Lesson 1: Introduction to Direct Loans
- Identify the different loan programs and characteristics of each;
- Understand the purpose of origination fees;
- Understand the loan application process; and
- Understand how financial aid administrators may utilize professional judgment in the Direct Loan application process.
Lesson 2: Factors for Calculating Loan Amounts
- Identify the factors in calculating loan amounts;
- Understand how the loan period is identified in standard, nonstandard, and nonterm programs; and
- Understand the role of the expected family contribution and estimated financial assistance in the calculation of loan amounts.
Lesson 3: Direct Loan Amounts and Limits
- Know the annual and aggregate Direct Loan limits and how they are applied to the various student and parent borrowers;
- Understand student enrollment patterns and the rules regarding the frequency with which students may borrow annual loan limits for Direct Loans; and
- Understand the rules for Direct Loan proration and when they are applied.
Lesson 4: Calculating Direct Loan Eligibility
- Know how to calculate a student’s or parent’s Direct Loan eligibility;
- Understand the frequency of annual borrowing limits; and
- Know how to prorate a student’s loan eligibility.
Lesson 5: Loan Counseling
- Understand when loan counseling is required;
- Identify who must complete entrance and exit counseling;
- Identify the various counseling formats and documentation requirements; and
- Understand the required content of loan counseling and its purpose.
Lesson 6: Direct Loan & FFEL Repayment Features
- Identify and understand the major repayment features of Direct and FFEL loans.
Lesson 7: Direct Loan & FFEL Repayment Plans
- Know which repayment plans are available to borrowers under the Direct Loan and FFEL programs;
- Understand borrower choice and restrictions among available repayment plans;
- Understand the monthly payment amounts, repayment term lengths, and special conditions associated with each of the repayment plans; and
- Know that repayment plan counseling tools and calculators are available to borrowers and where to find them.