Loan Resources

Learn about the requirements of your federal loans and the steps you need to take to satisfy them.

Direct 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). There are two types of MPNs in the Direct Loan Program: one for Direct Subsidized/Unsubsidized Loans and one for Direct PLUS Loans.

The Federal Direct Loan Program offers the following types
of loans:

• Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.
• Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
• PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Steps to Complete the MPN

1. Log onto http://studentloans.gov
2. Click on the Sign In box. You will be required to enter your SSN Number, first two characters of your last name, your Date of Birth and PIN.
3. Once you have logged in, select Complete Master Promissory Note (MPN). Be sure to select the MPN you need for the type of loan you accepted.

Entrance Counseling

Entrance Counseling is a federal requirement for all Direct Stafford Loan recipients. The funds for your loan will not be disbursed until you have completed the counseling. Entrance Counseling provides you with information about:

• Your rights and responsibilities as a borrower.
• Interest rates, expenses, repayment plans, and other important details about borrowing
• Who to contact with questions

Steps to Complete the Entrance Counseling:

1. Log onto studentloans.gov
2. Click on the Sign In box. You will be required to enter your SSN Number, first two characters of your last name, your Date of Birth and PIN.
3. Once you have logged in, select Complete Entrance Counseling. You will need about 30 minutes to complete the counseling session.

Exit Counseling

Exit Counseling is a federal requirement for all Federal Direct Stafford Loan recipients and Federal Perkins Loan recipients. Exit counseling requirements were created to ensure that you understand your rights and responsibilities as a borrower. During the counseling, you will learn how to make payment of your loans easier and how to get help and protect your credit rating if you have problems.

Steps to Complete Exit Counseling:

1. Go to the National Student Loan Data System located at http://www.nslds.ed.gov/nslds_SA/
2. Choose Exit Counseling
3. Complete the Exit Counseling requirements.

Alternative Loan Programs

If your family is not eligible for need-based financial assistance or choose not to apply, these programs offer alternative loan resources. Students who are receiving financial aid can also utilize these programs to finance all or part of their calculated expected family contribution. Borrowers must be creditworthy to participate in these programs. Students who are not creditworthy by program guidelines, may still be eligible to participate IF they can find a creditworthy person to cosign their loan application.

US Dept. of Educations Debt Relief Announcement

On August 24, 2022, President Biden announced he will cancel $10,000 for single borrowers making less than $125,000 or households earning less than $250,000 on federally-held student loan debt.  Eligible Pell Grant recipients will receive an extra $10,000 in relief.

Loan Eligibility

The Department of Education (ED) states the types of federal student loans with an outstanding balance as of June 30, 2022 eligible for relief are Direct Loans (subsidized and unsubsidized), Parent PLUS, and Grad PLUS loans, and consolidated loans.  Consolidated loans are eligible as long as all of the underlying loans that were consolidated were first disbursed on or before June 30, 2022.  If a borrower consolidated federal loans into a private non-federal loan, the consolidated private loan is not eligible for debt relief.

Borrowers with privately held federal student loans, including FFEL, Perkins, and HEAL programs, can receive the loan cancellation by consolidating these loans into the Direct Loan program, according to ED. However, FFEL Joint Consolidation Loans — which are often referred to as spousal consolidation loans — are not eligible for consolidation into the Direct Loan program under current law.

Defaulted loans — including federally-held or commercially serviced subsidized Stafford, unsubsidized Stafford, Parent PLUS, and Grad PLUS, along with Perkins loans held by ED — are also eligible for relief. Defaulted borrowers with a remaining balance after the relief are recommended to get out of default through ED’s new “Fresh Start” initiative. 

Next Steps

ED recommends borrowers first determine if they’re eligible for the relief by checking their annual federal income in 2021 or 2020. Borrowers then should log into their account on StudentAid.gov and with their own loan servicer to make sure their contact information is correct. Borrowers who don’t have an FSA account should make one. 

The application to receive relief will be available online by early October 2022 and a paper version of the form will be made available at a future date. Updates as to when the application is made live will be emailed to borrowers and updated on the FSA website. Borrowers will have until Dec. 31, 2023, to submit their application.

Important Websites – Be Aware of Scams!!!

To make sure you are kept up to date on the latest information regarding this debt relief program, please make sure to register for the New!! Federal Student Loan Borrower Updates at https://www.ed.gov/subscriptions.

ED will continue to post updated FAQs for borrowers at their website, One-Time Student Loan Debt Relief (studentaid.gov)

Avoid Scams – Scammers know about this upcoming program too.  You may be contacted by companies that claim they can help you get loan discharge, forgiveness, cancellation, or debt relief for a fee.  You NEVER have to pay for help with your federal student aid.  Make sure you work only with ED or their trusted partners, and never reveal your personal information or account password to anyone.  ED emails to borrowers come from noreply@studentaid.gov.  Visit this website for more information Avoiding Student Aid Scams | Federal Student Aid.