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Federal Direct Loans are the most common source of college financial aid loan funds. Students must be matriculated and at least half-time (six credits at Salem State) to be eligible to receive these loans. There are two types of Federal Direct Loans:

• ���ܲ������徱�������Direct Loans are need-based, and the government pays the interest on these loans while you are in school��in at least half-time credits, during a six-month grace period immediately preceding repayment, and during any authorized deferment.
• ���Բ��ܲ������徱�������Direct Loans are��not��need-based, and you are responsible for all of the interest that accrues on the loan, including while you are in school. You may make arrangements with your lender to make "interest only" payments while you are enrolled in school.

Direct Loan amounts offered depend on your grade level and dependency status.

Graduate students are awarded Direct Loans up to the total cost of attendance. The amount of Subsidized versus Unsubsidized is dependent on your financial need. Eligible graduate students may receive up to $8,500 of their total Direct Loan award in Subsidized Loan with the remainder offered��in Unsubsidized Loans.

Dependent undergrads may receive the following*:

(*Remember: subsidized loans are need-based, if you are not eligible for full subsidized loan you will be awarded unsubsidized up to the maximum for your grade level)

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Independent undergraduate students are eligible for additional unsubsidized amounts depending on their grade level:

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Dependency Status

A student’s����determined by the information a student enters on their FAFSA. The Federal government has specific guidelines to determine whether a student is considered dependent or independent for financial aid purposes. “��can help students determine their dependency status when filling out the FAFSA form.

Please note not living with parents, not being claimed on parents’ tax forms or parents’ refusal to help pay for college does not make a student an independent student for purposes of applying for federal financial aid. If you����on the FAFSA please visit����for more information.

In certain situations, a student can submit their FAFSA without their parents’ information if they have no contact with their parents for the special circumstances:

• A student’s parents are incarcerated
• A student left home due to an abusive family environment
• A student does not know where their parents are and is unable to contact them (and a student has not been adopted).
• A student is older than 21 but not yet 24, are unaccompanied, and are either homeless or self-supporting and at risk of being homeless

When filling out the FAFSA a student will be asked whether or not they are able to provide information about their parents. If they are not, they will have the option to indicate they have a special circumstance that make them unable to get their parents information. Please be advised students filing out their FAFSA this way will be rejected and will not load into the Salem State’s financial aid system.

A student may be eligible for a dependency override if they meet any of the above requirements. Students will be required to submit several items to document their situation. Please contact the��Student Navigation �鶹���˾�Ʒ��for details. Please note we do not grant dependency overrides based on “financial independence”. A student who is living financially independent from their parents by choice, circumstances, student’s employment, or geography does not constitute independency per Federal guidelines.

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*Incomplete promissory notes��Failure to do so results in loan cancellation. If funds are awarded after the start of school, come to Financial Aid to sign notes and for entrance loan counseling. For incoming students, loan counseling is also done at Orientation.

Please note that if you receive a revised award during the year, a promissory note must be signed for any additional funds awarded. When you terminate your studies at Salem State, you must have an exit interview. Your loan obligations and repayment conditions are explained again at that time.