Go to ESU!

Give Online

Financial Aid

ESU Quicklinks

Financial Aid Links

• Announcements
• Consumer Information
• Cost of Attendance
• Direct Lending
• Early Financial Aid Estimator
• Enrollment Status
• Exit Loan Counseling
• Financial Aid Checklist
• Financial Aid Programs
• Financial Aid Staff
• Forms and Information
• Graduate Studies and Research
• Helpful Links
• Parent Loan for Undergraduate Student (PLUS)
• Priority Dates
• Satisfactory Academic Progress Policy
• Scholarships and Grants

Direct Lending

STUDENT AND PARENT LOANS

Beginning with the Summer 2009 session, Emporia State University will participate exclusively in the Federal Direct Stafford and PLUS loan program.

Due to this change, ALL students, both continuing and first time, must complete two very important steps in order to receive future loan funding for the Stafford or PLUS loan program.  

First, students seeking a Federal Direct Loan must complete a new Master Promissory Note (MPN) for the Federal Direct Loan.  The parent of a dependent undergraduate student who is seeking a Federal Direct Parent PLUS Loan must complete a Master Promissory note for the PLUS loan.  Students and/or parents will use their individual federal PINs (created when you first apply for financial aid via the Free Application for Federal Student Aid - FAFSA) for identification purposes in completing these steps.  Federal Direct Loan MPNs may be completed online at:

              https://dlenote.ed.gov/empn/index.jsp

Funds for the Direct Stafford and PLUS loan program come directly from the Federal Treasury and will assure continued loan access for Emporia State University students.  Origination fees of 2.0% for Direct Stafford Loans and 4% for Direct PLUS loans will be charged to all borrowers.  An up-front interest rebate of 1.5% is offered for borrowers as a repayment incentive.  In order to keep the up-front interest rebate, a borrower must make their first twelve monthly payments on time.  If this requirement is not met, the amount of the rebate will be added back to the loan.

Second, Entrance Loan Counseling must be completed by all students (even if entrance loan counseling was previously completed for the prior loan program) both for the Federal Direct Stafford Loan and Federal Direct Graduate PLUS loan.  This step can be completed at:

              https://www.dl.ed.gov/borrower/EntrCounselingStart.do?cmd=initializeContext

There is currently no requirement for Entrance Loan Counseling for parents borrowing from the Federal Direct PLUS Loan for Undergraduate Students. 

Benefits of the Federal Direct Loan Program:

  •  Federal funds from the prior loan program (FFELP) in which ESU participated were disbursed through private lenders (such as Bank of America, US Bank, Sallie Mae, etc.)   Many lenders are inundating our students with direct to consumer marketing that tends to be very confusing and overwhelming.  The Direct Loan Program is funded directly by the Federal Government, eliminating the middle man and the confusion.
  • There are more repayment plans through the Direct Loan Program, specifically the income contingent plan.  If a student does not repay their loans in 25 years, the government forgives the balance of the loan.  In addition, the interest never exceeds 10% of the loan principle.
  • Direct Lending has the new Public Service Loan Forgiveness program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payments for people working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c) (3) organizations.
  • The Direct Loan program is fully integrated with the federal financial aid process, simplifying the administration and oversight of the government funds.  Emporia State University already has the software and business process in place to administer this program due to the other federal programs we administer.
  • Students will only have to track their loans with one lender from this point on instead of multiple lenders.
  • Reconciliation of the Federal Direct Loan program is required, and ensures that the students are receiving the funds and are only repaying what they actually received.
  • Benefits advertised are part of their Master Promissory note, unlike the benefits advertised with the FFEL program which are not part of the FFEL promissory note.  Borrowers are assured to receive borrower benefits only if they are part of the signed promissory note.
  • Loans can be sold in FFEL, negating their borrower benefits.  Loans are never sold in the Direct Loan program.
  • Direct Loans can be consolidated in the Direct Loan program.

 

When award letters are sent to students, each new and returning student will have to sign a new Master Promissory Note as directed above.  The Direct Loan Master Promissory Note can be completed at any time and students do not need to wait until they are officially awarded a Direct Loan.

 

Last Updated May 27, 2009