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Taking on a loan is a huge responsibility. Therefore, it is pertinent that students must understand their rights and responsibilities regarding the repayment of these types of loans. To accomplish this goal all students must complete Loan Entrance Counseling prior to the first loan disbursement. Upon graduation, withdrawal, or enrollment of less than half-time (6 credit hours), all students are required to complete loan Exit Counseling.

All Federal Direct Student Loan borrowers must complete the following required documents:

  • Entrance Loan Counseling
  • Exit Loan Counseling
  • Master Promissory Note

What is Entrance Loan Counseling?

What is Exit Loan Counseling?

Where can I go to complete the entrance and exit counseling?

  • Entrance and exit counseling can be located at www.studentloans.gov.
  • There is an entrance and exit counseling for both Undergraduates and Graduates.

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). If you are a student borrower under the Direct Loan Program attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN. It will be used for all of your loans over multiple academic years. For example, if you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all years.

If you are a parent borrower under the Direct Loan Program whose child is attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN. It will be used for all of your loans over multiple academic years.

For example, if your child enrolls in college as a freshman and borrows under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all years.

There are three types of Stafford Direct Loans:

  • Stafford Direct Subsidized Loan
  • Stafford Direct Unsubsidized Loan
  • Stafford Direct Plus Loan

Stafford Direct Subsidized Loan

This is a low-interest loan made to students by the federal government "directly". Eligibility for a "subsidized" Federal Stafford Loan is based on financial need as determined by a federally mandated formula. "Subsidized" means that the federal government will pay the interest on the loan while a student is in school and during specified deferments.

Eligible freshmen may borrow up to $3,500 per year, sophomores up to 4,500; and juniors and seniors may borrow up to $5,500 per year. The maximum allowable for subsidized loans for undergraduate indebtedness is $23,000.

For interest rates, please refer to the Direct Loan Page.

Federal Direct Stafford Loans must disbursed in two installments: one in the fall semester and one in the spring semester, after enrollment for each semester. When the loan is disbursed, federally required origination fee (which is used to offset administrative costs of the program) is DEDUCTED from the loan by the government. For example, a loan of $3,500 is disbursed in two installments of $1,732 each, totaling $3,464 after the fees are deducted.

Repayment begins six months after the borrower's last date of enrollment on at least a half-time basis.

Stafford Direct Unsubsidized Loan

A Federal Direct Stafford Unsubsidized Loan is a low interest loan made to students by the Federal government "directly". Under this program, the student borrower (and not the Federal government) pays the interest that accrues on the loan while the student is in school. Eligibility for a Federal Stafford Unsubsidized loan is determined by the Financial Aid Office using a federally mandated formula.

Eligible dependent freshmen may borrow up to $2000 per year, sophomores up to $2000; juniors and seniors may borrow up to $2000 per year. A student who shows need for only part of an annual subsidized Federal Direct/Stafford Loan may borrow the remainder through an unsubsidized loan.

For interest rates, please refer to the Direct Loan Page. Federal Direct Stafford Loans must be disbursed in two installments: one in the fall semester and one in the spring semester after enrollment for each semester. When the loan is disbursed, federally required loan fees (used to offset administrative costs of the program) are DEDUCTED from the loan by the government. For example, a loan of $2000 is disbursed in two installments of $990 each, totaling $1980 after the fees are deducted.

Direct Student Loans for Graduate Students.

Graduate students are eligible for Direct Stafford Unsubsidized loans. For interest rates, please refer to the Direct Loan Page. Federal Direct Stafford Loans are disbursed in two installments: one in the fall semester and one in the spring semester after enrollment for each semester. When the loan is disbursed, federally required loan fees (used to offset administrative costs of the program) are DEDUCTED from the loan by the government.

Federal Direct Parent PLUS Loan Program (Parent’s loan)

The Federal Direct PLUS Loan is a federally insured loan made by "directly" by the federal government. Repayment of principal and interest begins 60 days after the loan proceeds have been disbursed. Eligibility for this loan is based on credit-worthiness as determined by the lender. For interest rates, please refer to the Direct Loan Page.

Federal Direct PLUS Loans are disbursed to the college in two installments: one in the fall semester and one in the spring semester, after enrollment for each semester. When the loan is disbursed, federally required loan fees of 4.228% (used to offset administrative costs of the program) are deducted from the loan by the government or lender. Parents of dependent students may borrow up to the cost of education minus any financial aid. These loans, in combination with all other aid (including loans) may not exceed the educational cost of attendance. Financial need is not an eligibility factor.

Additional Unsubsidized Loans (Dependent students)

  • In the event that a Parent is denied for a Federal Direct PLUS loan for their dependent student, the student then becomes eligible to accept the additional Direct Unsubsidized Stafford loan $4000/5000 based on the grade level of the student at the time and within the financial aid cost of attendance limits.
  • Aggregate Direct Stafford loan limits are the maximum amount you can take out in student loans.
  • Dependent Undergraduate students are eligible for up to 31,000 in a combination of Stafford Subsidized and Unsubsidized loans with no more than 23,000 of that in Subsidized loan funds.
  • Independent Undergraduate students are eligible for up to 57,500 in a combination of Stafford Subsidized and Unsubsidized loans with no more than 23,000 of that in Subsidized loan funds.
  • Graduate students are eligible for up to 138,000 in combined (Undergraduate and Graduate) loans.

YOUR FEDERAL STUDENT LOAN INFORMATION CAN BE FOUND AT NATIONAL STUDENT LOAN DATABASE(NSLDS)

Private (Educational) loans

Private loans help bridge the remaining amount of funds needed for your education. A separate application is required directly with the lender. Eligibility for this loan is based on credit-worthiness as determined by the lender.