Applying for a Loan
Direct Student Loans
The Student Federal Direct loan program provides long-term, low-interest loans to students demonstrating a need for financial assistance. Loan funds are sent directly to Lone Star College from the Department of Education and are applied to the studentís account. Student loans are borrowed money that must be repaid.Students applying for a Direct Student loan must complete the Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.ed.gov/ and be enrolled in at least 6 credit hours or more.
Student will receive notification of financial aid award through their Lone Star College email address which will require them to complete the following steps.
- Review award letter and accept loan amounts online in studentís iStar account.
(Student can also reduce or decline loan amount on this page.)
- New and first time borrowers are required to complete the Federal Direct Loan Entrance Counseling at https://studentloans.gov/
- New and first time borrowers are required to Esign a Federal Direct Loan Master Promissory Note at https://studentloans.gov/
- To complete an MPN online, you will be required to use your Department of Education issued PIN. If you do not have a PIN, you may request one from the official PIN site http://www.pin.ed.gov/.
- You will also need two references that live at different addresses.
- For your records, be sure to print the Master Promissory Note (MPN).
If you do not "accept" you loan(s), your classes will not be held.
Annual Loan Amounts
|Dependent student1||Independent student2|
|1st-year undergrad||$5,500 ($3,500 subsidized:$2,000 unsub)||$9,500 ($3,500 subsidized:$6,000 unsub)|
|2nd-year undergrad||$6,500 ($4,500 subsidized:$2,000 unsub)||$10,500 ($4,500 subsidized:$6,000 unsub)|
Direct Stafford Subsidized loans is 3.86%.
Direct Stafford Unsubsidized loans is 3.86%.
Direct Loan Program: School Responsibilities
A schoolís responsibilities in the Direct Loan Program begin with meeting and maintaining loan program participation requirements.
Operational requirements can include:
- confirming borrower eligibility;
- originating Direct Loans;
- counseling students;
- requesting Direct Loan cash;
- disbursing Direct Loan cash;
- reconciling school-based Direct Loan records with records in
EDís Direct Loan database;
- carrying out administrative and fiscal management functions;
- closing out each award year