How do I apply for a Direct Loan?
First, you must complete the Free Application for Federal Student Aid (FAFSA). After your FAFSA is processed, your school will review your ISIR (Institutional Student Information Record) and will inform you of your loan eligibility.
You must then complete the MPN (Master Promissory Note) available on studentaid.gov. Remember, the promissory note is a legal document requiring you to repay the loan. Read it carefully before you sign. Students borrowing Federal Direct Loans must also complete
Loan Entrance Counseling on studentaid.gov. Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities.
How do I pay back my Direct Loan?
The Direct Loan Program offers repayment plans that base your monthly payment amount on your income or that give you a fixed monthly payment over a set repayment period. The repayment plans will be explained to you in more detail during loan entrance counseling, which you will be required to complete before your loan can be processed. Exit counseling will also be required upon completion of the program, withdrawal from the program, or dropping below 6.0 units.
The Loan Simulator Tool on the Department of Education’s Federal Student Aid site shows estimated monthly payments for various loan amounts under each of the plans. In some cases, it may be beneficial for you to consolidate one or more of your Direct Loans into a Consolidation Loan.
You can find more details about each type of repayment plan at the Federal Student Aid site.
Go to FinAid.org to access a loan payment calculator. This will assist you in estimating your monthly loan payments and the annual salary required to manage them.
Federal Direct Loans are sometimes referred to as Direct Stafford Loans. To learn more about the differences between Direct Subsidized Loans and Direct Unsubsidized Loans, visit
Subsidized and Unsubsidized Loans | Federal Student Aid.