Direct Loan FAQ
How do I apply?
Do I have to complete Loan Entrance Counseling and a Master Promissory Note (MPN)?
What are the benefits of the Federal Direct Loan Program?
Are there any differences in interest rates and fees between FFEL and Direct Loans?
What happens to the Stafford/PLUS Loans I borrowed in previous years?
How will repayment be handled if I have both FFEL and Direct Loans?
Where can I find information about who services my federal student loans?
Will I still be able to borrow alternative loans through a lender of my choice?
How do I apply?
- Students must complete the 2010-2011 Free Application for Federal Student Aid (FAFSA).
- Students must complete Federal Direct Loan Entrance Counseling. Visit the studentloans.gov to complete Direct Loan Entrance Counseling. In order to complete Direct Loan Counseling, students must have their Federal Student Aid PIN available at www.pin.ed.gov. Select Clark State Community College as a school to receive your entrance counseling results.
- Students must complete a master promissory note (MPN) for their Federal Direct Stafford Loan(s). To complete an MPN for the Federal Direct Loan Programs, visit the studentloans.gov. Students must have their Federal Student Aid PIN available at www.pin.ed.gov to electronically sign an MPN.
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Do I have to complete Loan Entrance Counseling and a Master Promissory Note (MPN)?
Yes. All students must complete Direct Loan Entrance Counseling and Direct Loan Master Promissory Note. In preparation for 2010-11 aid year (Summer 2010 - Spring 2011) processing, students may opt to complete their Entrance Counseling and Stafford Loan MPN now. Once completed, these items will appear as satisfied requirements for the 2010-11 aid year.
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What are the benefits of the Federal Direct Loan Program?
There a several benefits to the Federal Direct Loan Program. For detailed information, visit the U.S. Department of Education's Federal Direct Loans website.
- A guaranteed source of funding
- A lower interest rate on PLUS Loans
- A single point of service for repayment
- Additional repayment options for students and interest rate reductions for on-time payment
- The Public Service Loan Forgiveness Program
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Are there any differences in interest rates and fees between FFEL and Direct Loans?
The interest rate for Federal Direct Stafford Loans is the same as that of the FFEL Program. However, the Direct PLUS Loan interest rate is 7.9%, whereas the PLUS Loan interest rate in the FFEL Program is 8.5%.
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What happens to the Stafford/PLUS Loans I borrowed in previous years?
Stafford Loans from previous aid years should remain in deferment as long as the student is enrolled at least half-time. PLUS Loan borrowers may request deferment if the student is enrolled at least half-time.
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How will repayment be handled if I have both FFEL and Direct Loans?
Payment on Stafford/PLUS Loans are made by the borrower to their federal loan servicer. Borrowers that have multiple loan servicers for their loans will have multiple payments to make. Borrowers can opt to consolidate all of their federal student loans (both FFEL and Direct Loans) into one loan. For more information about Federal Consolidation Loans, visit the Federal Direct Consolidation Loan website.
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Where can I find information about who services my federal student loans?
Borrowers can find detailed information about their federal student loans, including their loan servicers, on the National Student Loan Data System (NSLDS). Borrowers will need their Federal Student Aid PIN available at www.pin.ed.gov to access their federal student loan records.
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Will I still be able to borrow alternative loans through a lender of my choice?
Yes. Students may continue to pursue alternative loans with a lender of their choice, however it is strongly recommended students apply for federal student aid first.
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