Accepting the Federal Direct Loan
All first-time borrowers (Freshmen and New Transfer students) must complete a Master Promissory Note (MPN) and Entrance Counseling. Otherwise, the aid will not disburse to your account. Counseling is important and recommended to all new students. You will need your FSA ID and password to complete your Entrance Counseling and Master Promissory Note. You can create or retrieve an FSA ID and password at "https://fsaid.ed.gov/npas/index.html" if you do not remember it (NOTE: This is the same information you used to sign your FAFSA application). To complete Entrance counseling, go to www.studentaid.gov.
Promissory Note
Learn about the requirements of your federal loans and the steps you need to take to satisfy them.
What is a Direct Master Promissory Note (MPN)?
The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). There are three types of MPNs in the Direct Loan Program: one for Direct Subsidized/Unsubsidized Loans, one for Direct PLUS Loans, and Graduate PLUS Loans.
- Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period.
- Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
- PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
- Log onto https://studentaid.gov/mpn/
- Click on the Sign In box. You will be required to enter your FSA ID and Password.
- Once you have logged in, select Complete Master Promissory Note (MPN). Be sure to select the MPN you need for the type of loan you accepted.
What is Entrance Counseling?
Entrance Counseling is a federal requirement for all Direct Stafford Loan (subsidized and unsubsidized) recipients. Graduate students taking out Direct PLUS Loans who have not previously received a PLUS loan under the Direct Loan Program or the FFEL Program, are required to complete entrance counseling even if you previously completed it for a subsidized or unsubsidized loan.
- Your rights and responsibilities as a borrower.
- Interest rates, expenses, repayment plans, and other important details about borrowing.
- Who to contact with questions.
Note: The funds for your loan will not be disbursed until you have completed the Entrance Counseling.
- Log onto https://www.studentaid.gov.
- Click on the Sign In box. You will be required to enter your FSA ID and Password.
- Once you have logged in, select Complete Entrance Counseling. You will need about 30 minutes to complete the counseling session.
What is Exit Counseling?
Exit Counseling is a federal requirement for all Federal Direct Stafford Loans, Plus Loans and Federal Perkins Loan recipients. It is required before you withdraw, graduate or drop below half-time attendance (even if you plan to transfer to another school.) Exit counseling helps you understand your rights and responsibilities as a student loan borrower. During the counseling, you will learn useful tips and information to help you manage your loans such as repayment options.
- Log onto https://www.studentaid.gov.
- Click on the Sign In box. You will be required to enter your FSA ID and Password.
- Once you have logged in, select Complete Exit Counseling.
Repayment Options
- Standard Repayment
- Graduated Repayment
- Extended Repayment
- Pay as you Earn
- Income-Sensitive
- Income-Contingent
- Income-Based
- Loan Consolidation
- Deferment
- Forbearance
- Flexible Pay
- Loan Forgiveness
To learn more about repayment options and strategies available if you are having difficulty paying, click below.
Public Service Loan Forgiveness Program
The Department of Education created the Public Service Loan Forgiveness Program (PSLF) to encourage individuals to enter and continue to work full-time in public service jobs. The Public Service Loan Forgiveness Program allows eligible borrowers to cancel the remaining balance of their Direct loans after serving full-time at an eligible public service organization for at least 10 years while making 120 qualifying monthly payments after October 1, 2007.
Repayment Calculator/Estimator
The Repayment Calculator/Estimator can be used when you're beginning repayment of your federal student loans for the first time or exploring repayment options based on your income.
To use the Repayment Calculator/Estimator, log into the calculator by clicking here:
Pros & Cons of Consolidation
Consolidation can lower the borrower's total monthly repayment and simply loan repayment. Because the repayment period for consolidated loans is often longer than for most Federal Direct Loans, the monthly payments may be lower. However, the total interest that is paid over the longer repayment period is usually greater. If the borrower has more than one loan, a consolidation loan simplifies repayment because there's only one lender and one monthly payment. Consolidation may be an option for a borrower in default if certain conditions are met. The borrower should also be aware that some deferments and other benefits available with his/her current loans (especially Perkins) may be lost through consolidation.