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!
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Direct Loan Types & Eligibility
UNDERGRADUATE & POST-BACCALAUREATE CERTIFICATION PROGRAMS
Loan Type Who Can Borrow? Rate & Fee Key Benefits Subsidized Requires Financial Need as determined on the FAFSA
6.39% (fixed interest)
1.057% Origination Fee deducted before funds pay
No interest accrues while at least half-time and repayment is deferred. Unsubsidized All undergraduate students (excluding certificates) who meet eligibility requirements Interest accrues immediately, but repayment is deferred GRADUATE & DOCTORAL PROGRAMS
Loan Type Who Can Borrow? Rate & Fee Key Benefits Unsubsidized All graduate students (excluding certificates) 7.94% (fixed interest)
1.057% Orifination Fee deducted before funds pay
Repayment is deferred, and there are multiple repayment options -
LOAN LIMITS & ENROLLMENT REQUIREMENTS
Federal student loans help cover educational expenses, but there are limits on how much you can borrow each year and over your lifetime. Understanding these limits and enrollment requirements ensures you receive the aid you need while staying eligible.
To learn about the enrollment requirements and annual, aggregate, and lifetime loan limits for Federal Loans, visit the link below:
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APPLYING FOR FEDERAL STUDENT LOANS
Applying for federal loans is easy and can be done completely online!
- Submit the FAFSA at studentaid.gov – This determines your eligibility for loans and grants.
- Review Your Financial Aid Offer – Check your student portal for your loan options.
- Accept Your Loan – Borrow only what you need.
- Complete Loan Requirements – Entrance Counseling (first-time borrowers) & Master Promissory Note (MPN)
- Receive Your Loan Funds – The school applies the loan to tuition and fees first, then refunds any remaining balance to you.
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Requirements for 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.
Your loan funds will NOT be disbursed until both Entrance Counseling and the MPN are completed. Once finished, our office will process your loan, and funds will be applied to your account after the add/drop period each semester.
Complete Entrance Counseling
The Federal Government requires all first-time borrowers to complete Entrance Counseling before receiving loan funds. Learn how to complete Entrance Counseling at the link below:
Federal Loan Entrance Counseling
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. For information on completing the MPN visit the link below:
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Required Exit Counseling
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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Loan Repayment Information
Repayment begins six months after you graduate or drop below half-time enrollment. Federal loans offer multiple repayment options to fit your financial situation.
For for more information on loan repayment, visit the link below:
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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.
How Can I Keep Track OF My Student 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.
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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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.