Direct Loan Process – First-Time Borrower
Apply for a Direct Loan
To apply for a Direct Loan for the first time, you must complete a Master Promissory Note. The Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. Also, you must complete the entrance counseling before the loan department can process your Direct loan with the Department of Education.
For Direct Subsidized/Unsubsidized Loans, where the first disbursement is made on or after October 1, 2015 and before October 1, 2016 the origination fee is 1.068%.
- Step 1: Master Promissory Note (MPN)
- Step 2: Entrance Counseling is required before you can receive your first federal subsidized/unsubsidized student loan, or your first PLUS loan as a graduate/professional student.
- Step 3: Direct Loan Application (You must have completed Steps 1 & 2 BEFORE you can complete this application form. You will need to use your Clark College global PIN.)
Exit and Financial Awareness Counseling
- Step 4: Exit Counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information you will need as you prepare to repay your federal student loan(s).
- Step 5: Financial Awareness Counseling provides tools and information while in school to help you understand your financial aid and assist you in managing your finances.
- New students borrowing a loan for the first time receive their first loan disbursement on the 31st day of the quarter. If the disbursement date falls on a weekend or holiday, the disbursement will be available on the following business day.
- All students borrowing a loan for a single quarter will receive their disbursements in two installments. The first disbursement will be on the 1st day of the quarter and the second at the mid-point of the quarter. If the disbursement dates fall on a weekend or holiday, the disbursement will be available on the following business day.
- Students must be in good academic standing, as defined by the Financial Aid Satisfactory Academic Progress Policy, at the time funds are disbursed.