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Transition to Direct Loans

New legislation regarding student and parent loans

On March 30, 2010, President Obama signed Health Care legislation which included provisions impacting federal financial aid programs. Specifically, this legislation requires that all new federal student loans be obtained through the Federal Direct Loan Program beginning July 1, 2010.

Only one lender choice beginning July 1, 2010

NC State University participates in the William D. Ford Federal Direct Loan (Direct Loan) Program and is prepared to process all loans through this program beginning July 1, 2010. Students and parents who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Loan Program. The Direct Loan Program offers the same types of loans as the FFEL Program. Direct Loans generally have the same terms and conditions as FFEL Program loans, but instead of a bank acting as the lender, the U.S. Department of Education acts as the lender. The William D. Ford Federal Direct Loans (subsidized and unsubsidized) are referred to as Direct Subsidized Loans and Direct Unsubsidized Loans. Federal PLUS Loans are referred to as Direct PLUS Loans.

Complete a new MPN online

If you have not previously received a Direct Loan, you must complete a Direct Loan Master Promissory Note (MPN) even if you have previously signed an MPN for another lender. The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department. It also explains the terms and conditions of your loans. A Direct Loan MPN can be used to make loans for up to ten (10) years. You may complete a Direct Loan MPN electronically via the StudentLoans.gov website.

Use your FAFSA PIN to sign your Direct Loan MPN

To complete a Direct Loan MPN electronically, you must have a Federal Student Aid PIN. The Federal Student Aid PIN is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA). To apply for a PIN if you do not already have one, or for customer service regarding a previously assigned PIN, visit www.PIN.ed.gov.