A Federal student loan is money you borrow and must pay back with interest. If you decide to take out a loan, it is important to understand that a loan is a legal obligation that you will be responsible for repaying with interest.
To apply for a Federal Student Loan, you must submit a Free Application for Federal Student Aid (FAFSA). The Expected Family Contribution (EFC) number generated by your FAFSA application, along with your grade level, will determine your eligibility for a Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan. Along with completing the FAFSA application, students must also be admitted as a degree-seeking students and be meeting all aspect of Satisfactory Academic Progress.
An origination fee required by the federal government will be applied to each Direct Loan you borrow. The origination fee is a percentage of the amount of each loan you receive and is subtracted from the amount of the loan you borrow. This means the loan money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received. For more information about current loan origination fees, please visit the Federal Student Aid website.
To learn more about Federal Student Loans and how to manage your debt, visit https://www.ecmcsolutions.org.
Student Loan Options
- Federal Direct Subsidized and Unsubsidized Loans
- Federal Direct Parent PLUS
- Private Loans
- Federal Student Loan Repayment and Consolidation
Loan Basics
- Interest Rates and Fees
- Master Promissory Notes
- Entrance Counseling
- Exit Counseling
- NSLDS – The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s (ED’s) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.
Apply for Federal Direct Student Loans
(e.g. Subsidized, Unsubsidized, and Parent PLUS)
Step 1. Complete the Free Application for Federal Student Aid (FAFSA)
Step 2. Complete Entrance Counseling
Step 3. Complete Master Promissory Note (MPN)
It is important that all borrowers understand there are borrower rights and responsibilities that must be followed.
