Step 1—Sign and return your Financial Aid Award. You may indicate any decreases in the amount you want to borrow on your Award.

Step 2—All first time borrowers will need to complete a Master Promissory Note (MPN).

Step 3—All first time borrowers will need to complete Entrance Counseling.

You are required to complete Entrance Counseling and a MPN before funds can be disbursed to your student account.

The Federal Direct Loan Program is a loan program with funds being provided directly from the Department of Education. Congress has agreed to a one year extension to the Subsidized interest rate of 3.4% through June 30, 2013. Unsubsidized loans have a fixed interest rate of 6.8%. Origination and guarantee fees of up to 1.0 percent will be deducted from the loan amount you have accepted.

The Federal Direct Loan comes in two forms:

• Direct Subsidized Loan—This loan is need-based; interest does not accrue while you are enrolled at least part time. Payment of principal is deferred while you are enrolled at least half-time and for six months after your enrollment drops below half-time status.
• Direct Unsubsidized Loan—This loan is non-need based; payment of the principal is deferred while you are enrolled at least half-time and for six months after your enrollment period drops below half-time status. Interest on this loan begins accruing at the time of disbursement. Currently, the interest on an unsubsidized loan is fixed at 6.8% while you are enrolled in school. You have the option of making quarterly interest payments while in school or allowing the interest to be capitalized (added to the principal).

Loan Limits: The maximum (combined Subsidized and Unsubsidized) annual limits for these loans are as follows: