Federal Direct Loans
All student loans require that the borrower be enrolled in a minimum of six credits.
- How do I apply?
- Do I have to complete Loan Entrance Counseling and a Master Promissory Note?
- What are the benefits of the Federal Direct Loan Program?
- Is there a fee charged for these loans?
- What is the interest rate on these loans?
- What happens to the Stafford/PLUS Loans I borrowed in previous years?
- How much time will I have to repay my loan and how much will I have to pay each month?
- How will repayment be handled if I have both FFEL and Direct Loans?
- Where can I find information about who services my federal student loans?
- Will I still be able to borrow alternative loans through a lender of my choice?
Students must complete the Free Application for Federal Student Aid (FAFSA). (Note: The student must file the FAFSA in order for the parent to apply for the Federal Direct Parent PLUS Loan.)
Once a student has been offered a Federal Direct Loan by Minot State University, the students should accept their Federal Direct Loans through their Campus Connection.
Do I have to complete Loan Entrance Counseling and a Master Promissory Note (MPN)?
All first time borrowers of a Federal Direct Loan or Federal Direct Parent Plus Loan must complete a Master Promissory Note (MPN). To complete the MPN for the Federal Direct Loan Programs, visit the StudentLoans.gov. If necessary, you may request a duplicate of your pin at www.pin.ed.gov
What are the benefits of the Federal Direct Loan Program?
There a several benefits to the Federal Direct Loan Program. For detailed information, visit the U.S. Department of Education's Federal Direct Loans web site.
- A guaranteed source of funding
- A lower interest rate on PLUS Loans
A single point of service for repayment
- Additional repayment options for students and interest rate reductions for on-time payment
- The Public Service Loan Forgiveness Program
Yes. The Department of Education charges an origination fee on all loans. The loan fee is an expense of assuming a Direct Loan. The loan fee is a percentage of the amount of each loan you receive and is subtracted proportionately from each loan disbursement.
Loans with a first disbursement date on or after July 1, 2010 will have a loan fee of 1%. The loan fee for all Direct PLUS Loans is 4%. The specific loan fee that you are charged will be included in a disclosure statement you will receive after the first disbursement of your loan
What are the interest rates on these loans?
Visit The Department of Education web site here for detailed information on the interest rates for Direct Subsidized, Unsubsidized and Parent Plus Loans.
What happens to the Stafford/PLUS Loans I borrowed in previous years?
Stafford Loans from previous aid years should remain in deferment as long as the student is enrolled at least half-time. PLUS Loan borrowers may request deferment if the student is enrolled at least half-time.
Visit StudentLoans.gov for information on loan repayment including the new Income Based Repayment Plan.
How will repayment be handled if I have both FFEL and Direct Loans?
Payment on FFEL/Direct Loans are made by the borrower to their federal loan servicer(s) or lender(s). Borrowers that have multiple loan servicers for their loans, will have multiple payments to make. Borrowers can opt to consolidate all of their federal student loans (both FFEL and Direct Loans) into one loan. For more information about Federal Consolidation Loans, visit the Federal Direct Consolidation Loan web site.
Where can I find information about who services my federal student loans?
Borrowers can find detailed information about their federal student loans, including their loan servicers, on the National Student Loan Data System (NSLDS). Borrowers will need their Federal Student Aid PIN available at www.pin.ed.gov to access their federal student loan records. Direct Loans processed by Minot State University are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
Borrowers can also get contact information for their servicer by visiting the Federal Student Loan Servicers web site.
Will I still be able to borrow alternative loans through a lender of my choice?
Yes. Students may continue to pursue alternative loans with a lender of their choice, however it is strongly recommended students apply for federal student aid first. For more information, visit our Alternative Loans page.