Frequently Asked Questions about the

Federal Direct Lending Program

1.      Why is MTSU changing to the Federal Direct Lending Program?

Many banks have dropped out of the Student Loan Program.  President Obama has suggested that all schools move to Direct Lending within 16 months.  Direct loans have better terms.  To read more about MTSU changing to the Federal Direct Loan Program, click here

2.      Do I have to complete another Master Promissory Note, or MPN, with the Federal government even if I have signed one before with a bank or other lender?

Yes, you must sign a new Direct MPN because the Federal Government will now be your new lender.  This should be the last MPN you have to sign as long as you attend MTSU.

3.      How and when do I complete A Direct Loan MPN?

If you plan to receive a Direct loan, either fall 2009 or spring 2010, you need to complete a Direct Loan MPN as soon as possible. By completing the MPN now you will avoid possible delays in receiving your student loan funds.  You can complete the MPN at: https://dlenote.ed.gov/empn/StudentLoanSelector.jsp

4.      If I have already completed a Direct Loan Master Promissory Note for another school, do I have to complete one for MTSU?

If you previously received Direct loans and if you are transferring from Motlow, TN Tech, or U of Memphis, and you have been enrolled at least half time without a break for more than one semester, then you should not have to complete a new MPN.  If you have had a break in enrollment, then please contact our office to see if you have to do another MPN.

5.       When I change from bank student loans to the Federal Direct Loan Program, will my earlier loans go into repayment?

No, as long as you remain enrolled at least half time.

6.      Can I consolidate my Direct Loans and my bank loans?

Previous loans will not go into repayment as long as you remain enrolled at least half time without a six month break.  When you do start repayment you have a choice to either make payments to your previous lenders and the Federal Direct Loan Program or to consolidate your loans with the lender or the Federal government. Currently, most lenders have stopped consolidating loans, so most consolidations are with the government.  The benefits of consolidation depend on interest rates at the time of consolidation.  Federal consolidation information: http://loanconsilidation.ed.gov

7.      How do I contact the Direct Loan Program?

Telephone: 1-800-848-0979

Website: https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp

Financial Aid News


Applying for Summer Aid 2009

Tutorial for completing the 2009-2010 FAFSA

MTSU is changing to the Federal Direct Student Loan program

Looking for the Scholarship Departments List?
Click Here

Please  Note:
Any information on this site concerning financial aid assistance at MTSU may be subject to change or corrected as necessary without prior notice.