Frequently Asked Questions

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.

If you're an undergraduate or a graduate/professional student attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you may be required to sign only one MPN for all of your Direct Subsidized Loans and Direct Unsubsidized Loans. If you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all academic years.

Note: Graduate/professional students aren't eligible for Direct Subsidized Loans.

If you're a graduate/professional student attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you may be required to sign only one MPN for all of your Direct PLUS Loans. You may be able to borrow under this one MPN for all academic years of graduate/professional study.

If you're a parent whose child is attending a school that is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you may be required to sign only one MPN for all of your Direct PLUS Loans. You may be able to borrow under this one MPN for all academic years of that child's undergraduate study.

Note: Parents must sign an MPN for each child for whom they are borrowing.

If you do not want to receive more than one federal student loan under the same MPN, you must notify your school or your loan servicer in writing each academic year.

To complete a paper MPN, contact the school's financial aid office.

Complete a paper MPN.

Complete an electronic MPN.

Your school's financial aid office will be notified of the completion and will contact you if further action is needed.

Before your loans are disbursed, you'll receive a disclosure statement from the U.S. Department of Education or your school.

View completed MPNs. (must be logged in)

View correspondence. (must be logged in)

No. You'll need to complete the entire electronic MPN process in a single session. If you exit the Web Site before submitting your signed MPN and return later, you'll have to start over from the beginning of the process.

Direct PLUS Loans are loans available to parents of dependent undergraduate students to help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Parents completing an electronic PLUS MPN or applying for a PLUS loan must use their own FSA ID, and not their child's FSA ID.

Direct PLUS Loans are loans available to graduate/professional students to help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Graduate students should request unsubsidized loans up to their full eligibility. You may need to complete a Direct Subsidized/Unsubsidized Master Promissory Note.

Parent borrowers of a Direct PLUS Loan:

• Must be the biological or adoptive parent of a dependent undergraduate or the spouse of the parent whose income and assets were reported on the Free Application for Federal Student Aid (FAFSA^®), or would be reported if a FAFSA^® were filed.
• Must be a U.S. citizen or eligible non-citizen.
• Must not be in default on any federal education loans or owe an overpayment on a federal education grant.
• Must not have an adverse credit history or:
  • must obtain an endorser and complete PLUS Credit Counseling, or
  • document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to their adverse credit history and complete PLUS Credit Counseling.
• And their dependent child:
  • Must be a U.S. citizen or eligible non-citizen.
  • Must not be in default on any federal education loans or owe an overpayment on a federal education grant.
  • Must be enrolled at least half-time at a school that participates in the Direct Loan Program and meet the general eligibility requirements for the Federal Student Aid programs, including filing a FAFSA^®.

Graduate/Professional Student Borrowers of a Direct PLUS Loan:

• Must be enrolled at least half-time at a school that participates in the Direct Loan Program and meet the general eligibility requirements for the Federal Student Aid programs, including filing a FAFSA^®.
• Must be a U.S. citizen or eligible non-citizen.
• Must not be in default on any federal education loans or owe an overpayment on a federal education grant.
• Must not have an adverse credit history or:
  • Must obtain an endorser and complete PLUS Credit Counseling, or
  • Must document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to their adverse credit history and complete PLUS Credit Counseling.

First time borrowers must submit a Master Promissory Note (MPN). Your school also may require you to complete a Direct PLUS Loan Request. You can complete both the MPN and apply for a PLUS loan at this site.

Complete a PLUS MPN.

Apply for a PLUS loan.

Parents completing an electronic PLUS MPN or applying for a PLUS loan must use their own FSA ID and not their child's FSA ID.

Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.

Contact your school's financial aid office if you have questions regarding your Direct PLUS Loan.

View completed PLUS loan applications. (must be logged in)

No, these factors aren't taken into account when your credit history is reviewed. A lack of credit is not considered adverse credit.

Adverse Credit Conditions include but aren't limited to:

• Bankruptcy (Chapters 7, 11, or 12 within the past 5 years).
  Note: Department Policy does not consider Chapter 13 bankruptcy as adverse credit.
• Voluntary surrender within the last 5 years.
• Repossession within the last 5 years.
• Foreclosure proceedings started.
• Foreclosure within the last 5 years.
• Deed in lieu of foreclosure.
• Accounts currently 90 days or more delinquent.

• Collection accounts (open or closed) that have been placed in collection during the two years preceding the date of the credit report with a balance greater than zero.
• Charge off/write-off accounts (open or closed) that have been charged off during the two years preceding the date of the credit report with a balance greater than zero.
• Wage garnishment within the last 5 years.
• Defaulted loan that has been claim paid.
• Lease or contract terminated by default.
• County/State/Federal tax lien, within the past 5 years.

You may either obtain an endorser , or you may choose to document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. Once either of these courses of action have been completed you're also required to complete PLUS Credit Counseling on our secure StudentLoans.gov Web site.

Contact the school's financial aid office as soon as possible to let them know whether you plan to pursue a Direct PLUS Loan by obtaining an endorser or submitting documentation of extenuating circumstances.

If you decide not to pursue a Direct PLUS Loan, the school's financial aid administrator may be able to provide information concerning other options to assist you with paying for your or the student's education.

Obtain an Endorser

An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you don't repay it. If you're a parent borrower, the endorser may not be the student on whose behalf you're requesting the Direct PLUS Loan.

If you choose to obtain an endorser, the endorser may complete the endorser addendum on our secure StudentLoans.gov Web site. To complete the endorser addendum online, the endorser will need the borrower's last name and either the endorser code (if you applied for a PLUS loan on this Web site) OR the Loan/Award Identification Number and an FSA ID. If you applied for a PLUS loan on this Web site, the endorser code may be found in the confirmation e-mail you received or may be found on the "My Documents" page. If you did not apply for a PLUS loan on this Web site, the Loan/Award Identification Number may be obtained from the school.

After you have obtained an endorser you're also required to complete PLUS Credit Counseling on our secure StudentLoans.gov Web site.

Complete PLUS Credit Counseling.

Document Extenuating Circumstances

Document to the satisfaction of the U.S. Department of Education that:

• The information causing the adverse credit decision is incorrect or has been corrected.
• OR
• There are extenuating circumstances relating to the adverse credit history. (Note: Endorsers aren't eligible for this option.)

After you document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. You're also required to complete PLUS Credit Counseling on our secure StudentLoans.gov Web site.

Complete PLUS Credit Counseling.

After you submit your request to document extenuating circumstances, Student Loan Support Center will contact you. Once all documentation has been received, a determination will be made and provided to you within 7-10 business days.

If you believe there are extenuating circumstances related to the adverse credit information that should be considered in evaluating your eligibility for a Direct PLUS Loan, you may begin the process in one of the following ways:

1. Log In to StudentLoans.gov and select "Appeal Credit Decision". Follow directions. The Student Loan Support Center will contact you with further instructions.
2. Contact the Student Loan Support Center via Phone, Email, or Live Chat. Contact information is available on the Contact Us page.

Entrance counseling explains the obligations you agree to meet as a condition of receiving a Direct Loan.

Topics include:

• Understand Your Loans
• Manage Your Spending
• Plan to Repay
• Avoid Default
• Make Finances a Priority

If you're a student and have not previously received a subsidized/unsubsidized loan or PLUS loan (graduate/professional students only) under the Direct Loan Program or Federal Family Education Loan (FFEL) Program, you must complete entrance counseling for that loan type before receiving a loan to ensure that you understand your responsibilities and the obligations you're assuming.

Notes:

• The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program after that date.
• Graduate/professional students aren't eligible for Direct Subsidized Loans.

Complete entrance counseling.

No, your progress won't be saved if you navigate away from your Entrance Counseling session or log out of the StudentLoans.gov Web site.

Financial Awareness Counseling provides tools and information to help you understand your financial aid and assist you in managing your finances.

Topics include:

• Understand Your Loans
• Manage Your Spending
• Plan to Repay
• Avoid Default
• Make Finances a Priority

Anyone who is currently paying for or planning to pay for higher education can benefit from completing Financial Awareness Counseling.

Complete Financial Awareness Counseling.

No, your session won't be saved if you navigate away from your Financial Awareness Counseling session or log out.

PLUS Credit Counseling will help graduate/professional students and parents of eligible dependent undergraduate students understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.

If you are a parent or graduate/professional student who obtained an approved endorser or if The U.S. Department of Education has informed you that you have an adverse credit history and you have:

• documented to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.

PLUS Credit Counseling can be completed voluntarily at any time. If PLUS Credit Counseling is completed voluntarily and you're determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Credit Counseling completion, your PLUS Credit Counseling requirement will be considered to be fulfilled.

Complete PLUS Credit Counseling.

No, your progress won't be saved if you navigate away from your PLUS Credit Counseling session or log out of the StudentLoans.gov Web site.

Exit counseling provides important information you need as you prepare to repay your federal student loan(s).

Topics include:

• Understand Your Loans
• Plan to Repay
• Avoid Default
• Make Finances a Priority

If you are a student who has received a subsidized, unsubsidized or PLUS loan(s) under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:

• Drop below half-time enrollment
• Graduate
• Leave school

Note: The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program after that date.

Complete exit counseling.

No, your progress won't be saved if you navigate away from your exit counseling session or log out of the StudentLoans.gov Web site.

To apply for an Income-Driven Repayment Plan, you'll complete the Direct Consolidation Loan application process on StudentLoans.gov at no cost to you.

To repay under one of the income-driven plans, you must provide information about your income. You will be given the option to document your income electronically, using a data retrieval tool that we have established with the Internal Revenue Service. For security purposes we will not display your tax information on this application but will inform you that the retrieval was successful.

• If you do not want to use your adjusted gross income because your income has changed since you filed your last tax return you can still submit the application electronically. After submitting your online application, you will be provided instructions on how to provide documentation of your current income to your loan servicer.
• If you do not currently have any income, you will be allowed to self-certify that you do not have income on the online application.
• If you are married:
  1. Income-driven repayment plans are sometimes based on both your and your spouse's income and loan information. To simplify the process, nearly all applicants will have to have their spouse co-sign their application.
  2. Though your spouse does not need to be present when you apply, your spouse may need to co-sign your application before it can be completed. Please note: your spouse is not obligated to repay your loan by cosigning the IDR application.

A Direct Consolidation Loan consolidates (combines) multiple federal education loans into one loan at no cost to you. Through your completion of the free Federal Direct Consolidation Loan Application and Promissory Note, you'll confirm the loans that you want to consolidate and agree to repay the new Direct Consolidation Loan. Once the consolidation is complete, you'll have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated.

More Direct Consolidation Loan information is available on StudentAid.gov. If you have questions about consolidating your federal education loans before you apply, you can also contact the Loan Consolidation Information Call Center at 1-800-557-7392.

You can contact the Loan Consolidation Information Call Center at 1-800-557-7392.

No. The Direct Consolidation Loan application process is free. There is no cost to you.

To apply for a Direct Consolidation Loan, you'll complete the Direct Consolidation Loan application process on StudentLoans.gov at no cost to you.

Begin the consolidation process.

Yes. If you prefer to complete a paper version of the free Federal Direct Consolidation Loan Application and Promissory Note, go to Complete Paper Direct Consolidation Loan Application and Promissory Note.

No. You must complete the free Federal Direct Consolidation Loan Application and Promissory Note in a single session. The session should take you approximately 30 minutes to complete.

You'll complete the following steps:

1. Review and select loans for consolidation and then choose the federal loan servicer you want to complete the consolidation and service your new Direct Consolidation Loan.



2. Select your repayment plan.
   You should understand the details of the available repayment plans before you make a selection. General information about repayment plans is available at StudentAid.gov.
   
   • If you want to repay your Direct Consolidation Loan under the Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), or Income-Contingent Repayment (ICR) Plan, you will be able to electronically complete the Income-Driven Repayment Plan Request. To repay under one of the income-driven plans, you must provide information about your income. You will be given the option to document your income electronically, using a data retrieval tool that we have established with the Internal Revenue Service. For security purposes we will not display your tax information on this application but will inform you that the retrieval was successful.
   • If you do not want to use your adjusted gross income because your income has changed since you filed your last tax return you can still submit the application electronically. After submitting your online application, you will be provided instructions on how to provide documentation of your current income to your loan servicer.
   • If you do not currently have any income, you will be allowed to self-certify that you do not have income on the online application.
   • If you are married:
     1. Income-driven repayment plans are sometimes based on both your and your spouse's income and loan information. To simplify the process, nearly all applicants will have to have their spouse co-sign their application.
     2. Though your spouse does not need to be present when you apply, your spouse may need to co-sign your application before it can be completed. Please note: your spouse is not obligated to repay your loan by cosigning the IDR application.
   
   
   
3. Read the Direct Consolidation Loan terms and conditions.



4. Enter your personal and reference information.



5. Review, electronically sign, and submit the completed Federal Direct Consolidation Loan Application and Promissory Note.

Yes. You must continue making payments, if required, to the holders or servicers of the loans you want to consolidate until your consolidation servicer informs you that the underlying loans have been paid off.

If any loan you want to consolidate is still in a grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date by indicating the length of time you would like to delay processing.

During the application process, we will ask you if you want your consolidation servicer to begin processing your application upon receipt or to delay processing. If you want your consolidation servicer to delay processing, you'll select the number of months you want the servicer to wait before starting to process your application.

We will send your Federal Direct Consolidation Loan Application and Promissory Note to the federal loan servicer you choose to complete the consolidation and service your new Direct Consolidation Loan.

Your unique situation will determine whether you, or in some cases your spouse, must complete other actions.

• If you select the Standard, Graduated, Extended Fixed, or Extended Graduated repayment plan, you won't need to take additional action. We will e-mail you and explain that your consolidation servicer will contact you after reviewing your application and your eligibility for the repayment plan you selected.


• If you're not required to complete a paper Income-Driven Repayment Plan Request with alternative documentation as part of your Direct Consolidation Loan Application, you won't need to take additional action. We will e-mail you and explain that your consolidation servicer will contact you after reviewing your application and your eligibility for the repayment plan you selected.


• If you're required to complete a paper Income-Driven Repayment Plan Request with alternative documentation as part of your Direct Consolidation Loan Application, you'll need to take action. You must complete and submit the paper Income-Driven Repayment Plan Request and alternative documentation to your consolidation servicer. We will remind you through an e-mail that you can return to StudentLoans.gov to print the paper request and your consolidation servicer's address information. Once your consolidation servicer receives the paper request and documentation from you, the servicer will contact you after reviewing your application and your eligibility for the repayment plan you selected.


• If you select an income-driven repayment plan - REPAYE, PAYE, IBR, or ICR - and indicate that you have a spouse who must sign the Income-Driven Repayment Plan Request portion of your Direct Consolidation Loan Application, your spouse will need to take action before you submit your application or within seven (7) days after you submit your application. If your spouse is unable to co-sign the Income-Driven Repayment Plan Request portion of your application at the time of submission, we will place your Direct Consolidation Loan Application in a "Pending" status for seven (7) days. During this time, your spouse will need to login to StudentLoans.gov and co-sign your request. We will provide you with the information your spouse will need to access your request and co-sign it.
  
  After your spouse co-signs the Income-Driven Repayment Plan Request portion of your Direct Consolidation Loan Application, we will e-mail you. If you're required to complete a paper Income-Driven Repayment Plan Request with alternative documentation as part of your consolidation application, you'll need to take action after your spouse co-signs. We will remind you of the steps you may need to complete when we e-mail you.
  
  Note: Your Direct Consolidation Loan Application will change to an expired status if your spouse does not co-sign within seven (7) days, and you'll need to submit a new application if you want to apply for a consolidation loan.

Once we send your Direct Consolidation Loan Application and Promissory Note package to the consolidation servicer you select, you'll work with your servicer for all consolidation-related needs.

• If you have questions about your Direct Consolidation Loan Application, contact your consolidation loan servicer for more information.


• If you want to cancel your Direct Consolidation Loan Application, contact your consolidation loan servicer for more information.


• If you want to add additional loans to your Direct Consolidation Loan Application, you may do so within 180 days after your new consolidation loan is made without having to submit a new Direct Consolidation Loan application. Contact your consolidation loan servicer for more information.

Unless you're consolidating at least one loan that is in a grace period and request that your consolidation servicer delay processing your Direct Consolidation Loan, your servicer will begin by reviewing your application and your eligibility for the repayment plan you selected. Your servicer will contact you and let you know if additional information is needed to complete the processing of your consolidation application. Your servicer will also contact each holder of the loans you want to consolidate to verify that the loans are eligible for consolidation and to confirm the payoff amount. Your servicer will let you know in writing before paying off the loans. Finally, after the loans are paid off, your servicer will communicate and work with you to ensure the successful repayment of your new Direct Consolidation Loan.

If you're consolidating at least one loan that is in a grace period and request that your consolidation servicer delay processing your Direct Consolidation Loan until closer to the end of the grace period, your servicer won't start processing your consolidation application until the date that displays on your application after you select the number of months in the dropdown box. At the appropriate time, your servicer will complete the actions explained in the first paragraph.

Note: In all cases, it is critical that you continue to make payments, if required, to the holders or servicers of the loans you want to consolidate until your consolidation servicer informs you that the underlying loans have been paid off.

Yes. View your Direct Consolidation Loan Application and associated Income-Driven Repayment Plan Request, if applicable.

An FSA ID consists of a username (or verified e-mail address) and password which gives you access to Federal Student Aid's online systems and can serve as your legal signature when completing electronic documents.

When you create your FSA ID, your information is confirmed with the Social Security Administration (SSA). This takes one to three days, and you'll receive an e-mail (if you provide one) when this is complete.

Once SSA confirms your information, you will have a verified FSA ID and be able to log in to StudentLoans.gov.

If you don't have an FSA ID you won't be able to log in to StudentLoans.gov, or other Federal Student Aid sites.

Create an FSA ID.

Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.

More information is available by choosing "Help" when you create or update an FSA ID.

The U.S. Department of Education's Teacher Education Assistance for College and Higher Education Grant (TEACH Grant) Program provides funds to students who are completing or who plan to complete coursework that is required to begin a career in teaching, and who agree to teach full-time for at least four years:

• As a highly qualified teacher;
• At a school or educational service agency (ESA) servicing low-income students;
and
• In a high-need field.

TEACH Grant Initial and Subsequent Counseling will explain the TEACH Grant Program and the TEACH Grant service obligation you agree to meet as a condition for receiving a TEACH Grant. You must complete TEACH Grant Initial and Subsequent Counseling each year that you receive a TEACH Grant before you sign an Agreement to Serve (ATS) for that year.

The counseling session consists of a TEACH Grant Overview and three additional sections that cover the following topics in detail:

• Your TEACH Grant ATS
• Your Service Obligation
• Conversion of a TEACH Grant to a Loan.

Complete TEACH Grant Counseling

No, TEACH Grant Initial and Subsequent Counseling must be completed in one session; it takes approximately 20 minutes to complete.

The TEACH Grant ATS is a legally binding document that:

• Explains your TEACH Grant service obligation;
• Explains the conditions under which your TEACH Grant may be converted to a Direct Unsubsidized Loan;
and
• Describes the repayment terms and conditions that apply if your TEACH Grant is converted to a loan.

Complete TEACH Grant ATS

Your school will tell you what loans, if any, you're eligible to receive. If you have questions regarding your loan eligibility, the next steps in the processing of your loan, when the loan will be disbursed (paid out), or no longer wish to receive the loan, contact your school's financial aid office.

Once you receive the first disbursement of your loan, contact your loan servicer with repayment questions.

Contact your loan servicer if you have questions regarding loan repayment, deferment, or forbearance.

Contact your loan servicer with questions about repayment.

Direct Loan borrowers are assigned a loan servicer after the first disbursement of their loan. Your loan servicer will contact you directly after you receive your first disbursement.

Contact your loan servicer with questions about repayment.

Your loan servicer may be displayed after you log in to this web site or you can visit StudentAid.gov to find your loan servicer(s).