Step 1: Complete your entrance counseling online

First time borrowers must complete entrance counseling prior to applying for a Federal Direct Loan. Parents should not complete the session on behalf of their students, as this is a federal requirement designed to benefit each student’s understanding of his/her rights and responsibilities.

1. Visit studentaid.gov
2. Click the “Manage Loans” tab.
3. Click on “Complete Entrance Counseling” Under the “I’m Starting School or In School” section.
4. Log in with your FSA ID and Password
5. Your results will be sent to Susquehanna electronically.

Note: If you previously borrowed under our Federal Stafford Loan process, you do not need to complete entrance counseling again. However, if you would like a refresher, all students can complete the above process for their Federal Direct Loans.

Step 2: Complete your Master Promissory Note (MPN) online

Borrowers must complete an MPN at studentaid.gov

1. Under the “Complete Aid Process” tab select “Complete Master Promissory Note”
2. Select “Log In To Start” in the “I’m an Undergraduate Student” section
3. Once completed, Susquehanna University will be automatically notified.

These are awarded based upon demonstrated financial need. Interest is not charged while you are enrolled at least half-time or otherwise qualify for a deferment. The federal government “subsidizes” (or pays) the interest during these times. Repayment begins six months after you graduate, leave college entirely or are no longer enrolled at least half-time. The interest rate on this type of loan is 5.50% for loans first disbursed on or after July 1, 2023 and before July 1, 2024, i.e., for the 2023-2024 academic year.

These are available to all students because they are not based on financial need. The interest rate is also 5.50% for loans first disbursed on or after July 1, 2023 and before July 1, 2024, i.e., for the 2023-2024 academic year. The interest accrues from the time the loan is disbursed until it is repaid in full. There is no payment due until six months after you are no longer enrolled at least half-time. However, you are strongly encouraged to make interest payments during your time in college or else accrued interest will capitalize on the loan.

You may borrow annually through the Federal Direct Loan program.

If you borrow the full Direct Loan amount available in each academic year, your cumulative borrowing will total $27,000, as outlined below:

• First year: $5,500 (up to $3,500 may be Subsidized)
• Sophomore: $6,500 (up to $4,500 may be Subsidized)
• Junior: $7,500 (up to $5,500 may be Subsidized)
• Senior: $7,500 (up to $7,500 may be Subsidized)

The Federal Direct Parent Loan for Undergraduate Students (PLUS Loan) is a popular option for families who wish to use a low-interest loan to cover college expenses.

It can be used to supplement your student’s aid awards, or it can be used to cover the full cost of education.

• Parents must be creditworthy, but there are no income requirements.
• No collateral or cosigners are required.
• Completion of the FAFSA is required before applying.
• Loans are payable 60 days after the final disbursement of the loan and payable over 10 years.
• Deferment of repayment is available upon request as long as the student is enrolled at least half-time.
• The PLUS loan interest rate is fixed at 8.05% and has a 4.228% loan origination fee.
• Estimate your PLUS Loan costs with the Federal Loan Simulator.

Federal Parent PLUS Loan Application Instructions

A parent can apply for a Federal Direct Parent PLUS Loan by visiting studentaid.gov.

• On the main, select “Apply For Aid”
• Under “Applying for a PLUS Loan” select “Apply for a Parent PLUS Loan”
• Log in using your FSA ID and Password to begin the Parent PLUS Loan application.
• The PLUS process will ask for information about the parent, allow a parent to indicate a loan amount and initiate a credit check.
• The individual parent applying for the loan will also complete a Master Promissory Note (MPN) online at studentaid.gov. The MPN can be
• completed as soon as the credit is approved.
• The request is not complete until Susquehanna has both the initial application and the Master Promissory Note on file. Unlike the Federal Direct
• Subsidized and Unsubsidized Student Loans, the Direct Parent PLUS loan request and credit check must be completed annually for each loan.

After you have completed the application for the Parent PLUS loan and you have been denied, you will be presented with the following four options:

•  I do not wish to pursue a PLUS loan at this time
  • If you choose this option, the PLUS loan will not be processed and the student will be awarded additional unsubsidized loan funds.
  • If you do NOT wish to receive the additional unsubsidized loan, please contact Student Financial Services
• I will obtain an endorser *
  • Choose this option if you would like to add a co-signer to your Parent PLUS application. Your application will be processed after we received notification of the endorser approval.
    
    
• I want to appeal the credit decision *
  • Choose this option if you believe the credit check is inaccurate or you can provide updated information about extenuating circumstances.
    
    
• Undecided **
  • If you choose this option, the student will be awarded additional unsubsidized loan funds.
    • Up to an additional $4000 per academic year for first-year & second-year students.
    • Up to an additional $5000 per academic year for third-year & fourth-year students.
  • If you do NOT wish to receive the additional unsubsidized loan, please contact Student Financial Services

*If you are obtaining an endorser or appealing your credit decision, your PLUS Loan will be treated as a denial until the school receives certification that your endorsed/appealed loan as been approved. This means that the student may be awarded additional unsubsidized loan funds until the school is notified of your updated credit decision. Once the school is notified, any additional unsubsidized loan awarded due to the original denial will be returned and the PLUS Loan will be awarded in its place.

**If at any time you want to change the option that you chose, contact the Department of Education Loan Support Center at 800-557-7394.

The United States Congress recently passed a law preventing further extensions of the federal student loan repayment pause associated with the federal COVID-19 emergency. Federal student loans will begin accruing interest on September 1, 2023, and payments will be due starting in October 2023. The federal government will notify federal student borrowers prior to the restart of payments but in the interim here is some helpful information to help you prepare for the resumption of payments.

1. Update your contact information in your profile on your loan servicer’s website and in your StudentAid.gov profile.

• Your “loan servicer” is the company that collects payments, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a federal student loan. If you’re unsure of who your federal student loan servicer is, you can look it up in “My Federal Student Aid.”
• Here is a list of the current federal student aid loan servicers:

2. Contact your loan servicer (by email or phone) to obtain an estimate of your payment amount and due date.

3. Review your auto-debit enrollment with your loan servicer or sign up for the first time. You must directly contact your loan servicer’s website to do this.

4. Check out the Office of Federal Student Aid’s Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate.

• Your situation may have changed during the COVID-19 emergency. Now is a great time to think about whether you’re on the best repayment plan for you.

5. Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.

6. BEWARE of scams associated with the restart of federal student loan repayment. Don’t accept unexpected offers of financial assistance or help (such as “pandemic grants” or “Biden Loan Forgiveness”. Click here for more information on how to avoid scams.

7. As a last resort, contact your loan servicer to ask for short-term relief via a loan deferment or forbearance. If you can’t find a repayment plan that works for you right now, you can request to temporarily pause or lower your payments through short-term relief (deferment or forbearance).

• Remember, a normal deferment or forbearance is different from the COVID-19 emergency payment pause. Interest can still accrue (add up) during deferment or forbearance. Deferment and forbearance also affect loan forgiveness options, such as Public Service Loan Forgiveness or IDR plan forgiveness.

8. Understand what happens if you miss a federal student loan repayment.

• If you miss a payment, your loan becomes delinquent. If your loan is delinquent for 90 days or more, your loan servicer will report the delinquency to the three major national credit bureaus. Delinquency will affect your credit score, making it harder to get credit. After 270 days, your delinquent loan goes into default.
• When you default on a loan, here’s what happens:
  • You can lose your access to more student aid.
  • The default status will damage your credit score.
  • The government can take your tax refund, part of your Social Security benefits, or up to 15% of your paycheck to pay off your defaulted loan.

• Directions on obtaining a loan
• Loan repayment simulator