Accept your loan. 

Most colleges require that you inform the team that processes financial aid that you want a Federal Direct Student Loan. Typically, you will need to log into your student portal, navigate to financial aid, select the loan from the list of aid, and follow the instructions.

Estimate 5 minutes

Complete entrance counseling at

First time borrowers are required to complete entrance counseling to ensure you are aware of what a Federal Direct Student Loan is, how it is processed, and your rights and responsibilities as a borrower. 

Estimate 20-30 minutes

Complete a master promissory note (MPN) at

This is your legal document containing a promise to repay and outlines the terms and conditions for payment. You can electronically sign the MPN. 

Estimate 20-30 minutes

Authorize the college to use your loan funds. 

Many colleges require that you authorize them to use your loan funds to satisfy other educationally related charges beyond tuition and fees, and room and board have been paid. Also, many ask that you designate whether the school pays any credit balance to the student or to you. Frequently, colleges have you will log into your student portal, navigate to student accounts, select authorization section, and complete the instructions. If you don’t sign up for direct deposit, a check is mailed to the mailing address you provide to the college. 

Estimate 5-10 minutes

Federal Direct Student Loan Basics

  • No credit check
  • Standard 10-year repayment
  • Fixed rate at 4.53%
  • Loan Fee of 1.059% deducted from proceeds
  • Builds student’s credit history
  • Most repayment plans & forgiveness options
  • Most deferment &  forbearance options
  • No prepayment penalties