Questions
Am I eligible for a student loan? How do I apply?
How is the Master Promissory Note (MPN) processed?
When will my Stafford Loan be disbursed to my school? How will the school receive the funds?
If I don't need all of the loan, can I cancel it?
I am planning to transfer to another school at the end of the semester; can my loan funds go directly to the new school?
How can my parents get a Federal PLUS loan?
I'm a graduate student. How can I get a Federal PLUS loan?
I have heard that my loan may be forgiven under certain circumstances. How do I qualify?
The Master Promissory Note (MPN) asks that I choose a lender. Which lender should I choose?
How do I determine which lenders participate in the FFEL Program? Are there any Credit Unions that participate?
What should I do if I had a previous loan and my lender is no longer on the list of participating lenders?
What if I don't like any of the lenders listed on the HESC.org?
If I have previously borrowed and I want to choose a different lender and fill out a new MPN, would I have to make separate payments to each lender when the loans mature? If so, would I be able to consolidate my loans?
In the case of a Federal PLUS Loan, does the parent have to choose the same lender as the student chose for the Federal Stafford loan?

Am I eligible for a student loan? How do I apply?

Your school or college will determine your eligibility for a Federal Stafford Loan. The first step in applying is to fill out a Free Application for Federal Student Aid (FAFSA), or the renewal FAFSA. The FAFSA application asks for information about family size, income, assets, etc. and you must indicate your interest in being considered for a student loan on the FAFSA.

After the FAFSA is processed, you will receive a Student Aid Report, which lists your expected family contribution. The school will evaluate your information, and let you know of your loan eligibility. The actual amount you are able to borrow depends upon many factors, such as the total cost to attend school, any other financial assistance you might be receiving, if any other family members are college students, etc. Your loan amount may not exceed the Federal Stafford Loan annual loan limits established by law.

If eligible, you must complete a Master Promissory Note (MPN).
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How is the Master Promissory Note (MPN) processed?

Once you have filed the Free Application for Federal Student Aid (FAFSA) and indicated to your school that you are interested in obtaining a Stafford Loan, the school will complete a school certification and send it to HESC. Most schools will send the school certification electronically. HESC will process the school certification and instruct the student to go to the HESC web site to complete an electronic Master Promissory Note (e-MPN). The student then completes the MPN. It is matched up with the school certification and the loan is guaranteed.

When you complete your MPN, you must indicate the name of the lender you wish to borrow through. If you are an undergraduate and have borrowed a previous loan under the Federal Family Education Loan (FFEL) program, you should use the lender you previously used, as long as they are still participating in the program. If this is your first loan, you may choose any participating lender.

The MPN is valid for 10 years from the date it is originally signed. If you are NOT a first-time borrower, and you have filled out an MPN before, you may not be required to complete a new MPN if your school uses the serial MPN process. The school will use the information on your Student Aid Report and complete a school certification on your behalf. Your loan will be guaranteed by HESC based upon the school certification. If the school does not participate in the serial MPN process, you must complete a new MPN to receive a loan for a different loan period.
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When will my Stafford Loan be disbursed to my school? How will the school receive the funds?

Your school provides anticipated disbursement dates on the school certification. The dates are based upon when the loan period starts and when it will end. The dates are a reasonable estimate of when the school expects the lender to disburse the funds, however many factors can affect the actual disbursement dates. Occasionally, the actual disbursement occurs after the dates listed. Questions about when your loan will be disbursed should be directed to your lender.

Your loan will be disbursed by Electronic Funds Transfer (EFT) or co-payable check. The funds go directly to the school for crediting to your account. If you do not owe the school all of the money, any remaining funds will be refunded to you.
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If I don't need all of the loan, can I cancel it?

If your loan has not been approved by HESC, you may contact your school and the school can cancel all or a portion of your loan. If the loan has already been approved and/or disbursed, you must contact your lender and the lender can cancel all or a portion of the loan.
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I am planning to transfer to another school at the end of the semester; can my loan funds go directly to the new school?

Loan funds which have already been approved by HESC for attendance at a particular school can only be used for that school. Any remaining loan disbursements must be canceled by the school or lender, and the new school must certify new loans for any remaining loan eligibility for the academic year.
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How can my parents get a Federal PLUS loan?

Parents of dependent students may be eligible to borrow under the Federal PLUS loan program. Visit About Parent PLUS Loans to learn more.
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I'm a graduate student. How can I get a Federal PLUS Loan?

Graduate/Professional students may be eligible to borrow under the Graduate/Professional PLUS Loan program. Visit About Graduate/Professional PLUS Loans to learn more.
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I have heard that my loan may be forgiven under certain circumstances. How do I qualify?

There are a few specific situations under which your loan may be forgiven. Visit Loan Forgiveness for the specifics of each program.
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The Master Promissory Note (MPN) asks that I choose a lender. Which lender should I choose?

Lenders participating in the FFEL program are subject to federal regulations and the interest rates, terms, and policies are generally the same. Some lenders may offer borrower benefits if you make on-time payments. You have the right to choose any lender that participates in the FFEL program; however, not all lenders participate with all schools. When completing an e-MPN, there is a drop down box which lists all of the lenders that participate with your school.
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How do I determine which lenders participate in the FFEL Program? Are there any Credit Unions that participate?

The list of participating lenders on HESC.org includes credit unions. Please note that some credit unions require that you be a member to take out a student loan. Click here for a list of participating lenders.
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What should I do if I had a previous loan and my lender is no longer on the list of participating lenders?

If your lender participated in the FFEL program when you first signed an MPN, but no longer participates in the program, or does not participate with your school, you must choose a new lender and complete another MPN. Your MPN is valid for ten years or as long as the lender remains in the FFEL Program.
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What if I don't like any of the lenders listed on the HESC.org?

You may visit the school's Web site or call the financial aid office and ask which lenders participate with the school. You may also visit lender Web sites to determine whether or not they participate in the FFEL program. HESC cannot guarantee a loan for a lender that does not participate in the program or have an agreement with HESC.
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If I have previously borrowed and I want to choose a different lender and fill out a new MPN, would I have to make separate payments to each lender when the loans mature? If so, would I be able to consolidate my loans?

If you borrow through two (or more) lenders, you would make separate payments to each lender when you enter repayment, unless you choose to consolidate your loans. Click here for more information on Federal Consolidation loans and repayment.
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In the case of a Federal PLUS Loan, does the parent have to choose the same lender as the student chose for the Federal Stafford loan?

Parents and students may choose different lenders.
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