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2010-11 Academic Year
If you have been awarded a Federal Direct Loan and your award package shows your eligibility, the following steps will help you complete the application process:
Understanding Federal Direct Loans
There are two types of Federal Direct loans. Subsidized loans neither require repayment nor accrue interest while you are enrolled at least half time. Unsubsidized loans can be deferred while in school, but interest accrues to the borrower and must either be paid or capitalized. The student does have the option to make interest-only payments while they attend college.
Effective July 1, 2010, the interest rate is fixed at 4.5% for subsidized loans and 6.8% for unsubsidized loans. The standard maximum repayment term is 10 years with a $50 minimum monthly payment. Origination and Guarantee fees may be deducted from each disbursement unless your lender pays this on your behalf.
| Year in college | Dependent students | Independent students |
| Total loan limit | Subsizided loan limit | Total loan limit | Subsizided loan limit |
| 1st year | $5,500 | $3,500 | $9,500 | $3,500 |
| 2nd year | $6,500 | $4,500 | $10,500 | $4,500 |
| 3rd year | $7,500 | $5,500 | $12,500 | $5,500 |
| 4th year | $7,500 | $5,500 | $12,500 | $5,500 |
| 5th year | $7,500 | $5,500 | $12,500 | $5,500 |
Step 1: Complete Counseling Requirements
Note: After completing Step 1, please return to this page and complete Step 2.
The Federal Direct Loan Program has counseling requirements. If you are a first-time borrower of the Federal Direct Loan you will be required to complete Direct Loan entrance counseling  online.
Step 2: Obtaining Your Loan
Complete your Master Promissory Note (MPN). You will need the following information:
- Your Federal Student Aid PIN
- Names and complete addresses of the two people you will use as personal references. One reference should be a parent or guardian if living. (References cannot have the same address.)
- Your driver's license number
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