dwb2023/document-loader-jul2025 huggingface dataset:
Chapter	1
Student	and	Parent	Eligibility	for	Direct	Loans
Overview
To	be	eligible	for	Direct	Loans,	a	student	must	be	enrolled	on	at	least	a	half-time	basis	at	a	school	that	participates	in	the
Direct	Loan	Program,	and	students	and	parents	must	meet	the	general	federal	student	aid	eligibility	requirements
covered	in	Volume	1	of	the	Federal	Student	Aid	Handbook.	This	chapter	discusses	other	eligibility	requirements	that	are
specific	to	the	Direct	Loan	Program.
Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans
Only	students	who	have	financial	need	may	receive	Direct	Subsidized	Loans.	The	federal	government	does	not	charge
interest	on	Direct	Subsidized	Loans	while	the	borrower	is	enrolled	on	at	least	a	half-time	basis,	during	the	grace	and
deferment	periods,	and	during	certain	other	periods	(for	example,	during	certain	periods	of	repayment	under	certain
repayment	plans	that	determine	the	required	monthly	payment	amount	based	on	the	borrower9s	income	and	family	size).
If	a	student	has	received	a	determination	of	need	for	a	Direct	Subsidized	Loan	in	an	amount	of	$200	or	less,	a	school	may
choose	not	to	originate	a	Direct	Subsidized	Loan	and	may	instead	include	that	amount	as	part	of	a	Direct	Unsubsidized
Loan.
Financial	need	is	not	an	eligibility	requirement	to	receive	a	Direct	Unsubsidized	Loan.	The	federal	government	generally
charges	interest	on	Direct	Unsubsidized	Loans	during	all	periods,	with	limited	exceptions	(for	example,	during	periods	of
deferment	for	cancer	treatment).
To	be	eligible	to	receive	a	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan,	an	undergraduate	student	attending	a
school	that	participates	in	the	Federal	Pell	Grant	Program	must	first	have	received	a	determination	of	their	Pell	Grant
eligibility	for	the	period	of	enrollment	for	which	the	student	is	requesting	a	loan.
No	Minimum	Age	To	Receive	a	Direct	Loan
Students	who	are	minors	may	receive	Direct	Loans,	but	they	may	not	refuse	to	repay	the	loans	based	on	a	<defense	of
infancy=	(that	is,	by	claiming	that	they	were	too	young	to	enter	into	the	contract	of	signing	the	promissory	note).
Requirement	To	Offer	Both	Subsidized	and	Unsubsidized	Loans
Direct	Subsidized	and	Direct	Unsubsidized	Loans	are	two	components	of	a	single	loan	program.	A	school	may	not	choose
to	make	only	Direct	Subsidized	Loans	or	only	Direct	Unsubsidized	Loans	available	to	its	eligible	students.	For	more
Direct	Loan	Program	Regulations
34	CFR	Part	685
No	Defense	of	Infancy
Higher	Education	Act	(HEA)	Sec.	484A(b)(2)
"Y"	=	The	borrower	is	in	default	on	a	Title	IV	loan.
"E"	=	Unable	to	determine	if	the	borrower	is	in	default	on	a	Title	IV	loan.
If	the	result	is	"N,"	a	student	or	parent	Direct	PLUS	Loan	applicant	who	meets	all	other	Direct	PLUS	Loan	eligibility
requirements	may	receive	a	Direct	PLUS	Loan.
If	the	result	is	"Y,"	the	student	or	parent	may	not	receive	a	Direct	PLUS	Loan	(or	any	other	
Title	IV	aid)	until	the	default
status	is	resolved	(see	"Resolving	Default	Status"	in	Volume	1,	Chapter	3	for	more	information).
A	result	of	"E"	may	be	reported	if	for	some	reason	it	was	not	possible	to	conclusively	determine	that	the	applicant	is	not	in
default.	An	<E=	result	is	most	commonly	due	to	temporary	systems	issues	involving	the	interface	between	the	Direct	PLUS
Loan	Application	and	NSLDS.	In	this	case,	if	the	Direct	PLUS	Loan	applicant	is	a	graduate	or	professional	student	and	the
NSLDS	match	performed	by	the	FPS	indicates	that	the	student	is	not	in	default,	you	may	rely	on	the	results	of	that	check.
If	the	applicant	is	a	parent,	you	must	separately	check	NSLDS	to	confirm	that	the	parent	is	not	in	default	before
originating	a	Direct	PLUS	Loan.
Ineligible	Borrowers
The	Department	may	determine	that	a	borrower	was	ineligible	to	receive	a	Direct	Loan	if,	at	the	time	the	loan	was	made
and	without	the	knowledge	of	the	Department	or	the	school,	the	borrower	(or	the	dependent	student	on	whose	behalf	a
parent	received	a	Direct	PLUS	Loan)	provided	false	information,	was	convicted	of	or	pled	no	contest	or	guilty	to	a	crime
involving	fraud	in	obtaining	
Title	IV	funds,	or	took	actions	that	caused	the	borrower	or	student	to	receive:
Loan	funds	for	which	they	were	wholly	or	partially	ineligible;
Interest	benefits	on	a	loan	for	which	they	were	ineligible;	or
Loan	funds	for	a	period	of	enrollment	for	which	they	were	ineligible.
If	the	Department	determines	that	a	Direct	Loan	borrower	was	ineligible,	the	Department	sends	the	borrower	a	demand
letter	that	requires	the	borrower	to	repay	some	or	all	of	the	loan	the	borrower	received,	as	applicable,	within	30	days.	If
the	borrower	fails	to	comply	with	the	letter,	the	borrower	is	considered	in	default	on	the	entire	loan.
IMPORTANT:	If	you	do	not	require	Direct	PLUS	Loan	applicants	at	your	school	to	complete	the	Direct	PLUS	Loan
Application,	you	must	check	NSLDS	for	all	parent	Direct	PLUS	Loan	applicants	to	confirm	that	they	are	not	in
default	before	originating	Direct	PLUS	Loans	for	these	individuals.
Direct	PLUS	Loan	Application	NSLDS	Default	Check
October	18,	2016	Electronic	Announcement
Ineligible	Borrowers
34	CFR	685.211(e)
Direct	Loans	at	Multiple	Schools
A	student	who	is	concurrently	enrolled	and	eligible	at	more	than	one	school	may	receive	Direct	Loans	at	each	school.	If
the	student	is	receiving	Direct	Subsidized	Loans	or	Direct	Unsubsidized	Loans,	the	schools	that	the	student	is	attending
are	responsible	for	coordinating	to	make	sure	that	the	total	amount	of	the	loans	the	student	receives	does	not	exceed	the
applicable	annual	or	aggregate	loan	limit.	In	addition,	the	schools	must	ensure	that	there	is	no	duplication	of	non-
institutional	costs	when	determining	the	student9s	COA.	Note	that	in	the	situation	where	a	student	is	concurrently	enrolled
and	eligible	at	more	than	one	school,	which	is	different	than	the	consortium	arrangements	discussed	in	
Volume	2,	Chapter
2,	loan	funds	awarded	at	one	school	are	not	to	be	included	as	OFA	by	any	other	school	the	student	is	attending	when
determining	the	student9s	loan	eligibility	for	the	same	period.
Exceptions	to	the	<Regular	Student=	Requirement	for	Direct	Loans
As	explained	in	Volume	1,	Chapter	1,	one	of	the	eligibility	requirements	for	a	student	to	receive	Title	IV	aid	is	that	the
student	must	be	enrolled	at	an	eligible	school	for	the	purpose	of	obtaining	a	degree	or	certificate	offered	by	the	school.
Such	a	student	is	known	as	a	<regular	student.=	However,	there	are	two	limited	exceptions	to	this	requirement	for	Direct
Loans:	preparatory	coursework	and	teacher	certification	coursework.
Preparatory	Coursework
A	student	may	receive	a	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	(or	a	parent	may	receive	a	Direct	PLUS	Loan
on	behalf	of	a	dependent	student)	for	preparatory	coursework	that	the	school	has	documented	is	necessary	for	the
student	to	enroll	in	an	eligible	program.	The	preparatory	courses	must	be	offered	as	part	of	an	eligible	program	offered	by
the	school,	though	the	student	does	not	have	to	be	enrolled	in	that	program.	A	school	may	not	award	Direct	Loans	for
standalone	courses	that	do	not	count	towards	an	eligible	program	and	exist	solely	to	serve	as	preparatory	coursework.
A	student	who	is	enrolled	at	least	half	time	in	preparatory	coursework	as	described	above	is	eligible	to	receive	loans	for	a
maximum	of	one	consecutive	12-month	period	(not	per	program)	beginning	on	the	first	day	of	the	loan	period.	If	the
consecutive	12-month	period	of	preparatory	coursework	spans	more	than	one	academic	year,	the	student	may	receive
more	than	one	annual	loan	limit.
To	be	eligible	for	loans	under	this	exception,	the	student	must	be	taking	classes	that	are	a	prerequisite	for	admission.	A
student	who	is	only	taking	courses	to	raise	their	grade-point	average	in	order	to	be	admitted	does	not	qualify.
Preparatory	Coursework	at	a	Different	School
Regular	Student
34	CFR	600.2
Preparatory	Coursework
34	CFR	668.32(a)(1)(ii)
34	CFR	685.203(a)(6)	and	(c)(2)(vi)
A	student	may	take	the	preparatory	courses	at	School	A	(as	long	as	the	courses	are	part	of	an	eligible	program	there)	that
are	required	for	admission	into	a	program	at	School	B.	As	the	awarding	school,	School	A	may	require	documentation	from
School	B	that	these	courses	are	required	for	the	student9s	subsequent	enrollment.
Teacher	Certification	Coursework
A	student	may	receive	a	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	(or	a	parent	may	receive	a	Direct	PLUS	Loan
on	behalf	of	a	dependent	student)	for	courses	that	the	student	must	complete	to	receive	a	professional	credential	or
certificate	from	a	state	that	is	required	for	employment	as	an	elementary	or	secondary	school	teacher	in	that	state,	even
though	the	school	where	the	student	takes	the	courses	does	not	award	a	degree	or	other	credential	upon	the	completion
of	that	coursework.
Volume	8,	Chapter	1,	Example	1:	Eligible	Preparatory	Coursework
A	student	who	previously	received	a	bachelor9s	degree	with	a	major	in	mathematics	now	wants	to	enroll	in	a
graduate	computer	science	program.	The	student	needs	12	more	semester	hours	of	computer	science	coursework
to	meet	the	admission	requirements	of	the	school	that	offers	the	program.	The	student	enrolls	in	courses	that	are
part	of	one	of	the	school9s	undergraduate	degree	programs,	but	is	not	enrolled	for	the	purpose	of	receiving	a
degree	and	therefore	is	not	a	regular	student.	However,	because	the	coursework	is	necessary	for	enrollment	in
the	graduate	program,	the	student	may	receive	Direct	Loans	for	this	coursework	(for	a	maximum	of	one
consecutive	12-month	period).
Volume	8,	Chapter	1,	Example	2:	Ineligible	Preparatory	Coursework
A	nursing	school	offers	a	2-year	program	leading	to	a	diploma.	This	is	the	only	Title	IV	eligible	program	offered	by
the	school.	To	be	admitted	to	the	program,	students	must	have:
Received	a	high	school	diploma	or	general	educational	development	(GED)	certificate;
Completed	Human	Anatomy	and	Physiology	with	a	minimum	grade	of	<C=;
Completed	college	level	English	Composition	with	a	minimum	grade	of	<C=;	and
Completed	college	level	Algebra	with	a	minimum	grade	of	<C=.
For	applicants	who	have	not	successfully	completed	post-secondary	courses	in	Human	Anatomy	and	Physiology,
English	Composition,	and	Algebra,	the	school	offers	8-week	courses	that	upon	successful	completion	qualify
applicants	for	admission.	Because	the	school	does	not	offer	a	Title	IV	eligible	program	that	includes	its	courses	in
Human	Anatomy	and	Physiology,	English	Composition,	and	Algebra,	students	enrolled	in	those	stand-alone
courses	are	not	eligible	to	receive	Title	IV	funds.
Teacher	Certification	Coursework
34	CFR	668.32(a)(1)(iii)
34	CFR	685.203(a)(7)	and	(c)(2)(vii)
Direct	Loan	Eligibility	After	an	Enrollment	Status	Change
If	a	student	who	received	a	disbursement	of	Direct	Loan	funds	prior	to	the	first	day	of	classes	of	a	payment	period	begins
attendance	on	a	less-than-half-time	basis,	there	is	no	requirement	for	the	school	or	the	student	to	return	the	loan	funds	as
long	as:
The	student	began	attendance	in	at	least	one	course	during	the	payment	period;	and
At	the	time	of	the	loan	disbursement	the	student	was	enrolled	(registered)	for	classes	on	at	least	a	half-time	basis.
However,	the	school	must	not	make	any	subsequent	disbursements	of	the	loan	unless	the	student	resumes	enrollment	on
at	least	a	half-time	basis	during	the	payment	period.
A	student	who	is	no	longer	enrolled	at	least	half	time	may	not	receive	as	a	late	disbursement	any	second	or	subsequent
disbursement	of	the	loan.
Note	that	different	requirements	apply	if	a	student	who	received	a	Direct	Loan	disbursement	prior	to	the	first	day	of
classes	fails	to	begin	attendance	in	any	classes.	See	<When	A	Student	Fails	to	Begin	Attendance=	in	
Volume	4,	Chapter	3.
If	a	student	does	not	withdraw	but	ceases	to	be	enrolled	on	at	least	a	half-time	basis,	a	school	may	make	a	late
disbursement	of	a	Direct	Loan	for	costs	incurred	by	the	student	for	a	period	in	which	the	student	was	eligible.	However,
this	does	not	apply	if	the	student	dropped	all	future	classes	or	modules,	because	the	student	never	began	classes	as	a
half-time	student.
Title	IV	program	funds	(including	Direct	Loans)	are	disbursed	to	a	student	on	the	presumption	that	the	student	will	attend
the	hours	for	which	aid	has	been	awarded.	Therefore,	a	school	is	not	required	to	delay	the	disbursement	of	a	Direct	Loan
until	a	student	has	begun	attendance	in	enough	hours	to	establish	half-time	enrollment	status.	However,	if	a	school	has
not	yet	made	a	Direct	Loan	disbursement	to	a	student	who	has	dropped	classes,	and	the	school	determines	that	the
student	never	began	attendance	in	enough	classes	to	establish	half-time	enrollment	status,	the	school	may	not	make	a
first	disbursement	of	a	Direct	Loan	to	that	student.
Likewise,	if	a	student	who	was	enrolled	in	a	series	of	modules	drops	all	future	classes	before	beginning	attendance	in
enough	modules	to	establish	half-time	enrollment	status,	the	school	may	not	make	a	first	disbursement	of	a	Direct	Loan
because	the	student	never	began	attendance	on	at	least	a	half-time	basis.	If	a	student	who	dropped	to	less-than-half-time
status	resumes	enrollment	on	a	half-time	basis	during	the	payment	period	or	period	of	enrollment,	the	school	may	make
remaining	disbursements	of	a	Direct	Loan	if	the	school	documents	(1)	the	student9s	revised	COA,	and	(2)	that	the	student
continues	to	qualify	for	the	entire	amount	of	the	loan,	despite	any	reduction	in	the	student9s	COA	caused	by	the
temporary	cessation	of	enrollment	on	at	least	a	half-time	basis.
DCL	GEN-16-10
Late	Disbursements	for	Students	Who	Cease	To	Be	Enr olled	at	Least	Half	Time
34	CFR	668.164(j)(3)(iii)
Direct	Loan	Disbursements	to	Students	Who	Temporari ly	Cease	Half-Time	Enrollment
34	CFR	685.303(b)(3)(iv)
Repayment	of	the	Excess	Loan	Amount
If	a	student	who	has	inadvertently	overborrowed	wishes	to	regain	
Title	IV	eligibility	by	repaying	the	excess	loan	amount,
the	student	must	contact	the	applicable	servicer	and	comply	with	the	servicer9s	repayment	instructions.	The	school	may
assist	the	student	in	identifying	and	contacting	the	servicer,	but	the	student,	not	the	school,	must	make	the	payment	of
the	excess	loan	funds	in	accordance	with	the	servicer9s	instructions.	Once	the	student	has	repaid	the	excess	loan	amount
in	full,	the	servicer	will	send	the	student	confirmation	that	the	excess	loan	amount	has	been	repaid.	The	student	or
servicer	must	provide	a	copy	of	the	repayment	confirmation	to	the	school.	The	inadvertent	overborrowing	is	considered	to
have	been	resolved	as	of	the	date	the	servicer	received	the	borrower9s	full	payment	of	the	excess	loan	amount.
Satisfactory	Repayment	Arrangements	(<Reaffirmation=)
A	student	who	has	inadvertently	overborrowed	may	also	regain	Title	IV	eligibility	by	making	satisfactory	repayment
arrangements	to	repay	the	excess	loan	amount.	This	requirement	can	be	met	if	the	student	agrees	in	writing	to	repay	the
excess	amount	according	to	the	terms	and	conditions	of	the	promissory	note	that	supported	the	loan.	This	is	called
<reaffirmation.=	The	reaffirmation	process	includes	the	following	five	steps:
1.	 Either	the	student	or	the	school	where	the	student	is	requesting	additional	Title	IV	funds	contacts	the	servicer	of	the
loan	that	caused	the	overborrowing	and	explains	that	the	student	has	inadvertently	overborrowed	and	wishes	to
reaffirm	the	debt.
2.	 The	servicer	sends	the	student	a	reaffirmation	agreement.
3.	 The	student	reads,	signs,	and	returns	the	reaffirmation	agreement	to	the	servicer.
4.	 The	servicer	sends	the	student	confirmation	that	the	reaffirmation	agreement	has	been	accepted.	The	student	or
servicer	must	provide	a	copy	of	the	confirmation	to	the	school	where	the	student	is	requesting	Title	IV	funds.
5.	 The	inadvertent	overborrowing	is	considered	to	have	been	resolved	as	of	the	date	the	servicer	receives	the	student9s
signed	reaffirmation	agreement.
Consolidation	of	Loan	Amounts	That	Exceed	the	Annual	or	Aggregate	Loan	Limit
If	a	borrower	who	inadvertently	received	more	than	the	annual	or	aggregate	loan	limits	has	consolidated	the	loan(s)	that
caused	the	borrower	to	exceed	the	loan	limit	into	a	Direct	Consolidation	Loan,	the	Direct	Consolidation	Loan	is	considered
a	satisfactory	arrangement	to	repay	the	excess	amount.	This	restores	the	borrower9s	eligibility	for	Title	IV	aid.	If	the	school
where	the	student	is	seeking	aid	confirms	through	NSLDS	that	the	loan(s)	have	been	consolidated,	no	further	action	is
required.	Note,	however,	that	consolidation	of	an	amount	that	exceeded	the	combined	aggregate	loan	limit	for	Direct
Subsidized	Loans	and	Direct	Unsubsidized	Loans	does	not	automatically	make	a	student	eligible	for	additional	Direct	Loan
funds.
before	the	student	can	receive	additional	Title	IV	aid.
Regaining	 Title	IV 	Eligibility	After	Inadvertent	Overborrowing
34	CFR	668.35(d)
DCL	GEN-15-20
DCL	GEN-13-02
Department	of	Education	Office	of	the	Inspector	Gen eral	Hotline
Refusing	To	Originate	a	Loan	or	Originating	for	Less	Than	a	Borrower9s	Maximum	Eligibility
On	a	case-by-case	basis,	you	may	refuse	to	originate	a	Direct	Loan	for	an	individual	borrower,	or	you	may	originate	a	loan
for	an	amount	less	than	the	borrower9s	maximum	eligibility.	If	you	choose	to	exercise	this	discretion,	you	must	ensure
that	your	decisions	are	made	on	a	case-by-case	basis	and	do	not	constitute	a	pattern	or	practice	that	denies	access	to
Direct	Loans	for	borrowers	because	of	race,	sex,	color,	income,	religion,	national	origin,	age,	or	disability	status.	When	you
make	a	decision	not	to	originate	a	loan	or	to	reduce	the	amount	of	the	loan,	you	must	retain	documentation	supporting
the	determination	in	the	student9s	file	and	provide	the	reason	for	the	determination	to	the	student	in	writing.	Also	note
that	your	school	may	not	have	a	policy	of	limiting	Direct	Loan	borrowing	on	an	across-the-board	or	categorical	basis.	For
example,	you	may	not	have	a	policy	of	limiting	borrowing	to	the	amount	needed	to	cover	the	school	charges,	or	not
allowing	otherwise	eligible	students	to	receive	up	to	the	full	combined	annual	loan	limit	for	Direct	Subsidized	Loans	and
Direct	Unsubsidized	Loans.
Prohibition	on	Establishing	Additional	Eligibility	Requirements	for	Direct	Loans
You	may	not	condition	the	disbursement	of	a	Direct	Loan	on	anything	other	than	the	eligibility	criteria	under	the	federal
regulations	that	govern	the	Direct	Loan	Program.	For	example,	you	may	not:
Require	students	to	participate	in	counseling	beyond	the	required	entrance	counseling	for	first-time	student
borrowers	(see	Chapter	2	of	this	volume	for	more	information)	as	a	condition	for	receiving	a	Direct	Loan;
Require	a	student	to	complete	a	separate	Direct	Loan	application	as	a	condition	for	receiving	a	Direct	Loan;	or
Perform	credit	checks	on	students	in	connection	with	awarding	Direct	Loans	or	other	Title	IV	aid.
Department	of	Education	Office	of	the	Inspector	General	Hotline	Portal
1-800-MIS-USED	(1-800-647-8733)
Refusing	to	Originate	a	Loan
HEA	Sec.	479(A)(e)
34	CFR	685.301(a)(8)
DCL	GEN-11-07
Prohibition	on	Requiring	an	Additional	Application
March	18,	2014	Electronic	Announcement
You	cannot	require,	but	you	can	encourage	borrowers	to	participate	in	counseling	beyond	entrance	counseling	to	be
better	informed	about	borrowing,	the	terms	of	their	Direct	Loans,	their	repayment	responsibilities	and	options,	and	the
consequences	of	default.	Your	school	can	also	offer	financial	literacy	classes,	on	a	credit	or	non-credit	basis,	that	include
information	on	budgeting,	debt	management,	anticipated	earnings	by	profession,	elements	of	loan	counseling,	etc.,
though	eligibility	for	a	Direct	Loan	cannot	be	contingent	on	completion	of	such	a	class.
Required	Entrance	Counseling	Content	for	Direct	Subsidized	Loan	and	Direct	Unsubsidized	Loan	Borrowers
Below	we	provide	a	summary	of	the	information	that	must	be	covered	in	entrance	counseling	for	Direct	Subsidized	Loan
and	Direct	Unsubsidized	Loan	borrowers.	For	more	detailed	information,	refer	to	the	regulations	cited	at	the	end	of	this
section.
Entrance	counseling	for	Direct	Subsidized	and	Unsubsidized	loan	borrowers	must:
Explain	the	use	of	a	Master	Promissory	Note	(MPN);
Emphasize	the	importance	of	the	loan	repayment	obligation;
Describe	the	likely	consequences	of	default,	including	adverse	credit	reports,	delinquent	debt	collection	procedures
under	Federal	law,	and	litigation;
Emphasize	that	the	borrower	must	repay	the	full	amount	of	the	loan	even	if	the	borrower	does	not	complete	the
program,	does	not	complete	the	program	within	the	regular	time	for	program	completion,	is	unable	to	obtain
employment	upon	completion,	or	is	otherwise	dissatisfied	with	or	does	not	receive	the	educational	or	other	services
that	the	student	paid	for	with	the	loan;
Inform	the	student	borrower	of	sample	monthly	repayment	amounts	based	on	a	range	of	student	levels	of
indebtedness	depending	on	the	types	of	loans	the	borrower	has	received,	or	based	on	the	average	indebtedness	of
other	borrowers	in	the	same	program	at	the	same	school;
Explain	how	accepting	the	loan	will	affect	the	borrower9s	eligibility	for	other	forms	of	student	financial	assistance;
Provide	information	on	how	interest	accrues	and	is	capitalized	during	periods	when	the	interest	is	not	paid	by	either
the	borrower	or	the	Department;
Inform	the	borrower	of	the	option	to	pay	the	interest	on	a	Direct	Unsubsidized	Loan	while	the	borrower	is	in	school;
Explain	the	definition	of	half-time	enrollment	at	the	school	and	the	consequences	of	not	maintaining	half-time
enrollment;
Explain	the	importance	of	contacting	the	appropriate	offices	at	the	school	if	the	borrower	withdraws	before
Direct	Loan	Entrance	Counseling
34	CFR	685.304(a)
Loan	Counseling	Requirements	and	Flexibilities
DCL	GEN-15-06
completing	their	program	of	study	so	that	the	school	can	provide	exit	counseling;
Provide	information	on	how	the	borrower	can	access	their	records	in	the	National	Student	Loan	Data	System
(NSLDS);	and
Provide	the	name	of	the	individual	the	borrower	may	contact	if	the	borrower	has	questions	about	the	borrower9s
rights	and	responsibilities	or	the	terms	and	conditions	of	the	loan.
Required	Entrance	Counseling	Content	for	Graduate	and	Professional	Student	Direct	PLUS	Loan	Borrowers
The	information	that	must	be	covered	in	entrance	counseling	for	graduate	and	professional	student	Direct	PLUS	Loan
borrowers	is	summarized	below.	For	more	detailed	information,	refer	to	the	regulations	cited	at	the	end	of	this	section.
Entrance	counseling	for	graduate	or	professional	student	Direct	PLUS	Loan	borrowers	must:
Inform	the	student	borrower	of	sample	monthly	repayment	amounts	based	on	a	range	of	student	levels	of
indebtedness	depending	on	the	types	of	loans	the	borrower	has	received,	or	based	on	the	average	indebtedness	of
other	borrowers	in	the	same	program	at	the	same	school;
Inform	the	borrower	of	the	option	to	pay	interest	on	a	Direct	PLUS	Loan	while	the	borrower	is	in	school;
For	a	graduate	or	professional	student	PLUS	Loan	borrower	who	has	received	a	prior	Direct	Subsidized	Loan,	Direct
Unsubsidized	Loan,	Subsidized	Federal	Stafford	Loan,	or	Unsubsidized	Federal	Stafford	Loan,	provide	the	borrower
with	a	comparison	of:
The	maximum	interest	rate	for	a	Direct	Subsidized	Loan	and	a	Direct	Unsubsidized	Loan	and	the	maximum
interest	rate	for	a	Direct	PLUS	Loan;
Periods	when	interest	accrues	on	a	Direct	Subsidized	Loan	and	a	Direct	Unsubsidized	Loan	and	periods	when
interest	accrues	on	a	Direct	PLUS	Loan;	and
The	point	when	a	Direct	Subsidized	Loan	and	a	Direct	Unsubsidized	Loan	enters	repayment,	and	the	point	when
a	Direct	PLUS	Loan	enters	repayment;	and
For	a	graduate	or	professional	student	PLUS	Loan	borrower	who	has	not	received	a	prior	Direct	Subsidized	Loan,
Direct	Unsubsidized	Loan,	Subsidized	Federal	Stafford	Loan,	or	Unsubsidized	Federal	Stafford	Loan,	provide	the
information	specified	above	under	<Required	Entrance	Counseling	Content	for	Direct	Subsidized	Loan	and	Direct
Unsubsidized	Loan	Borrowers.=
Required	Content	for	Direct	Subsidized	Loan	and	Dir ect	Unsubsidized	Loan	Entrance
Counseling
34	CFR	685.304(a)(6)
HEA	Sec.	485(l)(2)(I)
Required	Content	for	Student	Direct	PLUS	Loan	Entra nce	Counseling
34	CFR	685.304(a)(7)