How Do I Get a Student Loan?
So, your FAFSA has been filed, you’ve received your financial aid award letters, and decided on the college of your choice, what’s next?
Well, did you receive enough grant funds to cover your educational expenses? If not, are you going to utilize the Federal Stafford Loan program? If so, there’s a couple more requirements that you will need to complete in order to guarantee receipt of those loans.
All first time Direct Stafford Loan borrowers need to complete a Master Promissory Note (MPN) and Direct Loan Entrance Counseling. The MPN and Loan Entrance Counseling will explain your rights and responsibilities of borrowing the Subsidized and/or Unsubsidized Stafford loan. You will learn about the terms of the loan, such as: the interest rate, loan fees, grace period, repayment options, deferment, forbearance and loan consolidation. You should read this document carefully and understand what your obligation is when taking the loan(s). By signing this document (MPN) you are agreeing to repay the loan.
Both of these requirements can be completed at www.studentloans.gov. Your completion of these will be sent directly to the school you listed while completing them. Your school will request the loan funds from the Department of Education and will apply these funds towards your student account and any remaining monies will be refunded back to you.
Do you know what the total amount of interest you will be repaying on these loans is? Do you know how much you can afford to borrow? To help you answer these questions and determine your budget you can visit The Smart Student Guide to Financial Aid and the Federal Student Aid website.
So, as you can see, applying for the Stafford Loans is a fairly simple process. It is important to know that Stafford loan funds are to be used for educational expenses only. And it is very important to keep your lender informed of any name, address, telephone number and/or social security number changes.
The Center for College Planning offers funding options appointments in their Concord office. If you and/or your family would like to schedule an appointment, please call 888.7.GRADUATE ext. 119.
Please borrow wisely. Remember- these are loans that must be repaid!
Best of luck,
Lisa
thanks for explaining the process so clearly...i hate when people use initials and don't explain what they mean...thanks to you, i now understand what an MPN is!!!
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I wish kids would have more of a background in personal finance before being in the position to sign these documents. Not that I don't feel these documents are needed and that students shouldn't have to take loans, I feel both of these things make perfect sense, i just think many do it blindly and simply sign without actually understanding much of the text of an MPN or the terms used in the MPN. because it's not really an option of "if" they understand, it's a matter that they "need" to sign, so i think many do without fully understanding. if anything it's a case for why personal finance being taught earlier to kids would be a good thing, instead of being thrust into "needing" to understand it
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