Direct Loan Frequently Asked Questions
Find answers about the change in Federal Financial Aid at the Monterey Institute.
Does the switch from the Federal Family Education Loan Program (FFELP) to the Direct Loan (DL) program affect my loan eligibility?
No it does not. The eligibility requirements for both loan programs are the same. The main change is the source of funding. You are borrowing your funds from the Federal Government as opposed to a private lender.
Do the terms of my loan change with the switch to Direct Loans (DL)?
No. The terms of the loan are the same. The main difference is that you will have a new lender: the Federal Government. The loan repayment options, grace periods, and forgiveness provisions all remain the same.
When I visit www.studentloans.gov I cannot see the link to sign in and complete my MPN, what could be the problem?
We have discovered that the web browsers Safari and Google Chrome do not offer the link to sign in and complete the MPN. We recommend you try accessing your MPN using Internet Explorer or Firefox.
How and when do I complete a Direct Loan Master Promissory Note?
We would like for you to complete a promissory note as soon as possible even if you have not been awarded your financial aid for 2010-11. You may complete an MPN at: www.studentloans.gov Note that you will need the Federal PIN number that you used to sign your FAFSA in order to e-sign the MPN. If you don't have a PIN you could apply for one at www.pin.ed.gov. If you don't know your PIN, you can go to the "Request a Duplicate PIN" web page for a DUPLICATE PIN.
What will happen to the existing loans that I have borrowed from other lenders?
After graduation you can either make individual payments to your previous lenders and to the Department of Education for your Direct Loans, or you can consolidate your loans so you will only have to make one payment. However, please be aware that currently, only the Department of Education is consolidating Federal Student Loans, so if you opt to consolidate, you must convert all of your FFEL loans into a Direct Loan. Please consider the pros and cons of loan consolidation before making a decision. We are here to help if you have questions.
Why do I have to complete another Master Promissory Note?
You must sign a new Master Promissory Note because you will now be borrowing from a new lender. Each lender requires you to complete a promissory note for their loans.
If I am a continuing student, do I need to do the Entrance Counseling Again?
No. You only need to complete the Entrance Counseling if you are a first time borrower.
When does the switch from the FFEL loan program to the DL loan program take place?
If you are borrowing student loans for the summer 2010 or beyond, your loans will be processed under the DL loan program. Therefore, we encourage you to complete a new Direct Loan Promissory Note ASAP by going to www.studentloans.gov.
How do I complete a direct loan Entrance Counseling?
To complete the entrance, go to http://www.studentloan.gov/ and sign in using your PIN number.
What is the direct loan entrance counseling?
It is an explanation of your rights and responsibilities pertaining to the Direct Loan Program. This is a mandatory for all first time borrowers.
Is the credit critieria for the Grad PLUS loan any different now that I apply for it through the Direct Loan program?
No, the credit criteria remains the same. However, you do have to reapply for a new Grad PLUS loan every academic year. You can apply by going to www.studentloans.gov.
If I have already completed a Direct Loan Master Promissory Note for another school, do I have to complete another one for the Monterey Institute?
As long as you have been continuously enrolled at least half time you will not have to complete a new note. However, if you have had a break in your enrollment for more than one term, please contact our office to determine if you will need to complete a new note.
Will changing loan programs to Direct Loans cause my FFEL loans go into repayment?
No, your FFEL loans will not go into repayment as long as you remain enrolled at least half time. If you receive information from your lenders indicating that you are in repayment, be sure to contact the Office of Student Financial Planning ASAP and we will get the loans put back into an in school deferment.