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 student’s 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.

1. Review award letter and accept loan amounts online in student’s iStar account.
   (Student can also reduce or decline loan amount on this page.)
2. New and first time borrowers are required to complete the Federal Direct Loan Entrance Counseling.
3. New and first time borrowers are required to Esign a Federal Direct Loan Master Promissory Note.
   1. To complete an MPN online, you will be required to use your Verified FSA ID.
   2. School Name
   3. Permanent and Mailing address, telephone, and email address.
   4. You will also need two references that live at different addresses.
   5. 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

Interest Rates

The interest rate on Federal Direct Loans varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan.  Interest rates on federal student loans are set by federal law, not the U.S. Department of Education.  

The interest rate for Direct Subsidized and Unsubsidized Loans for undergraduate students disbursed after July 1, 2020 is 2.75%
The interest rate for Direct PLUS Loans disbursed after July 1, 2020 is 5.30%

For current and past interest rates, click here.