How the Loans are Disbursed
Generally, your loan will cover a full academic year. The money will be delivered in two payments to you, at the beginning of each semester during the academic year. We will disburse your loan money by crediting it to your school account to pay (tuition and fees). If the loan disbursement amount exceeds your school charges, we will pay you the remaining balance of the disbursement directly to your German bank account. We will receive your money in Euro, so for all transactions the exchange rate $/€ from the day we have received your money will apply. We will notify you in writing each time we disburse part of your loan money and will provide information about how to cancel all or part of your disbursement if you find you no longer need the money. You will also receive a notice from the U.S. Department of Education confirming the disbursement. You should read and keep all correspondence received concerning your loan.
Using the Loan for Educational Expenses
You may use the loan money you receive only to pay for your education expenses. Education expenses include school charges such as tuition, room and board, fees and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation and rental or purchase of a personal computer.
Enrollment Status & Other Changes
It's important to keep the Direct Loan Servicing Center informed of any changes in your status, so that your loan information is up-to-date. This is your responsibility. You must notify the Direct Loan Servicing Center if you:
- Change your local address, permanent address or telephone number;
- Change your name (for example, maiden name to married name);
- Do not enroll as a full time student for the loan period certified by the school;
- Do not enroll at the school that certified your loan;
- Stop attending school;
- Transfer from one school to another school; or
Until you graduate or leave school, you must also keep Frankfurt School informed of these changes. A non-scheduled break in enrollment (e.g. vocational semester for a non-for-credit internship), is considered an interruption in your enrollment; you must inform your Direct Loan Center. When you graduate or withdraw from your academic program, you will receive a six-month grace period for your Direct Subsidized and Unsubsidized Loans. Once your grace period ends, you must begin repaying your loan(s). See "After Graduation".
Paying Interest while at Frankfurt School
You may choose to pay interest on your Direct Unsubsidized or Direct PLUS loans while you are in school. If you choose not to pay the interest while you're in school, the Department will add it to the unpaid principal amount of your loan. This is called "capitalization," and it can substantially increase the amount you repay, especially if you are receiving multiple loans for a multi-year program. Capitalization increases the unpaid principal balance of your loan, and the Department will then charge interest on the increased principal amount. It will save you some money in the long run if you pay the interest as it accrues on your loan while you're in school or during the grace period. This is also true if you pay any interest that accrues during periods of deferment or forbearance after you leave school.
If you have not previously received a Direct Loan, the US Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming. This counseling can be done online. Please click the links below and complete the appropriate entrance counseling.
If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.
If you are completing entrance counseling to borrow a loan as a graduate or professional student , the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.