Federal Direct Loans
Federal educational loan options:
- Private Student Loan Listing (ELM Select)
Direct Loans Steps and Info:
- If you have not borrowed with the U.S. Department of Education, you will need to complete Entrance Counseling and an electronic Master Promissory Note (E-MPN).
- In order to sign in and complete these requirements, a you will need to create a FSA ID.
- If you have an E-MPN completed from another school, you will not have to complete it again as long as you have been continuously enrolled at least half-time (6 credit hours undergraduate and masters; 3 credit hours doctoral studies). If you have had a break in your enrollment, however, a new E-MPN will be necessary. And in either case you still have to complete Entrance Counseling.
- All federal student loan borrowers will receive a confirmation email from the U.S. Department of Education once they have successfully completed the E-MPN. The requirements will be shown as complete in your ASIST account 48 hours after completing the Entrance Counseling.
- Note: The Financial Awareness Counseling listed under "Tools and Resources" on www.studentloans.gov is not able to be substituted as the required Direct Loan Entrance Counseling.
- If you have any issues on the government website, make sure you are using Internet Explorer 6 or later, or Mozilla Firefox 2.0 or later.
- You can track your federal and private loans.
PLUS Loans Info:
Steps to Complete a Parent or Grad PLUS Loan
- Sign-in with your information at www.studentloans.gov
- Select "Request PLUS Loan" from the options on the left side of the page
- Choose the type of loan you plan to apply for (Parent PLUS or Grad PLUS) and complete the application. Note: the parent is the borrower of a Parent PLUS loan and will require parent information on the application.
Appeal a credit decision on a PLUS loan
Liberty University will not process a credit decision on any Federal PLUS loans and will only accept the official credit decision offered by the U.S. Department of Education. If you wish to appeal a credit decision, you should:
- Contact Application Services at (800) 557-7394 to speak with a representative from the U.S. Department of Education — Mon.-Fri., 8 a.m.-8 p.m. (ET).
- Find an endorser for the loan and complete an official endorser addendum. This must be submitted with the ticket number assigned to you by the U.S. Department of Education Application Services Department.
Low Credit Scores
If you had poor credit but were approved for a Direct Parent PLUS or Direct Graduate PLUS loan by getting a qualified endorser (or documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to the borrower’s adverse credit), you must complete the new Direct PLUS Loan Counseling requirement.
Consolidating Your Loans
After graduation you have a choice: You may either make individual payments to your previous lender(s) and to the U.S. Department of Education, or you can consolidate your loans into one payment with the U.S. Department of Education through a Federal Direct Consolidation Loan.
International students who need assistance in financing their education have the option to apply for private educational loans through a private loan lender. Most private loan lenders require an international loan applicant to also have a U.S. co-signer during the application process. View listing of lenders for International students.
Federal Requirements for Default Resolution
Federal regulations prohibit the awarding of additional federal student aid (FSA) to students who have defaulted on a federal student loan. However, you can regain eligibility for FSA by resolving the default status.
The U.S. Department of Education has established the following three methods to resolve a default status:
- Repayment in full (including consolidation) - You can resolve a default by repaying the loan in full
- Satisfactory repayment arrangements - You you can regain eligibility on an FSA loan in default after making six consecutive, full, on- time, voluntary payments under a repayment arrangement that is satisfactory to the loan holder. You may regain eligibility under this option only one time.
- Loan rehabilitation - Although you can regain eligibility for all FSA funds by making satisfactory repayment arrangements, the loan is still in default. After you makes nine full, voluntary payments on time (no later than 20 days after the due date) within 10 consecutive months, the loan becomes eligible for rehabilitation.
After a default status has been resolved, sufficient documentation must be sent to the school indicating that you have regained federal aid eligibility. Per federal regulations, the documentation must be from the entity that reported the default to NSLDS; clearly show that each defaulted loan has been resolved; be provided in writing on the entity’s letterhead (or other format that ensures its origin) and dated.
Additional loan default information can be found at the U.S. Department of Education’s Federal Student Aid website.
Government Website Resources
- FSA ID Website
- Entrance Counseling Website
- Master Promissory Note Website
- Federal Loan Consolidation Information Website
- Federal Direct Servicing Website
- Federal Direct Loan Informational Website
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