Direct Loan for First-Time Borrowers

To borrow a Federal Direct Loan for the first time, you must complete Entrance Counseling and a Master Promissory Note (MPN) before you receive your first loan disbursement.

• Step 1: Entrance Counseling is required before you can receive your first Federal Direct student loan. Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You'll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
  
  
• Step 2: Master Promissory Note (MPN) The MPN is the legal document through which you promise to repay your Federal Direct Loans and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loans. A Direct Loan MPN is valid for up to ten years from the date the MPN is received, if at least one loan disbursement is made within a year from the date the Department of Education receives the MPN.