Direct Student Loans

The Federal Direct loan program provides long-term, low-interest loans to students demonstrating a need for financial assistance. These loans are disbursed directly to Lone Star College from the U.S. Department of Education and applied to your student account.

Note: All federal student loans must be repaid.

Students applying for a Direct Student loan must complete the Free Application for Federal Student Aid (FAFSA) at Studentaid.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 myLoneStar 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

Federal student loan interest rates are set by federal law and vary by loan type and disbursement date. They are not determined by the U.S Department of Education.

For loans first disbursed between July 1, 2025 and June 30, 2026:

• Direct Subsidized & Unsubsidized Loans (Undergraduate students) Interest Rate: 6.39%

• Direct PLUS Loans (Parents and Graduate students) Interest Rate: 8.94%

Interest begins accruing on Unsubsidized and PLUS loans as soon as the loan is disbursed.

For current and past interest rates, click here.