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!
FEDERAL STUDENT LOANS BY PROGRAM LEVEL📚 AWARD TYPES, Annual AMOUNTS & Lifetime Limits by program |
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UNDERGRADUATE & POST-BACCALAUREATE CERTIFICATION PROGRAMS |
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🎓 Loan Types & Eligibility
💰 Annual Borrowing Limits
🎯 Lifetime Borrowing Limits
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GRADUATE & DOCTORAL PROGRAMS |
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🎓 Loan Types & Eligibility
💰 Annual Borrowing Limits
🎯 Lifetime Borrowing Limits
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Key Takeaways:
✅ Undergraduate & Post-Baccalaureate students have both Subsidized and Unsubsidized loan options, with borrowing limits based on dependency status.
✅ 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.
learn more:
Explore the sections below for information on:
💡How to apply
💡FAQ's
💡How to compare federal and private loans
💡Requirements for first-time borrowers
💡Requirements for borrowers who are leaving school or graduating
💡Repayment Information & tracking your loans
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HOW TO APPLY FOR FEDERAL STUDENT LOANS
Applying for federal loans is easy and 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
5️⃣ 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, determined by your FAFSA Student Aid Index (SAI) and school costs.
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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attention graduates & below half time
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 remaining balance after 120 qualifying payments Varies 💡 If you're struggling with payments, you may qualify for deferment, forbearance, or loan forgiveness. Log into 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 Higher, variable 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 can cost more in interest. 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.