Federal Direct Loan

Wallace State Community College participates in the William D. Ford Federal Direct Loan Program.  The Direct Loan Program is where the U.S. Department of Education lends the money directly to students and parents through the student’s school.  There are two types of Direct Loans: Direct Subsidized Loans and Direct Unsubsidized Loans and Parent Loans for Dependent Undergraduate students are called Direct PLUS Loans.

14-15 Direct Loans Information Form- Subsidized, Unsubsidized, & PLUS
View Direct Loan Steps
Code of Conduct 
Student Loan Payment Calculator - NY Times

A Beginner's Guide to Repaying Student Loans - NY Times

First-Time Direct Loan Borrowers Must Complete a Direct Loan MPN

  • If you have not previously received a Direct Loan, you must complete a Direct Loan Master Promissory Note (MPN). Although you may have previously signed an MPN to receive FFEL Program loans, a FFEL MPN cannot be used to make Direct Loans.
  • The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department.  It also explains the terms and conditions of your loans.  A Direct Loan MPN can be used to make loans for up to ten (10) years.  You will need to complete a Direct Loan MPN electronically via the StudentLoans.gov Web site at https://studentloans.gov.
  • To complete a Direct Loan MPN electronically, you must have a Federal Student Aid PIN.  The Federal Student Aid PIN is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA).  To apply for a PIN if you do not already have one, or for customer service regarding a previously assigned PIN, visit www.PIN.ed.gov.

Student Loan Borrowers Must Complete Direct Loan Entrance Counseling

  • If you are an undergraduate or graduate/professional student you must complete Direct Loan Entrance Counseling before you can receive a Direct Loan.
  • You may complete Direct Loan Entrance Counseling electronically via the StudentLoans.gov Web site at https://studentloans.gov.  A Federal Student Aid PIN is required to complete online Direct Loan Entrance Counseling.
  • For more information on how to complete Loan Entrance Counseling please visit the Loan Entrance Counseling Tutorial

Consolidating FFEL Program Loans into the Direct Loan Program

  • If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier.  If you consolidate, you will have just a single monthly payment.  Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan.
  • To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit www.loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).

Wallace State Community College looks forward to participating in the Direct Loan Program and offering the benefits of Direct Loans to our students.  For additional information about Direct Loans, visit www.direct.ed.gov/student.html or the Financial Aid office for more information.