How to apply for a Federal Direct Loan
To apply for a Federal Direct Loan you must complete the FAFSA. You can apply for a loan if you are enrolled at least half time and meet other eligibility
requirements set by the government.
We offer Federal Direct Loans as part of your award package. You may accept, reduce,
or turn down (via E-Services) the amount you wish to borrow.
E-sign the Federal Direct Loan Master Promissory Note (MPN)
To receive a Federal Direct Loan you must complete a Federal Direct Loan Electronic
Master Promissory Note (eMPN) before we can give you your money. Once you complete
the Federal Direct Loan eMPN and the loan is in your student account, you do not have
to sign a Federal Direct Loan eMPN again (it is valid for 10 years).
To complete the eMPN, go to www.studentloans.gov. You will need your U.S. Department of Education PIN to sign your eMPN electronically.
After you sign your eMPN, they will notify us electronically. We cannot give you your
loan money until you complete your eMPN and, if this is your first loan, complete
Federal Direct Loan Entrance Counseling
If you are taking out your first loan, the federal government requires you to have
loan counseling before you receive your money. Entrance Counseling explains how the
student loan program works, including repaying and interest, and outlines your rights
and responsibilities. You will check your knowledge by answering questions at the
end of each section.
You must answer all the questions correctly to complete Entrance Counseling successfully
and get your loan. Go to www.studentloans.gov for your counseling. You will need your U.S. Department of Education PIN for Entrance
Counseling. After you complete Entrance Counseling, the results are sent electronically
to UHCL. We recommend you print a copy of the rights and responsibilities page for
Receiving Loan Funds
When we hear from the Federal Direct Loan Processor that they have a valid eMPN on
file for you and you have completed Entrance Counseling, your Federal Direct Loan
is automatically credited to your student account if you meet the other Federal eligibility
requirements (starting about a week before classes begin each semester).
Request Reduction or Cancellation of Federal Direct Loans
You can reduce or cancel your Federal Direct Loan offer. You may do so in E-Services,
or you may notify us in writing (via email or snail mail).
Federal Direct Loan Limits
The Federal government limits the amount of money you can borrow. If you have filed
the FAFSA, we award you the maximum amount eligible under such limits. The annual
limit applies to the most you can borrow in one academic year, while the total limit
applies to the maximum a student can borrow in a lifetime. If you are not eligible
for subsidized loans, which are need-based, those amounts can be added to unsubsidized
loan amounts shown below.
Annual and Total Limits for Federal Direct Loans
|Junior or Senior
|Junior or Senior
|Graduate and Professional Students
Federal Direct Loan Exit Counseling
The federal government requires that you go through Exit Counseling prior to leaving
or graduating from college. To complete Exit Counseling, go to www.studentloans.gov. You will need your U.S. Department of Education PIN to complete Exit Counseling.
During Exit Counseling you will learn about the circumstances under which you can
reduce or postpone your payments, and how to get the necessary forms. Even though
you have a six-month grace period, the Exit Counseling process will help you set up
a repayment plan, a direct withdrawal and a payment date.
Federal Direct Loan Repayment
Repayment of Federal Direct Stafford Loans begins 6 months after you graduate or are
not enrolled at least half time. You can estimate your repayment schedule at https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action.
Additional Federal Direct Loan Information
Contact Federal Direct Loan Servicing Center at www.studentloans.gov or call them at (800) 848-0979, TTY (800) 848-0983.