Federal Student Loans: learn the benefits
Smart Borrowing Begins with making informed choices
A college education is one of the most important investments you can make—but how you pay for it matters. Federal student loans provide a reliable and affordable way to finance your education. Unlike private loans, federal loans offer benefits designed to support students and families.
Why Choose Federal Loans?
✅ Lower, fixed interest rates: Rates set at the time you borrow and no surprise increases.
✅ No credit check or approval needed: If you meet FAFSA eligibility criteria, they will be offered.
✅ Subsidized loans: If eligible for this type of loan, no interest accrues while you're in school.
✅ Flexible repayment options: Includes income-driven plans.
✅ Loan forgiveness programs: Possible debt cancellation for qualifying borrowers.
✅ Borrower protections: Deferment, forbearance, and repayment assistance available.
💡 Guaranteed Funding: As long as you submit the FAFSA, enroll at least half-time in an eligible program, and have not reached your borrowing limits, you will be offered federal student loans—no credit check required!
What you need to know. Borrow smart and learn more to help make a decision that benefits you.
Federal student loans are usually recommended first for their low fixed rates, interest subsidies, and flexible repayment options. On this page, you’ll learn about:
| Amounts, Rates,& Limits—by Loan Type, FAFSA Dependency & Program Level | Find details on current interest rates, origination fees, and annual and lifetime loan limits based on the loan type, and your program level and dependency status. |
| How to Apply for Federal Student Loans | Learn how to log in to your Federal Student Aid account to apply and gain access to MU's step-by-step FAFSA instructions. |
| Requirements for First-Time Borrowers | Understand what's required before receiving your first loan, including entrance counseling and signing the Master Promissory Note (MPN). |
| Frequently Asked Questions | Get quick answers to common questions about loan eligibility, processing times, and disbursements. |
| Requirements for Borrowers under Half-Time Enrollment or Graduating | Learn how enrollment each semester affects your loan eligibility and what to do if you're graduating, withdrawing, or leaving school. |
| Repayment Info & Tracking Your Loans | Find out how to manage your loans after school—including repayment plans, grace periods, and how to track your loan balance. |
Click on the ➕ to expand each section below:
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Amounts, Rates, & Limits—by Loan Type, FAFSA Dependency & Program Level
UNDERGRADUATE & POST-BACCALAUREATE CERTIFICATION PROGRAMS
loan types & eligibility
Loan Type Eligible Programs Who Can Borrow? Rate & Fee Key Benefit Subsidized Undergraduate Programs
(Degree-seeking)
Requires Financial Need
Cost of Attendance (COA)
− Student Aid Index (SAI)
− All Gift Aid
= Remaining needIf it's a positive number, loan eligibility is offered up to the annual grade level limit, but will not exceed the remaining aggregate amount of overall eligibility.
6.53% Fixed Interest
1.057% Origination Fee
Deducted before funds are paid
No interest accrues while at least half-time. The Interest rate remains for the life of the loan Post-Baccalaureate Certification Programs
(Excludes Certificates)
Unsubsidized Undergraduate Programs
(Degree-seeking)
All undergraduate students who meet eligibility requirements 6.53% (fixed) Interest accrues immediately, but repayment is deferred Annual Borrowing Limits
Earned Credits Dependent Students Independent Students 0 – 29.9 $5,500 (Max $3,500 Subsidized) $9,500 (Max $3,500 Subsidized) 30 – 59.9 $6,500 (Max $4,500 Subsidized) $10,500 (Max $4,500 Subsidized) 60+ $7,500 (Max $5,500 Subsidized) $12,500 (Max $5,500 Subsidized) 💡 Post-Bacc students follow same limits as undergrad students, based on dependency. Lifetime Borrowing Limits
Student Type Lifetime Limit Max Subsidized Amount Dependent Undergraduate & Post-Baccalaureate $31,000 $23,000 Independent Undergraduate & Post-Baccalaureate $57,500 $23,000 💡 Once you reach your lifetime limit, you will not be eligible for additional federal loans unless you repay part of your existing balance. GRADUATE & DOCTORAL PROGRAMS
Loan Types & Eligibility
Loan Type Eligible Programs Who Can Borrow? Rate & Fee Key Benefit Unsubsidized Loan Graduate & Doctoral Programs
(Excluding Certificates)
All Students 8.08% Fixed Interest Rate
1.057% Fee deducted before funds pay
Repayment is deferred, and there are multiple repayment options 💡 Graduate students do not qualify for Subsidized Loans. Annual Borrowing Limits
Earned Credits Dependency Status Annual Loan Amount Bachelors Degree Completed Dependency status does not apply Up to $20,500 Unsubsidized 💡 Graduate students can only borrow Unsubsidized Loans. Lifetime Borrowing Limits
Student Type Lifetime Limit Max Subsidized Amount Graduate & Doctoral Student $138,500 (includes undergraduate & post-bac loans) Not eligible for Subsidized Loans 💡 Your total loan amount, including undergraduate and post-baccalaureate borrowing, cannot exceed $138,500.
Key Takeaways:
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Undergraduate & Post-Baccalaureate students have both Subsidized and Unsubsidized loan options, with borrowing limits based on dependency status.
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Graduate & Doctoral students are only eligible for Unsubsidized Loans, with higher borrowing limits.
- Lifetime borrowing caps apply, but repaying part of your loans may restore eligibility.
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WHERE & HOW TO APPLY FOR FEDERAL STUDENT LOANS
Applying for federal loans is easy and can be done completely online!
1️⃣ Submit the FAFSA at studentaid.gov – This determines your eligibility for loans and grants.
2️⃣ Review Your Financial Aid Offer – Check your student portal for your loan options.
3️⃣ Accept Your Loan – Borrow only what you need.
4️⃣ Complete Loan Requirements:- Entrance Counseling (first-time borrowers)
- Master Promissory Note (MPN) – Your agreement to repay your loans
Receive Your Loan Funds – The school applies the loan to tuition and fees first, then refunds any remaining balance to you.
💡Pro Tip: Only borrow what you need to cover essential educational expenses!
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ATTENTION FIRST-TIME LOAN BORROWERS
If you are borrowing a Federal Direct Loan for the first time, you must complete the following steps before your loan funds can be applied to your student account.
Step 1: Ensure Your FSA ID is Ready
To complete both Entrance Counseling and the MPN, you must have an FSA ID and Password.
FSA ID Help:
Step 2: Complete Entrance Counseling
The Federal Government requires all first-time borrowers to complete Entrance Counseling before receiving loan funds. This process helps you:
- Understand how federal loans work
- Learn your rights and responsibilities as a borrower
- Plan for repayment after graduation
How to Complete Entrance Counseling:
1️⃣ Go to studentaid.gov
2️⃣ Log in with your FSA ID and Password (same as FAFSA login)
3️⃣ Select "Complete Entrance Counseling" and follow the prompts
4️⃣ Submit your counseling session online💡 Important: Entrance Counseling must be completed by the student—not the parent.
Step 3: Sign the Master Promissory Note (MPN)
The Master Promissory Note (MPN) is your loan agreement with the U.S. Department of Education. By signing it, you agree to repay your federal loan(s), plus any accrued interest and fees. The MPN is valid for 10 years and must be completed before your loan is disbursed.
How to Complete the MPN:
1️⃣ Go to studentaid.gov
2️⃣ Log in with your FSA ID and Password
3️⃣ Select "Complete a Master Promissory Note (MPN)"
4️⃣ Choose “Subsidized/Unsubsidized Loans”
5️⃣ Follow the prompts and sign electronically💡 Important: The MPN must be completed by the student—not the parent.
What Happens Next?
Your loan funds will NOT be disbursed until both Entrance Counseling and the MPN are completed.
Once finished, your school will process your loan, and funds will be applied to your account after the add/drop period each semester.
Need help? contact us
Can’t call during business hours? Connect with a Financial Aid Representative during our extended phone hours.
Monday–Friday, 8:00 AM to 6:00 PM
Prefer email? Reach out when it’s convenient for you, and a representative will respond during business hours.
Monday–Friday, 8:00 AM to 4:30 PM
Need help with your FAFSA or have questions about financial aid? Schedule a one-on-one meeting with a counselor at a time that works for you!
Options: In-person, Phone, or Virtual.
📍 Stop By
Have a quick question or form to drop off? Our Front Office can assist you or use our computer lab for the FAFSA, your financial aid requirements, and more.
Location: 2nd floor, Lyle Hall
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Frequently Asked Questions (FAQs)
Can I get a federal loan if I have bad credit?
- Yes! Federal Direct Loans don’t require a credit check (except for Parent & Grad PLUS Loans).
How do I know if I qualify for a Subsidized Loan?
- Your eligibility is based on financial need, which is determined by your FAFSA Student Aid Index (SAI) and the costs of your school.
Do I have to accept the full loan amount I’m offered?
- No, you can choose to borrow only what you need by adjusting your loan amount in your student portal.
What happens if I can’t make my payments after graduation?
- Federal loans offer income-driven repayment plans, deferment, and forbearance to help if you're facing financial hardship.
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Requirements for Borrowers Under Half-Time Enrollment or Graduating
If you are graduating, withdrawing, taking a leave of absence, or dropping below half-time enrollment, you are required to complete Federal Loan Exit Counseling at studentaid.gov.
Exit Counseling helps you:
- Understand your repayment options and responsibilities
- Learn how to avoid delinquency or default
- Review your loan details and servicer information
Grace Period & Loan Deferment:
- Once you leave school or drop below half-time, your 6-month grace period begins.
- If you return to school before the grace period ends, your loans will go back into deferment, but you will have used part of your grace period.
- Future loans will have a full 6-month grace period when you leave school again.
⚠️ Failure to complete Exit Counseling may result in holds on your student account. Be sure to complete it as soon as possible!
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Repayment Terms & Plan Options
Repayment begins six months after you graduate or drop below half-time enrollment. Federal loans offer multiple repayment options to fit your financial situation.
Repayment Plan
Monthly Payment Calculation
Repayment Term
Standard Plan Fixed payments 10 years Graduated Plan Lower payments that increase over time 10 years Income-Driven Plans Payments based on income & family size 20-25 years Public Service Loan Forgiveness (PSLF) Forgives the remaining balance after 120 qualifying payments Varies 💡 If you're struggling with payments, you may qualify for deferment, forbearance, or loan forgiveness. Log in to studentaid.gov for more information.
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KEEP TRACK OF YOUR FEDERAL LOANS
Are you confused about how to keep track of your federal loans?
Log into your account at studentaid.gov to view detailed information about your federal loans, repayment options, and current loan servicer(s). Please note that this is only for federal loans and does not include any private loans.
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FEDERAL LOANS VS. PRIVATE LOANS: KNOW THE DIFFERENCE
Federal Loans Private Loans Guaranteed eligibility (with FAFSA) Requires credit approval Lower, fixed interest rates Typically higher variable and fixed interest rates Subsidized option (no interest while in school) Interest accrues immediately Flexible repayment plans Limited repayment options Loan forgiveness programs No forgiveness available Private loans often come with higher interest rates. Always explore federal options first!
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FEDERAL DIRECT LOAN DISCLAIMER
In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Student Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.