Applying for Direct Loans
Anderson University notifies students of their direct loan eligibility in the financial aid award letter.
- Federal Direct Subsidized and Unsubsidized loans are borrowed by the student.
- Federal Direct PLUS loans are borrowed by the parent(s) on behalf of the student.
STUDENTS - Federal Direct Subsidized and Unsubsidized Loans
First-time student borrowers must complete two steps to receive direct loan funds.
- Complete online Entrance Counseling. Entrance counseling is an interactive 30 minute session that the student borrower must complete.
- The U.S. Department of Education requires that every student complete Entrance Counseling the first time they borrow a federal direct loan.
- If students who borrowed transfer from one university to another, Entrance Counseling does not need to be repeated. Likewise, graduate students who previously borrowed direct loans as undergraduates do not need to repeat Entrance Counseling.
- Sign a Master Promissory Note (MPN). The MPN must be completed one time and is valid for up to 10 years.
- Transfer students must update an existing MPN with the appropriate school code.
- The MPN is a legal document in which students promise to repay their loan(s) and any accrued interest and fees to the U.S. Department of Education.
- The MPN explains the students’ rights and responsibilities as first time borrowers.
- Student borrowers must complete an MPN using their own Federal Student Aid PIN.
PARENTS - Federal Direct PLUS Loan
First-time borrowers: Complete steps 1 and 2
Repeat borrowers: Complete step 1 only.
Note: If more than one parent, including the step-parent, is borrowing then each parent or step-parent must complete the required steps for their own loan request.
- Request a Direct PLUS Loan
- The parent indicates the amount he/she wants to borrow (for the current school year) based on the student’s eligibility as indicated in the financial aid award letter.
- Direct PLUS Loan requests collect parent information that will be used by the school to process the application.
- PLUS loan borrowers will be subject to a credit check by the U.S. Department of Education.
- Sign a Master Promissory Note
- Parent borrowers must complete an MPN for each student using their own (parent) Federal Aid PIN.
- The Direct PLUS Loan MPN constitutes the parent’s legally binding agreement to repay all Direct PLUS Loans that the student receives.
- The Direct PLUS Loan MPN explains all of the terms and conditions of Direct PLUS Loans.
Questions or concerns? Please email the Office of Student Financial Services at email@example.com or call (800) 421-1026.