Students can visit this page to access their loan repayment information, find their lender’s/servicer’s contact information, and complete the Federal Direct Loan Exit Counseling.
Federal Direct Student Loans
Students who are borrowing Federal Direct Loans for the first time at MSOE must complete both Entrance Counseling and a Master Promissory Note. Please scroll down this page after the types of loans to learn more about these two mandatory steps.
To be eligible for Federal Direct Loans a student must meet the following eligibility criteria:
- Be enrolled at least 1/2 time (6 credits undergraduate or 3 credits for graduate).
- Not be in default on another student loan.
- Be a U.S. citizen or eligibility non-citizen.
- Maintain Satisfactory Academic Progress.
- Subsidized Loans Only: Demonstrate financial need as determined by the FAFSA.
Types of Direct Loans
Federal Direct Subsidized Loan
Need-based loan with a fixed interest for the life of the loan. The 2019-2020 interest rate is 4.53% with a 1.062% origination fee. No interest accrues while the student is enrolled at least half-time. Repayment begins six months after the student ceases half-time enrollment. To view borrowing limits and to learn more about this loan, please visit the Dept. of Education’s website.
Federal Direct Unsubsidized Loan
Non-need based loan with a fixed interest for the life of the loan. The 2019-2020 interest rate is 4.53% with a 1.062% origination fee. Graduate interest rates are 6.08%. Interest accrues while the student is enrolled. Repayment begins six months after the student ceases half-time enrollment. To view borrowing limits and to learn more about this loan, please visit the Dept. of Education’s website.
Interest Rates and Origination Fees
|Loan Type||Borrower Type||Fixed Interest Rate (For Loans disbursed between 7/1/2019 - 6/30/2020)||Origination Fee (For Loans originated between 10/1/2018 - 9/30/2019)||Origination Fee (For Loans originated between 10/1/2019 - 9/30/2020)|
|Direct Unsubsidized Loans and Direct Subsidized Loans||Undergraduate Student||4.53%||1.062%||1.059%|
|Direct Unsubsidized Loans||Graduate Student||6.08%||1.062%||1.059%|
Final Steps to Complete the Direct Loan Process
First-time borrower at MSOE who wish to utilize the Federal Direct Loan Program, are required to complete both steps below. Students will need their Federal Student Aid ID to log in to complete both steps. Both steps will only need to be completed once while attending MSOE. New students can complete both steps after April 1 for the upcoming academic year.
Step 1: Complete the Federal Direct Loan Entrance Counseling Online
Students are asked to review the terms and conditions of the Direct Loan program and then are required to complete an exam which asks a series of questions related to the loan program, repayment, the student’s responsibilities as a loan borrower, etc. It is important for the student to complete this process to ensure the understanding of borrowing federal funds.
Step 2: Complete the Federal Direct Loan Master Promissory Note Online
Students are required to sign a Federal Direct Loan Master Promissory Note (MPN). The MPN is a signed contract between the student and the U.S. Department of Education stating that the student understands the terms and responsibilities of borrowing from the Federal Direct Loan program and agrees to the repayment terms and conditions. All first time MSOE Federal Direct loan recipients who have received a Financial Aid Award Offer and have accepted the Federal Direct Loan(s) are required to complete the online Federal Direct Loan Entrance Counseling and to sign a Federal Direct Loan Master Promissory Note prior to the school receiving the funds.
Federal Loan Processing Overview
- The U.S. Department of Education will notify MSOE electronically after students have completed entrance counseling and the MPN.
- Students will receive a disclosure statement from the U.S. Department of Education providing specific information about their loan, including loan amount, fees and the expected disbursement dates.
- Students’ direct loans must be accepted and both steps above must be completed to ensure that the loan disbursement will be credited to their bill each quarter.
- The loan disbursement will be posted to the student account during the 2nd week of each quarter. Once posted to their student account, students will be notified via MSOE email when their loan funds have been disbursed. Federal student loans will have an origination fee which will be subtracted from the amount awarded so the amount on the bill will be less than the amount on the financial aid award offer.
- Students must complete the steps above prior to or during the academic year. Per federal regulations, loan applications cannot be processed after the academic year ends or if the student ceases to be enrolled at least half-time.
- For a full review of the terms and disclosures regarding the Federal Direct Subsidized and Unsubsidized Loans, please read the linked Plain Language Disclosure.