Educational Loans

Federal Direct Loan Program

Important: All new students borrowing in the Direct Loan program must sign a Master Promissory Note (MPN).

You can do this in late June or early July. To complete your MPN online:

1. Go to www.studentloans.gov.
2. Click the green "Sign In" button in the top left-hand corner.
3. Sign in using your Social Security Number, last name, date of birth, and federal PIN number (this is the PIN you used to sign your FAFSA).
4. Select the MPN to complete (please note that if you are borrowing both types of loans below, you will need to complete both MPNs).
   1. "Subsidized/Unsubsidized" for Unsubsidized and Subsidized Stafford Loans from the list in the middle of the page.
   2. "Graduate PLUS" for Graduate Plus loans from the list in the middle of the page.
5. Follow ALL steps to complete MPN
   Note: The MPN is not considered "completed" until it is electronically signed and submitted electronically to www.studentloans.gov.

Gonzaga will receive confirmation of your completed MPN two to three days after it is submitted. You can view your completed MPNs on the www.studentloans.gov website by clicking "Completed MPNs" in the "My Loan Documents" section.

Newly admitted law students will complete the mandatory entrance counseling during orientation in the fall of 2012.

Unsubsidized Federal Direct Loans

Eligibility for the unsubsidized Direct is not contingent on financial need; thus, the borrower is responsible for interest that accrues on the loan while he or she is in school. The interest rate on both types of Direct Loans is a fixed 6.8% interest rate, as of July 1, 2008. Direct Loan limits are a maximum of $20,500 combined for any 12-month period.

Fees: Federal Direct Loans may deduct up to 1.5% in fees before disbursement to the university.

Repayment: Federal Direct Loan repayment begins six (6) months after the student graduates, or is no longer enrolled at least half-time.

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Federal Direct PLUS Loan

The Federal Direct PLUS Loan allows graduate/professional students to borrow long-term, fixed interest rate loans to help meet educational expenses. Annual maximum loan amounts are determined by the student's cost of attendance, less any other financial aid. The student borrower must show an absence of negative credit history in order to qualify for the direct PLUS LOan. The direct PLUS Loan is a fixed 7.9% interest-rate loan. Interest accrual begins when the loan is disburse.

The is a federal loan that may be consolidated with a student's other federal student loans after graduation.

Fees: Up to 4% of the total loan amount may be deducted by the Federal Direct Lending Program before disbursement.

Repayment: Direct PLUS Loan repayment begins 60 days after the loan is fully disbursed. An in-school deferment is available for students enrolled at least half-time. The Direct PLUS Loan does not offer a grace period after the borrower ceases half-time enrollment. An endorser option may be available if you have questionable credit.

Alaska Supplemental Education Loan (ASEL)

From the AlaskAdvantage program, the Alaska Supplemental Educational Loan (ASEL) is a state-sponsored loan program available only to Alaska residents. It requires a separate application that may be completed online at www.state.ak.us/acpe. If you do not wish to complete your application online, contact the Alaska Student Loan Commission at (907) 465-2962 to request a paper application.

Direct-to-Consumer Loans

Lenders may offer a type of private educational loan that does not require school certification. Borrowing this type of private educational loan may have a serious negative impact on your existing financial aid package and could result in a reduction of your federal loan(s) and/or work study. Please contact the Financial Aid Office before borrowing one of these loans.

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