Frequently Asked Questions - Loans
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. Most schools will send the school certification electronically.The student then completes the MPN.
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. 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.
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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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 for attendance at a particular school can only be used for that school. Any remaining loan disbursements must be canceled by the school, 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 Direct PLUS loan program. Visit
About Federal Direct PLUS Loans to learn more.
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I'm a graduate student. How can I get a Federal Direct Graduate/Professional PLUS Loan?
Graduate/Professional students may be eligible to borrow under the Graduate/Professional PLUS Loan program. Visit
About Federal Direct 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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