Direct Loan Questions and AnswersWhat are the differences between the Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP)?
Schools have generally participated in either the FFELP or Direct Loan Program. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFELP loan came from a bank, credit union, or other lender that participated in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.How can I get a Direct Loan?
For a Direct Loan, you must fill out a Free Application for Federal Student Aid (FAFSA). After your FAFSA is processed, MSU-Northern will review the results and will inform you about your loan eligibility. You must also sign a master promissory note, a binding legal document that lists the conditions under which you're borrowing and the terms under which you agree to repay your loan. Direct Loan Entrance Counseling is also required.I have been awarded a Federal Direct Loan through the Financial Aid Office at MSU-Northern, How do I apply for a Federal Direct Loan?
If you have received your Award Letter Notification and responded by accepting all or a portion of the loans offered, you must go to the Financial Aid MyAward page and complete Federal Direct Loan Entrance Counseling and a Federal Direct Loan Master Promissory Note (MPN).What if I have already borrowed a Federal Direct Loan at another institution?
Good news...if you've already completed an MPN at another institution you may not be required to complete a new promissory note. The Financial Aid Office will notify you if we need an updated MPN on file.What if I don't want to change lenders?
All students at MSU-Northern will be required to borrow their federal funds through the Direct Loan Program. Due to new Federal Regulations the FFELP lending program is no longer an option for student borrowers. The only way to receive federal loan funds is to borrow directly from the U.S. Department of Education.Can I combine my federal loans if I have multiple lenders?
Yes, you can consolidate all your federal loans through the Federal Direct Loan Consolidation program. Private lenders have discontinued their loan consolidation program.Top