Federal Direct Student Loan Application Process

Federal Direct Student Loan Application Process

What is a Federal Direct Student Loan?

  • A loan made through the federal government in the student's name.
  • No credit worthiness required.
  • Low, fixed interest rates.
  • Multiple repayment options.
  • Borrowing limits per academic year.
  • Potential loan forgiveness based on certain criteria.
  • Get more information at intranet.bloomu.edu/aid/guide/loans

Who may apply for a Federal Direct Student Loan?

  • Undergraduate, graduate, & doctoral level students.
  • Must be enrolled in a degree level program at least half-time.
  • Must meet eligibility requirements at intranet.bloomu/aid/guide/eligibility.

How do I apply for a Federal Direct Student Loan?

PLEASE READ ALL INSTRUCTIONS.  It is important that you complete all steps to insure that your loan application is properly processed.  Failure to do so will delay the certification of your loan. 

STEP 1 - Complete Loan Entrance Counseling

Federal regulations require students to complete entrance counseling before the release of the first disbursement of their loan.  When a student borrows a loan, you are obligated to repay it after graduation or if enrolled less than half-time.

  • Visit studentloans.gov.
  • Sign in using your FSA ID number, not parent's.  The student not parent must complete the counseling session.
  • Select "Entrance Counseling".
  • Select school information.
  • Complete counseling for undergraduate or graduate/professional student.
  • Process must be completed in one session.
  • For technical or site related issues or have questions, please call Applicant Services at 800-557-7394.
  • Have questions?  Email us at buaid@bloomu.edu or by phone 570-389-4297.
STEP 2 - Submit Loan Master Promissory Note (MPN)

The MPN is a legal document stating that you promise to repay all of your student loans.  The MPN is valid for 10 years without having to complete a new one each year. 

  • Visit studentloans.gov.
  • Sign in using your FSA ID number, not parent's.  The student not the parent must complete the MPN. 
  • Select "Complete Loan Agreement (Master Promissory Note)".
  • Select "MPN for Subsidized/Unsubsidized Loans".
  • Complete requested information and follow instructions given.
  • For technical or site related issues or have questions, please call Applicant Services at 800-557-7394.
STEP 3 - What Happens Next?
  • Our office will certify your loan once all required items have been received (i.e. completed FAFSA, completed Loan Entrance Counseling and MPN, verification of at least half-time enrollment in an eligible program, and satisfactory progress earned). 
  • You can find your loan on your MyHusky Self-Service Account when it has been processed. 
  • In order for a student loan to be approved and disbursed, the student must accept the loan on their MyHusky Self-Service Account, complete the master promissory note, and complete loan entrance counseling before the last day of enrollment for the term in which the loan is processed.  The student must be enrolled at least half-time at the time of disbursement. 
  • The funds will be delivered through Electronic Funds Transfer (EFT) directly to your school account.  Get more information on tentative disbursement dates.
  • Information on how to reduce the loan can be found at intranet.bloomu.edu/aid/reduce_loan.  Once disbursement of funds has been made, you have 30 days to request the Bursar Office to return funds.