A student who receives a Direct Stafford Loan, which is a federal student loan program offered by the U.S. Department of Education, must complete the following requirements:
Free Application for Federal Student Aid (FAFSA): Before applying for a Direct Stafford Loan, students must complete the FAFSA form. The FAFSA is used to determine eligibility for federal student aid programs, including grants, scholarships, and loans. It collects information about the student's financial situation and is typically required annually.
Entrance Counseling: Before receiving a Direct Stafford Loan for the first time, borrowers must complete entrance counseling. This counseling session provides important information about the loan terms, repayment options, and borrower responsibilities. It ensures that students understand their rights and obligations as borrowers.
Master Promissory Note (MPN): Borrowers must sign a Master Promissory Note (MPN) before receiving a Direct Stafford Loan. The MPN is a legal document that outlines the terms and conditions of the loan, including the amount borrowed, interest rate, repayment options, and borrower rights and responsibilities. It serves as a binding agreement between the borrower and the federal government.
Completing these requirements helps ensure that students understand the terms of their federal student loans and are prepared to meet their obligations as borrowers. It's essential for students to carefully review the information provided during entrance counseling and to keep track of their loan details throughout their college education and repayment period.