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FIRST STEPS FOR ACCEPTING A FEDERAL DIRECT LOAN

Entrance Counseling and Master Promissory Note (MPN) Procedures

BW students planning to borrow a Federal Direct Loan must complete entrance counseling and submit an electronic Master Promissory Note (eMPN). These steps should be followed by students who have received an offer letter from the financial aid office.

You need your FSA ID to complete this process. Each requirement takes approximately 15-20 minutes to complete. Be sure you have enough time to complete the process in a single session. You may not have the option to save your work.

Step One: Complete Entrance Counseling

  1. Visit the FSA website.
  2. Click the "log in" button.
  3. Sign in with your FSA ID.
  4. Click "complete entrance counseling" and follow the instructions.

Step Two: Complete the Master Promissory Note (MPN)

  1. Visit the FSA website.
  2. Click the "log in" button.
  3. Sign in with your FSA ID.
  4. Click "Sign Master Promissory Note" and follow the instructions.

SUBSIDIZED VS. UNSUBSIDIZED FEDERAL DIRECT LOANS

Federal Direct Subsidized Loans

  • Available for degree seeking students attending at least half-time and maintaining satisfactory academic progress (SAP).
  • Student must be registered for classes and file necessary financial aid applications.
  • Eligibility is based on financial need.
  • Entrance counseling is required of all first time loan borrowers.
  • Repayment begins six months after a student graduates, withdraws or drops below half-time status.
  • Borrowers may choose from several repayment options.
  • An origination fee will be deducted from each loan prior to disbursement.
  • The subsidized interest is paid by the federal government while the student is in school.

Federal Direct Unsubsidized Loans
Student must meet all terms of Federal Direct Subsidized Loan except:

  • The loan is not need-based.
  • The federal government does not pay the interest on your behalf.

FREQUENTLY ASKED QUESTIONS ABOUT FEDERAL DIRECT LOANS

Repayment Plan Overview

 Non-Consolidation LoansConsolidation Loans
Standard repayment plan* Repayment up to 10 years
* Lowest total interest paid
* Automatic payment plan if payment plan is not chosen
* Repayment up to 10 to 30 years based on total education indebtedness
Graduated repayment plan* Repayment up to 10 years
* Payments start out low, then increase every two years
* Beneficial if income is low now, but may steadily increase
* Repayment up to 10 to 30 years based on total education indebtedness
* Payments start out low, then increase every two years
* Beneficial if income is low now, but may steadily increase
Extended repayment plan* Repayment up to 25 years
* Must have more than $30,000 in Direct Loans
* Monthly payment will be lower than Standard Repayment
* Will pay more on loan because of the interest that accumulated during the longer repayment period.
 
Income contingent repayment* Repayment up to 25 years
* Monthly payments based on annual income, family size, and total amount of Direct Loans
* Unpaid portion of loan is forgiven, but you may have to pay income tax on the amount that is forgiven
 

Who do I call about loan repayment questions?
Visit Federal Student Aid for a list of toll-free numbers for Direct Loan servicers.

How can I keep track of my Federal Direct Loans?
Knowing who is servicing your Federal Student Loans is critical in shaping your financial future. Visit the Student Aid website. Federal Student Aid provides a central database for student aid and allows students access to view information from schools, guaranty agencies, the Direct Loan program and other programs; this is a valuable tool in managing your federal student loan information. Managing your debt is your responsibility, and this website is a vital tool for keeping track of your financial obligations.

RESOURCES

Federal Direct Loan change form - This form is to be completed by students who:

  • Have received a financial aid offer with Direct Loan eligibility and
  • Who wish to decline or reduce the Federal Direct Loan(s) that have been offered to them.

Repayment options - This is the Department of Education's information on repayment options.

Repayment calculator - This tool calculates an estimated monthly payment.

Grade Level Advance Form -  This form is to be completed by undergraduate students who have advanced a grade level during the academic year and wish to apply for additional Federal Direct Student Loan. A link to the current year Grade Level Advance/Loan Request form is added to MyBW’s Forms page at the end of fall semester.

Contact Us

Financial Aid Office
Phone: (440) 826-2108
Fax: (440) 826-8048
Email: finaid@bw.edu

Federal ID Code

BW's Federal ID Code: 003014

Office Hours

Academic Year: Monday - Friday, 8:30 a.m. - 5 p.m.
Summer Hours: Monday - Thursday, 8 a.m. - 4:30 p.m.; Friday, 8 a.m. - 12 p.m.
(May 10 - Aug. 6, 2021)