US Federal Loans

US Title IV Federal Direct Loans

ACG participates in the U.S. Title IV Loan Program for Federal Direct Subsidized/Unsubsidized Loans and Parent PLUS loans. If you are a United States citizen, or an eligible non-citizen, enrolled in an undergraduate or an approved graduate program at The American College of Greece you may be eligible to borrow U.S. Federal Direct Loans.

Please note: Current US government legislation prohibits US citizens enrolled in colleges or universities outside the United States from receiving Pell Grants, SEOG, Perkins Loans, or Federal Work Study funds, even though they may be eligible for such assistance. Further, ACG is not authorized to administer Federal Student Aid to visiting students. Visiting student may, however transfer any existing aid from their home institution in the US to ACG.

How to apply? Fill out a FAFSA.

To apply for Federal Direct Loans (Subsidized, Unsubsidized and/or PLUS loans), you must complete and submit the Free Application for Federal Student Aid (FAFSA) and include ACG’s School Code, G416800, on the application. A new FAFSA application must be submitted for each year of study before any Federal Student Aid can be awarded.

Once the FAFSA has been submitted online and processed, the information from the student’s application will be shared with The American College of Greece. ACG will provide the student with an award letter, which will outline the types of aid the student is eligible to receive. The student is advised to read carefully and understand the award letter. If the student wishes to accept the funds he or she must complete, sign, and send back the original letter to ACG.

The student must then complete a Master Promissory Note (MPN). The MPN is a legally binding agreement to repay student loans to the US Department of Education. A signed MPN must be on file before receiving federal financial aid. The Master Promissory Note may be completed online at StudentLoans.gov. First time borrowers at ACG must also complete an entrance counseling. A link to the entrance counseling can be found on the direct loan site.

Federal Direct Loan Options

Subsidized: For students who qualify for subsidized direct loans, the government pays the interest on the loan until the student enters repayment after graduation or withdrawal.

Unsubsidized: Students who receive an unsubsidized direct loan are responsible for the interest that accrues during school, and during grace and deferment periods. If not paid while the student is in school, interest is capitalized (added to the loan balance) at the end of the borrower’s grace period. The interest on this loan is minimal when compared to private loans.

Parent PLUS Loan: Parent PLUS Loans for Undergraduate Students (PLUS) are available to parents of dependent undergraduate student to help finance their student’s education. Parents may borrow up to the official Cost of Attendance, minus the amount of any other financial aid received. A credit check is required for the PLUS loan. Parent PLUS loans have competitive loan fees, interest rates, and repayment options.

Parents who are eligible, and wish to borrow Federal Direct Parent PLUS loans, must also complete an award letter, Master Promissory Note, and have a credit check approved by the Federal Direct Loan Program each academic year.

Generally, students who are under 24 years of age are classified as “dependent students”, students who are 24 years of age and older are classified as “independent students”. See the chart below of how that may affects your award.

DIRECT STAFFORD LOAN LIMITS (Subsidized and Unsubsidized) FOR UNDERGRADUATE AND GRADUATE STUDENTS

Year Dependent Students (except students whose parents are unable to obtain PLUS Loans) Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit $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.
Second-Year Undergraduate Annual Loan Limit $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.
Third-Year and Beyond  Undergraduate Annual Loan Limit $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 or Professional Students Annual Loan Limit Not Applicable (all graduate and professional students are considered independent) $20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit $31,000—No more than $23,000 of this amount may be in subsidized loans. $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

$138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

Federal Direct Loan Eligibility

The American College of Greece will determine a student’s Federal Direct Loan eligibility automatically, if a FAFSA is completed with ACG’s school code, G41680. Each eligible student will receive a Financial Aid Package from ACG containing the amount of ACG merit aid received and their Direct Subsidized/Unsubsidized and Parent PLUS loan eligibility. Detailed instructions for borrowing federal direct loans are also included.

US Federal Aid recipients who complete coursework online or in the US risk losing federal loan eligibility upon returning to ACG. This affects students who spend a term(s) at a US university or study abroad with a program hosted by a US institution or study abroad organization. This also affects students via distance programs, including online and remote learning formats.

According to federal regulations (CFR 668.34), students must maintain Satisfactory Academic Progress (SAP) in order to be eligible for any Federal Student Aid (Title IV). For more information on ACG’s Satisfactory Academic Progress policies, please click here.

For more information, contact [email protected]