Your MPN does not show a specific loan amount because it may also serve as your promissory note for future loans. This is a need-based loan. Repayment of the principal and interest on the loan begins six months after the borrower ceases to be enrolled at least half time. If your financial need limits your eligibility for the full grade-level maximum in the Federal Direct Subsidized Loan you may borrow the remainder in the unsubsidized loan. This loan has the same interest rate and origination fee as the subsidized loan, but the interest will accrue while you are enrolled.
Interest begins to accrue the first day of disbursement.
Interest payments may be paid quarterly or they may be deferred until you cease to be enrolled at least half time. The Loan Servicer will contact you to establish how you plan to pay the interest. Loan proceeds exceeding university charges are sent to the student in the form of a refund check. Accepting Federal Direct Loans 1. Sign, date the top copy of the award letter, and 2.