you submit the application form, CampusDoor, on our behalf, requests
credit information about the borrower (and any cosigner) from one of the three
major credit bureaus.
How long does it take to get the loan check after I am approved?
This depends on how quickly the borrower and cosigner sign and return their
Loan Documents and any other requested information and is based on the start
of the enrollment period. The disbursement is made by check made payable to
the borrower (and co-payable to the cosigner, if applicable) and can be
disbursed within 48 hours of final approval. However, the check will not be
disbursed sooner than 21 days from the enrollment period start date.
Can I get a loan regardless of which school/college/university I
attend?
For our private undergraduate and graduate loans, the borrower must attend an
eligible institution.
If an applicant receives grants or scholarships, does this affect the
amount that can be borrowed?
No. The amount that each borrower can borrow is based in part on the maximum
Cost of Attendance as reported by your school to the Department of Education
for the previous year.
If the borrower has other loans, does this affect the amount that can
be borrowed?
The amount that each borrower can borrow through us is based in part on the
maximum Cost of Attendance as reported by your school to the Department of
Education for the previous year. A borrower can have several Direct Student Loans
up to the calculated Total Cost of Attendance. Please note: a borrower
cannot take a School-Certified Student Loan and a Direct Student Loan in the
same academic year.
Is there any other paperwork that I need to complete after my loan is
approved?
After your loan approval, you will need to sign, date and return the
Promissory Note, provide verification of enrollment, and remit any other
information that may be requested including but not limited to documentation
to verify your identify and/or documentation to verify your income.
If I am conditionally approved, will I automatically be approved for a
loan?
Not necessarily, however, most applicants who are conditionally approved will
be approved for a loan provided the student's enrollment is verified for at
least a half-time basis and all necessary documents are returned.
If your application is not approved, you will receive a letter via your
preferred choice of communication (mail or email) explaining why. At that time
you may supply additional information and reapply.
Can I reapply for a loan with additional information if I am refused a
loan?
Yes. You can reapply at any time.
What are the reasons that my loan application may not be approved?
Loan applications are not approved if applicants fail to meet the Lender's
underwriting criteria. To be approved for a private student loan, applicants
must:
- Meet credit requirements (either alone as borrower or with a cosigner)
and other underwriting criteria including income and debt-to-income
requirements.
- Borrower must be a student enrolled in or attending an eligible
institution (on at least a half-time basis, for a private undergraduate or
graduate loan).
- Provide documentation verifying income and enrollment.
- Be a U.S. citizen or give proof of eligibility as a non-citizen,
typically verified with a Proof of Residency (Form I-151 or I-551) card.
How is income verified?
Income verification is needed for both the borrower and cosigner, if
applicable.
Acceptable forms include:
- A pay-stub dated within the last 60 days.
- Your most recent W-2 form
- Two years of 1040 tax forms with all schedules (if self-employed)
- And other forms as required.
How is debt-to-income verified?
An acceptable debt-to-income ratio is required to be approved for this loan.
Verification is performed utilizing documentation provided by the applicant as
well as use of independent verification methods. If further verification is
required, the borrower and/or cosigner will be contacted.
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LOAN
AMOUNTS, FEES, INTEREST
How much can I borrow?
This amount is determined by the costs associated with attending the school
you have selected. For a Direct Student Loan:
- The minimum loan amount is $2,500.
- The maximum yearly loan amount is determined by your school's Cost of
Education.
- The lifetime maximum aggregate loan amount per borrower is $250,000 for
our private student loans. This aggregate includes the School-Certified
Student Loan, the Direct Student Loan, and any loan fees and incidental
loans.
Does it cost anything for me to apply for a loan?
No.
What is the Index?
"Index" means the highest "Prime Rate" reported in the
"Money Rates" column in the "Credit Market" section of The
Wall Street Journal (Eastern Edition) five (5) Business Days before the
beginning of a calendar quarter, rounded up or down to the nearest one
hundredth of one percent (0.01%). However, if the "Prime Rate" is
not reported in The Wall Street Journal (Eastern Edition) five (5)
Business Days before the beginning of a calendar quarter, the Lender will use
the highest immediately preceding reported "Prime Rate" in The
Wall Street Journal (Eastern Edition) as of that date, rounded up or down
to the nearest one hundredth of one percent (0.01%). The "Prime
Rate" is only a pricing index and is not necessarily the lowest rate at
which loans are made by Lender. If the "Index" described here is no
longer available, the Lender will choose a comparable substitute index, and
that substitute index will then be considered the "Index".
Are there any loan fees that I need to pay?
A loan fee may be assessed on approved loans based on the credit profile of
the applicant and cosigner (if applicable) and other underwriting criteria.
These fees are included in the total loan amount.
How much are the fees?
The loan fees range from 0% to 9% depending on underwriting criteria. For more
information, check out our Rates
and Fees page.
Is there a maximum amount a borrower can borrow?
We will allow each borrower to borrow and each cosigner to cosign up to a
lifetime aggregate maximum of $250,000.
Does it cost anything for me to be pre-approved?
No.
What happens if I no longer want the loan?
At any time before funds are disbursed you can contact the
Student Loan Support Center to cancel your application.
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DISBURSEMENT
OF FUNDS
If I am approved for a Direct Student Loan, how do I receive the funds?
The disbursement is made by check made out to the borrower (and co-payable to
the cosigner, if applicable) and may be mailed to the loan carrier (the
applicant with the strongest credit profile) within 48 hours of final approval
(but no sooner than 21 days from the enrollment period start date).
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REPAYING
LOANS
Does the organization sell its loans and if so, how often, to whom, and
with what consequences?
CampusDoor owns the relationship with each and every one of our borrowers and
that relationship will continue through the life of the loan, either directly
with CampusDoor personnel or with those service providers chosen by CampusDoor
to assist us in providing top-tier service to our customers. Interest rate
terms, customer service and borrower benefits will remain as offered for the
life of the loan.
How soon do I have to start paying on my loans after I graduate? What
if I don't graduate?
After you graduate, there is a 12-month grace period before you need to start
repaying a loan. There is a six-month grace period if you leave school but do
not graduate. However, repayment always begins 60 months from the first
disbursement date.
If I want to go to graduate school and I have undergraduate loans, are
the undergraduate loans deferred until I received my graduate degree?
Yes, you can defer your loan repayment while you are at least a half-time
student as long as you enroll in graduate school within six months of
graduation. Repayment always begins five years from the first disbursement
date. A borrower can submit a deferment request form to the servicer.
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