William D. Ford Federal Direct Loan

Direct Loan Process

As a first-time borrower you will be required to complete a Federal Direct Loan Master Promissory Note (MPN). The MPN will be used for all Federal Direct Subsidized and/or Unsubsidized Loans that you may borrow. This means you will not have to fill out a new MPN each academic year.

When completing your MPN, you will be asked for your federal PIN number. This is the same number you used to electronically sign your FAFSA.If you need to request a PIN, visit the fedral PIN website at www.pin.ed.gov.

To complete your electronic MPN, go to Direct Loan MPN.

Once you have completed the MPN, be sure to complete your Loan Entrance Counseling if you have not already done so. Loan Entrance Counseling is a federal requirement and must be completed before your loan funds will be released to your student account. 

If you have previously borrowed a Federal Direct Loan and completed an MPN at another institution, you do not have to complete a new MPN. Simply contact our office and let us know.

However, if you borrowed through the FFELP Loan Program, we will not be able to process your Stafford Loan. Direct Loans are the same type of federal loan as a FFELP Loan, but they are processed in a different manner. Federal FFELP Loans require a lender and servicer to process the loan, unlike the Direct Loan which is processed directly through the Department of Education.

Direct Loan Rates

Federal subsidized loan rate: fixed 5.6% (starting July 1, 2009)

Federal unsubsidized loan rate: fixed 6.8%

There is a 1.5% origination fee, with a 1% upfront fee rebate. For more information visit the federal direct loan website.

If you need assistance, contact the St. Ambrsose University Financial Aid Office, 563/333-6314 or email.

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