Borrowing Direct Loans
Information on this page about Federal Direct Loans
- How to Apply for Federal Direct Loans
- What is an Electronic Master Promissory Note (E-mpn)?
- PLUS Loans
- What does participation in the Federal Direct Loan Program mean to you as a student borrower?
- Consolidation
- Partial Enrollment
- What is the difference between a Subsidized and an Unsubsidized Loan?
- How much can I borrow with Direct Student Loans?
How to Apply for Federal Direct Loans
On your my.evergreen account, you may accept or decline the full amount of your loan eligibility. If you are offered a Federal Direct Subsidized and/or Unsubsidized Loan, and want to accept less than the full amount offered, please let us know by completing and submitting the Direct Loan Request Form.
2011-2012 Direct Loan Request Form (PDF)
If you are accepting a Federal Direct Subsidized or Unsubsidized loan for the first time, you will need to complete Direct Loan Entrance Counseling and an Electronic Master Promissory Note:
When you accept your first Direct Student Loan, you will need to complete a NEW Direct Loan Master Promissory Note as well as Direct Loan Entrance Counseling. This master note will be good for 10 years, after which you'll need to complete a new note. More information about how to complete an mpn and entrance counseling wll be sent to you via your Evergreen email address at a later date.
What is an Electronic Master Promissory Note (E-mpn)
To take out a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). The MPN provided online by the Department of Education online at the StudentLoans.gov website is called an Electronic Master Promissory Note or E-mpn. The E-mpn is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).
To complete an E-mpn, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site. A parent borrower must also request a PIN number from the PIN site to use when completing a PLUS E-mpn.
In most cases, once you've submitted the E-mpn and it's been accepted, you won't have to fill out a new E-mpn for future loans you receive. Unless your school does not allow more than one loan to be made under the same E-mpn, you can borrow additional Direct Loans on a single E-mpn for up to 10 years. If you are applying for a Direct PLUS for the first time as a graduate/professional student, you'll need to complete and sign a PLUS E-mpn that is separate from the one that you use for your Direct Subsidized and Unsubsidized Loans.
You'll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your E-mpn, including the loan amount, fees, and the expected disbursement dates and amounts.
Complete your entrance counseling and E-mpn
You will sign in using the same PIN you used to complete the FAFSA.
Note: If you completed Direct Loan Entrance Counseling and received a Direct Loan through Evergreen during a previous quarter, you do not have to perform it again, and if you have received a Direct Loan at a previous school, you may not need to complete it again either.
PLUS Loans cannot be accepted online.
The Parent Loan for Undergraduate Students (PLUS) is a Federal Educational Loan. The parent is the borrower of this loan. It is part of the student's financial aid package and students are required to meet Satisfactory Academic Progress requirements. The amount that can be borrowed is based on the cost of attendance less any other financial aid awarded.
More information about Parent PLUS Loans
Eligibility
Parent PLUS borrowers must be either: the biological parent, adoptive parent, or stepparent of the student. Stepparent eligibility is limited to those whose income and assets are taken into account when calculating the student's Expected Family Contribution (EFC). Non-custodial parents may also borrow PLUS loan (a different PLUS-only application is required).
Applying for PLUS Loans
Borrowers must sign a master promissory note (MPN). This can be done online: http://www.studentloans.gov. Parents must complete and submit to us the PLUS Loan Request Form found below. Graduate students applying for the Grad Plus Loan use the Graduate PLUS Loan Request Form, where no parental information is needed.
2011-2012 Parent PLUS Loan Request Form (PDF)
2011-2012 Graduate PLUS Loan Request Form (PDF)
More about applying for Federal Direct Loans
Question: What does participation in the Federal Direct Loan Program mean to you as a student borrower?
Answer: Some things will be familar
- You will still fill out the FAFSA every academic year to apply for Federal Direct loans.
- There will still be two major student loan programs:
The Direct Subsidized Loan - is like the Federal Stafford Subsidized Loan you may have previously borrowed and is for students with demonstrated financial need, as determined by federal regulations. No interest is charged on subsidized loans while you are in school at least half-time, during your grace period, and during deferment periods, and
The Direct Unsubsidized Loan - is like the Federal Stafford Unsubsidized Loan you may have previously borrowed and this loan is not based on financial need. Interest will be charged during all periods of this loan. - Parent loans will also still be available under the Direct PLUS Loan program. These loans are low-interest loans available to parents of dependent students. Interest is charged during all periods and repayment begins 60 days after the last disbursement of the loan for the academic year.
And some things will change
- You will no longer have to choose a lender from which to borrow your loan. You will borrow directly from the Federal Department of Education and have a single contact - the Direct Loan Servicing Center - for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
Consolidation
For borrowers who want to combine different eligible Federal student loans into one loan, Direct Consolidation Loans will be available.
More information about Direct Consolidation or call 1-800-557-7392.
I intend to enroll part-time. Can I still get a loan?
To be eligible, you must be a regularly enrolled (degree-seeking) student attending at least half time (not a special admit). Halftime enrollment is defined as at least 6 credits for an undergraduate. If you are a Master of Public Administration or Master of Environmental Studies student, 4-credit enrollment will make you eligible for halftime aid. Master in Teaching students have no part-time enrollment option.
What is the difference between a Subsidized and an Unsubsidized Loan?
Subsidized and unsubsidized loans both accrue interest while the student is enrolled, but in the case of the subsidized loan, this interest is paid by the federal government while you are in school and during the deferment period. Students with sufficient financial need will be offered a subsidized loan.
If you borrow unsubsidized loan, you will be responsible for the interest on your loan. The interest may be paid during school or added to the principal (capitalized) when repayment begins. Students with limited financial need may be offered funds from both the subsidized and unsubsidized loan programs in amounts that total the student's annual eligibility.
Note: If your interest is capitalized, it will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.
How much can I borrow with Direct Student Loans?
The table below shows maximum allowable annual and aggregate amounts based on grade level and student status.
The amount you can actually borrow is determined by several factors including your budget for the cost of attending and other aid you are being offered. Based on your award offers, you may not always qualify for the maximum Stafford Loan amount. Please refer to your financial aid offers at my.evergreen.
Annual Loan Limits for Undergraduate and Graduate/Professional Students
| Dependent Students (excluding students whose parents cannot borrow PLUS) |
Base Amount Subsidized and Unsubsidized | Additional Unsubsidized Loan Amount | |
|---|---|---|---|
| Loans first disbursed before 7/1/2008 | Loans first disbursed after 7/1/2008 | ||
| First-Year Undergraduate | $3,500 | 0 | $2,000 |
| Second-Year Undergraduate | $4,500 | 0 | $2,000 |
| Third-Year and Beyond Undergraduate | $5,500 | 0 | $2,000 |
| Independent Students (and students whose parents cannot borrow PLUS) |
Base Amount Subsidized and Unsubsidized | Additional Unsubsidized Loan Amount | |
| Loans first disbursed before 7/1/2008 | Loans first disbursed after 7/1/2008 | ||
| First-Year Undergraduate | $3,500 | $4,000 | $6,000 |
| Second-Year Undergraduate | $4,500 | $4,000 | $6,000 |
| Third-Year and Beyond Undergraduate | $5,500 | $5,000 | $7,000 |
| Graduate and Professional Students | Base Amount Subsidized and Unsubsidized | Additional Unsubsidized Loan Amount | |
| Loans first disbursed before 7/1/2008 | Loans first disbursed after 7/1/2008 | ||
| $8,500 | $12,000 | unchanged: $12,000 | |
Aggregate Loan Limits
(the total amount you may borrow during your academic career)
| Subsidized/Unsubsidized Aggregate Limits | |
|---|---|
| Dependent Students (excluding students whose parents cannot borrow PLUS) |
$31,000 (maximum $23,000 subsidized) |
| Independent Students (and students whose parents cannot borrow PLUS) |
$57,500 (maximum $23,000 subsidized) |
| Graduate and Professional Students | $138,500 (maximum $65,500 subsidized) |
Independent students are eligible to borrow more because they are paying for college without eligibility for their families to apply for the PLUS Loan.
Information about Dependency Status
You can get your cumulative loan history at NSLDS. You need your FAFSA pin for accessing this information. If you don't have one yet, or have forgotten it, go to www.pin.ed.gov now.