ENTRANCE

COUNSELING GUIDE

For Direct Loan Borrowers
ENTRANCE COUNSELING GUIDE

For Direct Loan Borrowers

CONTENTS

TYPES OF DIRECT LOANS

Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, 

Direct Consolidation 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? 6

GETTING A LOAN

The Master Promissory Note 7

How your loan money is paid 7

PAYING BACK YOUR LOAN

Repayment options 9

Keep your loan account updated! 10

Staying out of default 11

Loan repayment by plan and amount 12

NOTEPAD......................................................................14

RIGHTS & RESPONSIBILITIES SUMMARY CHECKLIST....17

RESOURCES FOR MORE INFORMATION........................19

COVER PHOTO: ©Jupiter Images Corporation, 2008. November 2008

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/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.
Direct Loans on the Web: www.direct.ed.gov | 1

Types of Direct Loans

u Direct Subsidized Loans

Direct 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 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

Unsubsidized Loans for parents of 

dependent students. Graduate and 

professional students also may 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. Borrowers can 

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:
2 | 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 such 

factors 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 Loansa

Dependent 

Undergraduate Studentsb

Independent 

Undergraduate Studentsb

First Year (freshman) $5,500 (maximum $3,500 subsidized) $9,500 (maximum $3,500 subsidized)

Second Year (sophomore) $6,500 (maximum $4,500 subsidized) $10,500 (maximum $4,500 subsidized)

Third Year (junior) and beyond $7,500 (maximum $5,500 subsidized) $12,500 (maximum $5,500 subsidized)

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

Aggregate Loan Limits: Maximum Total Outstanding Loan Debt

Dependent 

Undergraduate Studentsb

Independent 

Undergraduate Studentsc

Undergraduate $31,000 (maximum $23,000 subsidized) $57,500 (maximum $23,000 subsidized)c

Graduate and Professional N/A $138,500

a

 The annual loan limits do not include loan limits for independent undergraduate students enrolled in preparatory 

 course work required for admission to an undergraduate program.

b

 Dependent students whose parents are unable to get PLUS Loans are eligible to apply for the independent undergradate loan limits.

c

 The graduate/professional maximum includes Stafford Loans received for undergraduate study.

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 is 

fixed at 7.9%.
Direct Loans on the Web: www.direct.ed.gov | 3

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 also can 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 also can 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 work sheet and calculator at: 

www.ed.gov/offices/OSFAP/DirectLoan/calc.html. Also see pp. 12–14 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.
4 | 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 $48,000. After 

taxes, she expects to have about $33,600 of available 

income a year. Divided by 12, this gives 

her a monthly budget of $2,800. 

Based on this budget, Myra can afford student loan payments of approximately $168 a month. 

Looking at the repayment chart on pp. 12–13 of this booklet, this would mean that Myra can 

afford to borrow approximately $15,000 under the Standard Repayment Plan. 

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

due to inflation or other factors.

Example of Student Expenses and Budget

Monthly Expenses

Percentage of 

Monthly 

Take-Home Pay

Sample 

Budget

Your 

Budget

Rent/Mortgage 33% $924 

Groceries 15% $420

Clothing 5% $140

Car payments & insurance 12% $336

Utility bills (gas, electric, water, 

telephone, cable) 7% $196

Medical (insurance, doctor visits, etc.) 5% $140

Entertainment & recreation (dining 

out, movies, music, vacation trips) 7% $196

Other debts (including credit card debt) 5% $140

Miscellaneous/Savings 5% $140

Student loan payments 6% $168

TOTAL 100% $2,800
Direct Loans on the Web: www.direct.ed.gov | 5

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 low-income 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.

If you are employed in certain public service jobs and have made 120 payments on your Direct 

Loans (on or after Oct. 1, 2007), the remaining balance that you owe may be forgiven. Only payments 

made under certain repayment plans may be counted toward the required 120 payments. You 

must not be in default on the loans that are forgiven. Contact the Direct Loan Servicing Center 

for more information on the Public Service Loan Forgiveness Program. 

How much interest do I have to pay?

Direct Subsidized and Unsubsidized Loans have a fixed interest rate. Fixed rates are just that: 

a set rate for the life of the loan.

The interest rate on Direct Subsidized Loans for undergraduate students is based on the first 

disbursement date as listed in the table below. The interest rate for Direct Unsubsidized Loans 

is fixed at 6.8%. 

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. 

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.

Interest Rates for Direct Subsidized Loans

 First Disbursement Date of Your Loan Interest Rate

On or after July 1, 2006 and prior to July 1, 2008 6.8% 

On or after July 1, 2008 and prior to July 1, 2009 6.0% 

On or after July 1, 2009 and prior to July 1, 2010 5.6% 

On or after July 1, 2010 and prior to July 1, 2011 4.5% 

On or after July 1, 2011 and prior to July 1, 2012 3.4% 
6 | Entrance Counseling Guide

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 then will 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.

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.
Direct Loans on the Web: www.direct.ed.gov | 7

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.

Many 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

If you want to sign a separate

MPN for each loan that you

receive rather than using one

MPN to cover all of your 

Direct Loans, you must notify 

your school.
8 | Entrance Counseling Guide

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 

Department’s Direct Loan Servicing 

Center (go to www.dl.ed.gov for 

contact information) 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 such school 

charges as tuition, room and board, fees and 

such indirect expenses 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, 2008.

PHOTO: ©Jupiter Images Corporation, 2008.

*Check with your school for their definition of half-time enrollment.
Direct Loans on the Web: www.direct.ed.gov | 9

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 (www.dl.ed.gov for contact information). 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 then will 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. Beginning 

July 1, 2009, student PLUS loan borrowers may choose this plan.

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.

* 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.
10 | Entrance Counseling Guide

Effective July 1, 2009, a new income-based repayment plan will 

become available to Direct Loan borrowers (parent Direct PLUS 

Loan borrowers may not repay their Direct PLUS Loans under 

this new plan).

INCOME-BASED REPAYMENT PLAN—Your required 

monthly payment amount will be based on your income during 

any period when you have a partial financial hardship. Your 

monthly payment amount may be adjusted annually. The maximum repayment period under 

this plan may exceed 10 years. If you meet certain requirements over a specified period of time, 

you may qualify for cancellation of any outstanding balance on your loans.

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 updated!

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 your 

school’s financial aid office about certain changes. This is your responsibility. 

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.

Keep in Contact!

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.
Direct Loans on the Web: www.direct.ed.gov | 11

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 you are performing qualifying National Guard duty during a war or 

other military operation or national emergency, and if you are serving on or after Oct. 1, 2007, 

for the 180-day period following the demobilization date for your qualifying service. 

u You are a member of the National Guard or other reserve component of the U.S. 

Armed Forces (current or retired) and are called or ordered to active duty while 

enrolled at an eligible school, or within 6 months after having been enrolled. 

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 your loan becomes due and 

payable.

u We will report your default to national credit bureaus.

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

refund or other federal payments, or garnish your wages so 

that your employer is required to send us part of your salary 

to pay off your loan, or a combination of these actions.

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, 2008.
12 | Entrance Counseling Guide

Estimated Direct Subsidized and Unsubsidized Loan Repayment 

Amounts by Type of Repayment Plan and Debt Amounts.a

Initial Debt

When You 

Entered

Repayment

Standard Extended

Fixedb, c Graduated

Income 

Contingente, f

Income = $15,000

Single

Per 

Month Total Per Month Total Perd

Month 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

a

 The estimated payments were calculated using a fixed interest rate of 6.80%.

b This repayment plan is available only to borrowers who have an outstanding balance on Direct Loan Program 

loans that exceeds $30,000, and who had no outstanding balance on a Direct Loan Program loan as of 

Oct. 7, 1998 or on the date they obtained a Direct Loan Program loan on or after Oct. 7, 1998.

c

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

d

 This is your beginning payment, which may increase during your 10-year repayment term.

e

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

f

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

g HOH is head of household; assumes a family size of two.
Direct Loans on the Web: www.direct.ed.gov | 13

Income 

Contingente, f

Income = $15,000

Income Contingente, f

Income = $25,000

Income Contingente, f

Income = $45,000

Married/HOHg Single Married/HOHg Single Married/HOHg

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.
14 | Entrance Counseling Guide

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.

If you want to learn more about the Direct Loan Program, go to the Direct Loan Web site at: 

www.direct.ed.gov.

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: 1-800-848-0979 or (TTY) 1-800-848-0983.

Direct Loan Servicing Online at: www.dl.ed.gov

You can use this Web site to look up your account information, change your address, request 

a deferment, learn about making 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 Loan Servicing Online at: 

www.dl.ed.gov

Direct Loans also are 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. 
Direct Loans on the Web: www.direct.ed.gov | 15

NoteS
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Direct Loans on the Web: www.direct.ed.gov | 17

Student’s Name (Please Print)

Student’s Signature

Student’s Social Security Number

Date

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:

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 or change my address;

• Change my name;

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

• Transfer to another school;

• Fail to enroll or reenroll 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.
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Direct Loans on the Web: www.direct.ed.gov | 19

RESOURCES FOR MORE INFORMATION

General information about student aid and applying for student aid:

Federal Student Aid Information Center 

1-800-4-FED-AID

1-800-433-3243

(TTY 1-800-730-8913)

Student Aid on the Web:

www.studentaid.ed.gov

Visit the Web site or call for general information about student aid. From the

Web site, you can access a variety of student aid publications in English and

Spanish, including Funding Education Beyond High School: The Guide

to Federal Student Aid, a comprehensive overview of the financial aid process.

For information about everything related to Direct Loan Repayment:

Borrower Services at the Direct Loan Servicing Center

1-800-848-0979

(TTY 1-800-848-0983)

Direct Loan Servicing Online:

www.dl.ed.gov

For information about Direct Loans:

Direct Loans on the Web:

www.direct.ed.gov

Track your outstanding federal student loans:

National Student Loan Data System (NSLDS) Web site:

www.NSLDS.ed.gov

Note: NSLDS only tracks federal student loans; you will need to track 

any private education loans you may have using your own records.

For everything you need to know about Direct Consolidation Loans, including an 

online application:

Direct Loan Consolidation Center

1-800-557-7392

(TTY 1-800-557-7395)

Direct Loan Consolidation Web site:

www.loanconsolidation.ed.gov