ENTRANCE

COUNSELING GUIDE

For Direct Loan Borrowers
ENTRANCE COUNSELING GUIDE

For Direct Loan Borrowers

CONTENTS

Types of Direct Loans 1

THINKING ABOUT BORROWING?

How Much Can I Borrow? 2

How Much Should I Borrow? 3

How Much Interest Do I Have to Pay? 5

Should I Pay Interest on My Loan While I’m in School? 5

GETTING A LOAN

The Master Promissory Note 6

How Your Loan Money Is Paid 6

PAYING BACK YOUR LOAN

Repayment Options 8

Keep Your Loan Account Up to Date! 9

Staying Out of Default 10

Notepad 11

Rights and Responsibilities Checklist Tear out

This guide provides a general overview of information that you will need to successfully repay the Direct Loans 

that you are receiving to help pay for your college costs. For more detailed information about a specific topic, see 

the Master Promissory Note for your loan or your copy of the Borrower’s Rights and Responsibilities Statement. 

Much of the information in this booklet is a part of entrance counseling, which first-time student borrowers must 

complete before receiving a Direct Subsidized or Unsubsidized Loan. Throughout this guide the words “we,” “us,” 

“our” and “the Department” refer to the U.S. Department of Education. Also, all references to “loan” in the singular apply 

to more than one loan as well.

COVER PHOTO: ©Jupiter Images Corporation, 2006. August 2007 
Direct Loans on the Web: www.dl.ed.gov | 

Types of Direct Loans

u Direct Subsidized Loans

	Direct Stafford/Ford Loans—

Subsidized loans for students. Interest 

is not charged while you are in school 

at least half time, during your grace 

period or during deferment periods. 

To receive a Direct Subsidized Loan, 

you must have financial need. Your 

school will determine if you are eligible 

for a Direct Subsidized Loan.

u Direct Unsubsidized Loans

Direct Unsubsidized

Stafford/Ford Loans—

Unsubsidized loans for students. Interest is 

charged during all periods, including 

while you are in school and during grace 

and deferment periods.

u Direct PLUS Loans

Direct PLUS Loans—

Unsubsidized loans for parents of 

dependent students. Graduate and 

professional students may also apply 

for a PLUS Loan. PLUS loans help 

pay for education expenses up to the 

cost of attendance minus all other 

financial assistance. Interest is charged 

during all periods.

u Direct Consolidation Loans

Direct Consolidation loans—

Loans for students or parents that combine 

different federal student loans into one loan.

The following Direct Loans are made through the William D. 

Ford Federal Direct Loan (Direct Loan) Program, which is 

administered by the U.S. Department of Education: PHOTO: ©U.S. Department of Education
 | Entrance Counseling Guide

THINKING ABOUT BORROWING?

How Much Can I Borrow?

The table below shows the MAXIMUM amount you

can borrow each academic year and in total, based

on your dependency status and grade level.Whether

you are considered dependent or independent is

based on your age, marital status and other factors.

Your school can tell you your dependency status.

All graduate and professional students are

considered independent.

The actual loan amounts and types of loans

(subsidized, unsubsidized or a combination of both) that you are eligible to receive each year

are determined by your school, based on factors such as your cost of attendance, expected

family contribution, other financial aid and the length of your program. The actual amounts

you are eligible to borrow may be less than the maximum amounts shown below. If you are

enrolled in certain health professions programs, you may qualify for higher annual and

aggregate limits on Direct Unsubsidized Loans.

Annual Loan Limits for Direct Subsidized Loans and Direct Unsubsidized Loans

Dependent1 Independent2

First Year (freshman) $3,500 $7,500 (maximum $3,500 subsidized)

Second Year (sophomore) $4,500 $8,500 (maximum $4,500 subsidized)

Third Year (junior) and beyond $5,500 $10,500 (maximum $5,500 subsidized)

Graduate and Professional N/A $20,500 (maximum $8,500 subsidized)

Aggregate Loan Limits: Maximum Total Outstanding Loan Debt

Dependent1 Independent2

Undergraduate $23,000 $46,000 (maximum $23,000 subsidized)

Graduate and Professional N/A $138,500 (maximum $65,500 subsidized)3

1

 The dependent loan limits are for subsidized and unsubsidized loans combined. For example, the maximum annual amount that a dependent 

freshman may borrow is $3,500 which may consist of subsidized loans, unsubsidized loans or a combination of both types of loans.

2 For independent students, the first amount is the loan limit for subsidized and unsubsidized loans combined. The second amount is the 

maximum portion of the combined limit that may be from subsidized loans. For example, an independent freshman may receive a maximum 

of $7,500 each year but no more than $3,500 of that amount may be from subsidized loans.

3

 The graduate and professional maximum includes undergraduate loans.

Direct PLUS Loans – Applicants 

may borrow up to the cost of 

attendance less any estimated 

financial aid, as determined 

by the school. The interest 

rate on Direct PLUS Loans first 

disbursed on or after July 1, 

2006, is fixed at 7.9%.
Direct Loans on the Web: www.dl.ed.gov | 

How Much Should I Borrow?

It’s a good idea to borrow only as much as you need. That way you’ll have lower monthly

payments when you’re repaying your loan. This will leave you more money for things like

housing,child care and the expenses of starting a new career when you leave school.

How can I reduce the amount I need to borrow?

When you file your Free Application for Federal Student Aid (FAFSA), you’ll automatically be

considered for aid from all of the programs offered by the U.S.Department of Education,

including grants and work-study.The information on your FAFSA is often used by your

school to award grants and scholarships from other organizations,which may reduce the

amount you have to borrow.You may be able to find additional sources of aid on your own

—for instance, try a free scholarship search on the Web.The Department has a free search

engine on Student Aid on the Web at www.studentaid.ed.gov.

Another way to help pay for college and minimize debt is to work part-time.Working while

going to school is not for everyone—but studies show that students who work while going

to school do better in their courses than students who don’t work.Working can also provide

you with valuable experience and skills needed for your career.

How can budgeting help me?

Developing and sticking to a budget while you’re in school can help minimize the amount

you need to borrow. Make a list of your expected monthly expenses and subtract that from

your available sources of income,such as your student aid and any outside employment.

If your income is less than your expenses, you’ll need to reduce your expenses, find other

sources of income or both.

You can also use a budget to see how much you can afford to repay, based on your estimated

income and expenses after you leave school. This estimated budget can help you decide how

much you can afford to borrow to go to school.

Find help on the Web by using the interactive budget worksheet and calculator at

www.ed.gov/offices/OSFAP/DirectLoan/calc.html. Also see pp. 11-13 in this booklet.

How will my student loan fit into my budget after I graduate? 

To set up a monthly budget,start with your expected annual income.You can get rough

estimates of salaries in different careers by checking the Occupational Outlook Handbook

at www.bls.gov/oco, and you may want to check jobs advertised in the area where

you plan to live.
 | Entrance Counseling Guide

Credit cards are one tool for

borrowing money, but they

often carry very high interest

rates. Many credit cards give

you a low interest rate for the

first few months and then

raise the rate after this initial

period. If you decide you need

a credit card, it’s best to stick

with one card with a low

credit limit. Pay off your total

balance each month. If that is

not possible, always pay more

than the minimum. If you

make a payment late (even 

a day late!), you may have 

to pay a finance charge, and

your interest rate may go up.

As you make your budget, first subtract 30 percent

of your salary for federal, state and local taxes.

Then divide the remainder by 12 to find your monthly

take-home pay. Then estimate your expenses

using the following table.If you’re not sure what to

estimate for a particular category, multiply your

monthly take-home pay by the suggested percentages in the second column of the worksheet below.

To show you how this works, let’s take the example

of Myra Mensa,who is planning to get a degree in

nursing and work as a registered nurse (RN). Myra

used the Web to look up nursing jobs in the area

where she plans to work after college and found

that the starting salary for an RN is about $23,000.

After taxes,she expects to have about $16,000 of

available income a year.Divided by 12, this gives

her a monthly budget of $1,333.

Based on this budget, Myra can afford student loan payments of $81 a month. Looking at the

repayment chart on page 12 of this booklet, this would mean that Myra can afford to borrow

approximately $7,000 under the Standard repayment plan and approximately $10,500 under

the Graduated plan.

Keep in mind that these are rough estimates, as income and expense figures are likely to change

due to inflation or other factors.

Monthly Expenses Myra’s Budget Your Budget

Rent/Mortgage 33% $440

Groceries 15% $200

Clothing 5% $65

Car payments & insurance 12% $160

Utility bills (gas, electric, water, 

telephone, cable) 7% $93

Medical (insurance, doctor visits, etc.) 5% $67

Entertainment & recreation (dining out, 

movies, music, vacation trips) 7% $93

Other debts (including credit card debt) 5% $67

Miscellaneous/Savings 5% $67

Student loan payments 6% $81

TOTAL 100% $1,333
Direct Loans on the Web: www.dl.ed.gov | 

Can I get help repaying my loan? 

There are some careers that can help you repay

your loan. For instance, you might be eligible to

have as much as $17,500 of your Direct Subsidized or Unsubsidized Loan cancelled

after 5 years of teaching in schools in lowincome areas (for more details,see Student Aid 

on the Web at www.studentaid.ed.gov). As a part of their recruitment programs, the Armed

Forces may repay your education loan if you enlist in the military. For more information,

contact your local military service recruitment office.

How Much Interest Do I Have to Pay?

The interest rate on Direct Subsidized and Unsubsidized Loans first disbursed on or after

July 1, 2006, is fixed at 6.8%. Fixed rates are just that: set at the rate of 6.8% for the life of

the loan.

We do not charge interest on your subsidized loan while you are enrolled at least half-time,

during your grace period and during deferment periods.We charge interest on your Direct

Subsidized Loan during all other periods,starting on the day after your grace period ends

(including forbearance periods).We charge interest on your unsubsidized loan during all

periods,starting on the day it is disbursed.

Should I Pay Interest on My Loan While I’m in School?

If you choose not to pay the interest on your Direct Unsubsidized Loan while you’re

in school, we will add it to the unpaid principal amount of your loan. This is called

“capitalization.” Capitalization increases the unpaid principal balance of your loan, and

we will then charge interest on the increased principal amount. It will save you some

money in the long run if you pay the interest as it accrues on your loan while you’re in

school or during the grace period. This is also true if you pay any interest that accrues

during periods when you defer loan payments after leaving school. Check your interest

statements and use the online calculators at www.dl.ed.gov to find out how much

you’ll pay over the life of the loan if the in-school interest is added to your loan balance.

Remember, you must repay

the full amount of your loan

even if you don’t complete

your education program, can’t

find work related to your area

of study or are dissatisfied

with the education or services

you received from your school.

By law, a loan fee will be subtracted from each loan you receive. This fee 

will be subtracted proportionally from each disbursement of your loan. 

The loan fee will be shown on a disclosure statement that we send to you.
 | Entrance Counseling Guide

The Master Promissory Note

To get a Direct Loan, you must sign a Master

Promissory Note (MPN). The MPN is a legally

binding agreement that you will repay your loan

to the Department. It contains the terms and

conditions of the loan and explains how and when

it should be repaid.You should keep the MPN and

any other loan documents in a safe place for future reference.

The MPN can be used to make all of your Direct Loans during your college attendance

(for up to 10 years), if your college chooses to use it to make multiple loans. For instance,

if you’re attending a community college, you could sign one MPN and receive a subsidized

and an unsubsidized loan for your first year as well as your second year of study.You’ll receive

a disclosure statement that gives you specific information about any loan that the school

plans to disburse under your MPN, including the loan amount and loan fees. The disclosure

statement also tells you how to cancel your loan if you don’t want it.

How Your Loan Money Is Paid

Generally, your school pays your loan money in at least two disbursements, for example,

at the beginning of each semester or quarter or at the beginning and midpoint of

your academic year.

Your school usually credits your loan payment to the school charges on your account (tuition

and fees, room and board, and other authorized charges). If the loan money exceeds your

school charges, the school will pay you the credit balance by check or other means.We notify

you in writing each time your school disburses part of your loan money.

Unless you authorize your school to hold the credit balance for you, your school must pay

it to you within 14 days after the start of classes for that academic term or payment period.

If the loan money is credited to your school charges after classes start, the school has 14

days to pay the credit balance from the date it made the credit.

If you want to sign a separate

MPN for each loan that you

receive rather than use one

MPN to cover all of your 

Direct Loans, you must notify 

your school.

Some schools use the electronic Master Promissory Note (e-MPN). Check with 

the financial aid office at your school about the option to use the e-MPN.

Review all documents carefully before signing and remember to keep copies 

of all financial aid information.

getting a loan
Direct Loans on the Web: www.dl.ed.gov | 

Before your loan money is disbursed, 

you may cancel all or part of your 

loan at any time by notifying your 

school. To cancel all or part of the 

loan after it’s been credited to your 

account, you should let your school 

know before the first day of the 

payment period, or within 14 days 

of receiving the notice from the 

school that the loan money was 

credited, whichever is later. As an 

alternative, you may return all 

or part of the loan to the Direct 

Loan Servicing Center within 120 

days of the date your school 

credited your account or paid 

you the credit balance. For either 

type of cancellation, your loan will 

be adjusted to eliminate any interest 

or loan fee amount that applies to 

the cancelled portion of your loan.

Cautions: 

You may use the loan money you receive

only to pay for your education expenses

at the school that is giving you the loan.

Education expenses include school charges

such as tuition,room and board, fees and

indirect expenses such as books,supplies,

equipment, dependent child care expenses,

transportation and rental or purchase

of a personal computer.

The entire unpaid amount of your loan may

become due and payable (on your MPN this

is called “acceleration”) if it turns out that

you are not eligible for the loan. For instance,

you’ll have to pay back the loan immediately if:

u	You don’t enroll at least half-time

at the school that gave you the loan.

u	You gave false information that

made you eligible for the loan.

PHOTO: ©Jupiter Images Corporation, 2006.

PHOTO: ©Jupiter Images Corporation, 2006.
 | Entrance Counseling Guide

PAying Back Your Loan 

Because we report information about your loan to national credit bureaus, making timely

payments on your loan will help you keep a good credit rating. If you think you might

have a problem making the scheduled payments on your loan,contact the Direct Loan

Servicing Center immediately. The Direct Loan Servicing Center can help you avoid the

costs and penalties of delinquency and default.

Repayment Options

When you leave school, you may need some time to find the right job and perhaps move to

a new place. So that you won’t have to start making payments on your loan right after you

leave school, each of your Direct Subsidized and Unsubsidized Loans has a six-month “grace

period”that starts the day after you stop attending school or you drop below half-time enrollment.

You don’t have to make payments during this grace period—we’ll let you know when the

grace period is coming to an end and when you need to make your first payment. Interest

does continue to accrue on any unsubsidized loan.

You may choose one of the following repayment plans to repay your loan:

STANDARD REPAYMENT PLAN—You will make fixed monthly payments

to repay your loan in full within 10 years (not including periods of deferment or

forbearance) from the date the loan entered repayment.

EXTENDED FIXED REPAYMENT or EXTENDED 

GRADUATED REPAYMENT PLAN—You will make

fixed or graduated monthly payments and repay your

loan in full over a period of time, not to exceed 25 years

(not including periods of deferment or forbearance).

GRADUATED REPAYMENT PLAN—Your payments will

be lower at first and will then increase, usually every 2

years. You must repay your loan in full within 10 years

(not including periods of deferment or forbearance).At

a minimum, your payments must cover the interest that

accumulates on your loan between payments.

INCOME CONTINGENT REPAYMENT PLAN—Your monthly payment amount will be

based on your annual income (and that of your spouse if you are married), your family size

and the total amount of your Direct Subsidized and Unsubsidized Loans.As your income

changes, your payments may change. If you do not repay your loan after 25 years under this

plan, the unpaid portion will be forgiven. You may have to pay income tax on any amount

forgiven. PLUS loan borrowers are not eligible for this plan.

* You received your first Direct Loan on or after this date, or had no outstanding 

Direct Loan balance when you took out your first loan after this date.

To be eligible for either 

Extended Repayment 

Plan, you must be a new 

borrower* on or after 

Oct. 7, 1998, and you must 

have more than $30,000 in 

outstanding Direct Loans.
Direct Loans on the Web: www.dl.ed.gov | 

If you are a reservist called

to active duty for more than

30 days, the time you serve

generally doesn’t count 

against your grace period.

See your copy of the

Borrower’s Rights and

Responsibilities Statement

for more details.

Keep in Contact!

If you don’t choose a repayment plan,we’ll use the

Standard Repayment Plan, but you may change

repayment plans at any time after you have begun

repaying your loan.Another option is to combine

your loans into a single Direct Consolidation Loan,

which simplifies repayment and allows you to extend

the repayment period.(Note that while your monthly

payments may be lower, you may pay more interest

over the life of the Direct Consolidation Loan.)

You can use the chart at the end of this guide to

estimate the monthly and total amounts you would

repay under these repayment plans.You can also get

more precise estimates by using the online calculators

at www.dl.ed.gov.

Keep Your Loan Account Up to Date!

One of the most common reasons a loan goes into default is because we don’t have

current information on a borrower.You must notify the Direct Loan Servicing Center

and/or yourschool’s financial aid office aboutcertain changes.Thisis yourresponsibility.

Until you graduate or leave school, you must notify your school’s financial aid office

and the Direct Loan Servicing Center if you:

u Change your local address, permanent address or telephone number;

u Change your name (for example, maiden name to married name);

u Do not enroll at least half-time for the loan period certified by the school;

u Do not enroll at the school that certified your loan;

u Stop attending school or drop below half-time enrollment;

u Transfer from one school to another school; or

u Graduate.

You must also notify the Direct Loan Servicing Center if

any of these types of changes happen after you leave school.

In addition, you must notify the Direct Loan Servicing Center

if you have any other change that would affect your loan,

for example, if your eligibility for a deferment has ended.
10 | Entrance Counseling Guide

Staying Out of Default

Make sure you take advantage of deferments and forbearances when you need them.

You may qualify for a deferment if:

u You return to school at least half-time at a school that’s eligible to participate in

the Department’s Federal Student Aid programs.

u You are unemployed or meet our rules for economic hardship.

u You are serving on active duty during a war or other military operation or national

emergency, or performing qualifying National Guard duty during a war or other military

operation or national emergency. This deferment is available only for Direct Loans first

disbursed on or after July 1, 2001.

Forbearances also allow you to defer loan payments in certain situations,such as during an illness.

You are delinquent if your monthly payment is not received by the due date. If you

fail to make a payment, we’ll send you a reminder that your payment is late. If your account

remains delinquent, we’ll send you warning notices reminding you of your obligation to

repay your loan and the consequences of default. Late fees may be added if your payments

are late, and your delinquency will be reported to one or more national credit bureaus.

Default occurs when you become 270 days delinquent in making payments on 

your loan. If you default:

u The entire unpaid amount of yourloan

becomes due and payable.

u We will report your default to national

credit bureaus.

u We may sue you, take all or part of your

federal tax refund or other federal payments,

and/or garnish your wages so that your

employer is required to send us part

of your salary to pay off your loan.

u You’ll have to pay collection fees and costs,

plus court costs and attorney fees.

u You’ll lose eligibility for other federal

student aid and most other federal

benefit programs.

u You’ll no longer be eligible for loan

deferments (such as deferments while

you’re in school, unemployed or

experiencing economic hardship).

PHOTO: ©Jupiter Images Corporation, 2006.
Direct Loans on the Web: www.dl.ed.gov | 11

Notepad

Loan Repayment Notes

How much you expect to borrow over the full length 

of your program:

The estimated monthly repayment amount for that 

amount of your loan (see chart on next page):

Your expected monthly take-home 

salary in your new career:

Resources

College costs and other information: www.nces.ed.gov/ipeds/cool/

Occupational Outlook Handbook—average current salaries in different 

career fields: www.bls.gov/oco

Contacts for Your Direct Loans

If you have questions about your eligibility, the amount you can borrow or disbursements, 

contact the school you are attending.

Once your loan has been disbursed, you may contact the Direct Loan Servicing Center for help, 

especially if you’re having trouble repaying or you need to report a change of address or a 

name change: 800-848-0979 or (TTY) 800-848-0983.

Direct Loans on the Web: www.dl.ed.gov

You can use this Web site to look up your account information, change your address, request a deferment, make online payments or set up automatic payments, change your billing options, etc. You 

will need to use your Personal Identification Number (PIN) to see your account information. Most 

students receive their PIN in a separate mailing after they first apply for aid. If you can’t find your 

PIN, you can request a new one at Direct Loans on the Web at www.dl.ed.gov

Direct Loans are also reported to the National Student Loan Data System (NSLDS), accessible at 

www.nslds.ed.gov, which maintains your overall financial aid history for federal student aid. 
12 | Entrance Counseling Guide

Estimated Direct Loan Repayment Amounts 

by Type of Repayment Plan and Debt Amounts.1

Initial Debt

When You 

Entered

Repayment

Standard Extended2, 3

(fixed) Graduated

Income 

Contingent 5, 6

Income = $15,000

Single

Per 

Month Total Per Month Total Per4Month Total Per Month Total

3,500 50 4,471 Not available 25 5,157 21 6,939

5,000 58 6,905 Not available 40 7,278 30 9,912

5,500 63 7,595 Not available 43 8,007 33 10,903

7,500 86 10,357 Not available 59 10,919 45 14,868

10,500 121 14,500 Not available 83 15,283 64 20,815

15,000 173 20,714 Not available 119 21,834 87 29,685

18,500 213 25,548 Not available 146 26,929 87 35,992

23,000 265 31,762 Not available 182 33,479 87 43,141

30,000 345 41,429 Not available 237 43,668 87 52,340

40,000 460 55,239 277 83,289 316 58,229 87 62,005

46,000 529 63,524 319 95,782 363 66,956 87 66,084

50,000 575 69,048 347 104,111 395 72,778 87 68,153

60,000 690 82,858 391 140,816 474 87,334 87 71,219

70,000 806 96,667 456 164,285 535 101,890 87 71,721

80,000 920 110,477 522 187,754 632 116,445 87 71,721

90,000 1,036 124,287 587 211,224 711 131,002 87 71,721

100,000 1,151 138,096 652 234,693 790 145,556 87 71,721

110,000 1,266 151,906 717 258,162 869 160,111 87 71,721

120,000 1,381 165,716 782 281,632 948 174,668 87 71,721

130,000 1,496 179,525 848 305,101 1,024 189,224 87 71,721

138,500 1,594 191,264 903 325,050 1,094 201,596 87 71,721

1 The payments were estimated using the fixed interest rate of 6.80% for loans made to students on or after July 1, 2006.

2 This repayment plan is available to borrowers who had no outstanding balance on a Direct Loan as of Oct. 7, 1998, 

or on the date the borrower obtained a Direct Loan on or after Oct. 7, 1998, and if the borrower has an outstanding 

Direct Loan balance that exceeds $30,000.

3 These amounts are fixed, rounded to the nearest dollar, and are calculated based on a 25-year repayment term.

4 This is the beginning payment, which may increase during a 10-year repayment term.

5 Assumes a 5% annual income growth (U.S. Census Bureau).

6 The estimated payments were calculated using the formula requirements in effect during 2006.

7 HOH is Head of Household; assumes a family size of two.
Income 

Contingent5, 6

Income = $15,000

Income Contingent5, 6

Income = $25,000

Income Contingent5, 6

Income = $45,000

Married/HOH7 Single Married/HOH7 Single Married/HOH7

Per 

Month Total Per Month Total Per Month Total Per Month Total Per Month Total

20 6,673 27 6,092 25 6,405 36 5,128 36 5,128

29 9,533 38 8,703 36 9,150 51 7,326 51 7,326

30 10,463 42 9,574 40 10,065 56 8,059 56 8,059

30 14,019 57 13,055 54 13,725 76 10,989 76 10,989

30 18,877 80 18,277 76 19,215 107 15,385 107 15,385

30 25,229 114 26,110 108 27,451 153 21,978 153 21,978

30 29,465 140 32,203 134 33,856 188 27,106 188 27,106

30 34,128 174 40,036 166 42,091 234 33,699 234 33,699

30 39,756 228 52,221 197 55,743 407 43,956 407 43,956

30 44,827 253 72,717 197 84,352 468 58,608 468 58,608

30 46,378 253 89,828 197 105,472 509 67,399 509 67,399

30 46,860 253 103,268 197 111,575 587 73,260 587 73,260

30 46,934 253 136,615 197 124,085 587 88,251 587 88,251

30 46,934 253 148,551 197 133,106 587 106,551 587 106,551

30 46,934 253 157,373 197 138,907 587 128,146 587 128,146

30 46,934 253 163,227 197 141,925 587 152,967 587 152,967

30 46,934 253 166,457 197 142,386 587 181,224 587 181,224

30 46,934 253 167,172 197 142,386 587 213,485 587 213,485

30 46,934 253 167,172 197 142,386 587 250,281 587 250,281

30 46,934 253 167,172 197 142,386 587 292,313 587 292,313

30 46,934 253 167,172 197 142,386 587 332,912 587 332,912

For more customized estimates, use the Direct Loan Servicing Center’s 

online repayment calculator at: www.dl.ed.gov

Direct Loans on the Web: www.dl.ed.gov | 13
14 | Entrance Counseling Guide

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Rights and Responsibilities Summary

Checklist—Entrance Counseling

I understand that I have a right to the following (check all boxes as you read):

q Written information on my loan obligations and information on my rights and responsibilities as a borrower

q A grace period and an explanation of what this means

qA disclosure statement, received before I begin to repay my loan, that includes information about interest rates, 

fees, the balance I owe, and the number of payments

q Deferment of repayment or forbearance for certain defined periods, if I qualify and if I request deferment 

or forbearance

q Prepayment of my loan in whole or in part anytime without an early-repayment penalty

qA copy of my MPN either before or at the time my loan is disbursed

q Documentation that my loan is paid in full 

I understand I am responsible for (check all boxes as you read):

q Completing exit counseling before I leave school or drop below half-time enrollment

q Repaying my loan even if I do not complete my academic program, I am dissatisfied with the education 

I received, or I am unable to find employment after I graduate

q Notifying my school and the Direct Loan Servicing Center if I:

• Move/change my address,

• Change my name,

• Withdraw from school or drop below half-time enrollment,

• Transfer to another school, 

• Fail to enroll or re-enroll in school for the period for which the loan was intended,

• Change my expected graduation date or

• Graduate.

q Making monthly payments on my loan after my grace period ends, unless I have a deferment or a forbearance 

and repayment options will be provided during exit counseling.

q Notifying the Direct Loan Servicing Center of anything that might alter my eligibility for an existing deferment 

or forbearance

I have received entrance counseling materials for Direct Subsidized Loan and Direct Unsubsidized 

Loan borrowers. I have read and I understand my rights and responsibilities as a borrower. 

I understand that I have a loan from the federal government that must be repaid.

Student’s Name (Please Print)

Student’s Signature

Student’s Social Security Number

Date

Direct Loans on the Web: www.dl.ed.gov | 15