Anderson, Indiana

Q & A: Federal Direct Loans

Fri, 2012-04-27 00:03 -- batch_migrate

Q & A: Federal Direct Loans

What are Direct Loans?

Beginning July 1, 2010 all colleges and universities must use the William D. Ford Federal Direct Loan Program for new federal loans, commonly referred to as Direct Loans. Under the Direct Loan Program the federal government will serve as your lender.

What must a graduate student do to apply for a Direct Grad PLUS Loan?

Grad PLUS loan borrowers will be subject to a credit check by the U.S. Department of Education.

  1. Request your loan online.
  2. Graduate students indicate the amount they want to borrow (for the current school year) based on their eligibility as indicated by their financial aid counselor.

  3. Complete and sign a Master Promissory Note (MPN) online.
  4. To receive the funds you must complete a Master Promissory Note (MPN) at www.studentloans.gov.

    Log in using your FAFSA PIN number. It is the same four-digit Personal Identification Number (PIN) you used to complete the Free Application for Federal Student Aid (FAFSA).

    The MPN is a legal document in which the student promises to repay the loan and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan. Once the MPN has been completed the school will be informed electronically.

What if I have lost or forgotten my PIN or I need to apply for one?

Retrieve your PIN at www.pin.ed.gov. Select “Request A Duplicate PIN”, answer the challenge question correctly, then select “Display Now”. After three incorrect answers your PIN is deactivated and you must apply for a new PIN. There is a forty-eight hour waiting period before the new PIN will become active.