Student Loan Information

2012-13 UACCB Direct Student Loan Information

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. For more detailed information on the Direct Loan program, please visit

If you would like to be processed for a student loan, you must adhere to the following policies:

  1. You must successfully complete (2.0 GPA) 12 credit hours to be eligible for student loans.
  2. You must successfully complete Reading Improvement, Basic Writing, and Beginning Algebra, if required, to be eligible for student loans.
  3. The Direct Loan is a loan and must be repaid.
  4. You must be enrolled for at least 6 credits per term throughout the entire loan period.
  5. All borrowers must complete on-line Entrance Counseling.
  6. You are required to electronically complete and sign your Master Promissory Note (MPN).
  7. There is a 30-day delayed disbursement period for all first-time borrowers at UACCB.
  8. All loan funds are distributed in two disbursements per semester.

Financial Literacy Course

Student Loan Repayment Interest Rate Tables

Stafford Student Loans

Every academic year each student MUST COMPLETE the Free Application for Federal Student Aid (FAFSA) to determine eligibility for Stafford loans. Stafford Loan Forms

2012-2013 Annual Stafford Student Loan Limits

First Year(0-30 Hours)
Subsidized $3,500
Unsubsidized $6,000 ($2000 for dependent students)
Total $9,500

Second Year(31+ Hours)
Subsidized $4,500
Unsubsidized $4,000 ($2000 for dependent students)
Total $8,500

What are Stafford Student Loans?

The Federal Stafford Loan is designed to help students pay for their education. There are two types of Stafford Loans - subsidized and unsubsidized. Eligibility for subsidized loans is based on financial need as determined by federal guidelines. A loan is called "subsidized" because the government pays the interest for the student during:

  • At least half-time enrollment in school (6 or more hours)
  • The six-month grace period after the student ceases attendance on at least a half-time basis.

Unsubsidized Stafford loans are available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues. You may choose to pay the interest portion while in school, which would keep your loan balance at the original principal balance. If you choose to defer such payments, the interest will be capitalized, resulting in an increase in both total debt and the amount of monthly payments.

Applying for a Direct Loans

Step 1 —Apply for Financial Aid at You apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). The information on your FAFSA is transmitted to UACCB, and we will use the information to assess your financial need. UACCB will award your financial aid, including Direct Loans as part of your aid package to help you pay the costs of going to college. At UACCB, we take our obligation to provide applicants with information about borrowing a student loan seriously. Applicants are educated about borrowing a loan and are expected to read all the materials and borrow wisely. This is a loan and must be paid back. The loan is to be used for educational-related expenses at UACCB.

Step 2 —Complete Direct Loan Entrance Counseling. Go to and click on “Entrance Counseling”. Follow the counseling session links until you complete a quiz. Once the quiz is completed, you must sign in using your PIN (the same PIN used to complete the FAFSA). Be sure to send your counseling session to UACCB as instructed. Entrance counseling must be completed for all Direct Loan borrowers. You must complete entrance counseling before your school can make the first disbursement of your Direct loan. If you need help completing this step, please call (870) 612-2015.

Step 3 —Complete a Direct Loan Master Promissory Note. Go to The Master Promissory Note (MPN) must be completed to take out a Direct Loan for the first time. To complete an MPN online, you will be required to use your Department of Education-issued PIN that you used for the FAFSA. Even if you’ve had a loan at UACCB before, you must complete a new (MPN). You can complete the MPN online at the Direct Loans MPN website. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). In most cases, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive. If you need help completing this step, please call (870) 612-2015.

Step 4 —Accept your award in WebAdvisor. Your student loan funds will not be transmitted to your student account until you have accepted the award.

About Direct Loans

Direct loans are issued by the federal government. The loan is serviced by the Federal Direct Loan Servicing Center ( There are no banks or lending institutions. There are two types of Direct Student Loans: Subsidized loans are interest free while in school as a half-time student. Unsubsidized loans are not interest free. Interest is being charged while you are in school. At UACCB, we will always process a subsidized loan first. Repayment of principal and interest on the loan will begin six (6) months after the student ceases enrollment as at least a half-time student (6 credit hours or more). The Direct Loan amount you request may not be the amount you are eligible to receive. While the loans are not based on your ability to repay, in some cases, the applicant must demonstrate financial need or may only be eligible to borrow enough to pay for tuition, fees and books. UACCB determines the amount of eligibility based on the student’s grade level at the time of certification. UACCB cannot and will not certify a loan that is not requested (and will not automatically modify the loan request without written notification from the borrower.)

Entrance/Exit Counseling

Federal laws require all borrowers to participate in student loan Entrance Counseling. The counseling explains the terms and conditions for the loan. It also provides borrowers with information about the various Direct Loan repayment options. Exit Counseling is performed at the end of the term. Borrowers must complete Exit Counseling before leaving UACCB. This counseling session explains what will occur before and after loan repayment. Entrance and Exit Counseling occur on-line at The multiple choice questions and answers must be completed. Applicants may request an appointment for in-person help with the online counseling (Entrance and/or Exit).

Direct Loan Eligibility

Students must be fully admitted to UACCB (submitted all required documentation including transcripts, immunization records, and placement test scores) and be seeking a degree offered at UACCB.

Completing the Federal Direct Loan application and submitting it to the Financial Aid Office does not guarantee eligibility. Applicants must meet all federal aid eligibility requirements. Eligibility includes, but is not limited to Completing the Free Application for Federal Student Aid (FAFSA), completing entrance counseling, completing and signing a Master Promissory Note (MPN) and submitting the Direct Loan application.

Twelve (12) credit hours must have been successfully completed with at least a 2.0 GPA and the successful completion of Reading Improvement, Basic Writing, and Beginning Algebra, if required, for an applicant to be eligible for a student loan to be processed.

By signing the loan request, applicants agree to all of the terms and conditions for the Federal Direct Student loan. Eligibility requires the applicant to maintain at least half-time enrollment throughout the period of the loan and notify UACCB or the Federal Direct Loan Servicing center of any changes in status such as name, address, enrollment status, and change of schools. Borrowing the low-interest, Federal Direct Loan is a privilege. Even though it is a loan, UACCB reserves the right to refuse to certify a loan application for high-risk borrowers. Such conditions include, but are not limited to, having a previous default on a federal student loan, notification of previously discharged federal student loans due to disability or bankruptcy, notification of delinquent federal student loan repayment status, instances of inconsistent, fraudulent FAFSA, or admissions application information, or applicants with loan indebtedness in excess of the maximum for two-year public institutions. Loan certification requires all applicants to maintain good academic standing according to the Satisfactory Academic Progress Policy.

Before Accepting a Student Loan

Explore scholarships, grants, and Federal Work-Study opportunities at UACCB. Budget your own resources to live more economically. Borrow only what you need. Loans must be paid back even if you don't graduate, transfer or are unhappy with your education or training or are unable to obtain employment. Avoid default at all costs. If you run into financial problems with your repayment schedule, contact the Direct Loan Servicing Center at (800) 848-0979. There may be solutions that can keep you on track and protect your credit rating. Visit the Direct Loan Servicing Center at for tips on managing loan debt.