Accepting loans for the first time can seem overwhelming. Use this page as a checklist to ensure you’ve done everything needed to receive your funds.
As a first-time borrower, there are a few important steps you must complete to accept your Federal Direct Student loans.
STEP 1: Accept your aid
First, you must accept your Federal Direct Student Loans in your myPurdue portal. For more information on using myPurdue, view our step-by-step guide. Once you have finished this task you will have to visit studentaid.gov to complete the Master Promissory Note and Entrance Counseling.
STEP 2: Complete the Master Promissory Note (MPN)
Visit the Master Promissory Note page on the federal student aid website.
This site will tell you more about the Master Promissory note, a legal document in which you promise to repay the loan and any accrued interest and fees. It also explains the terms and conditions of your loan, so read carefully. The MPN is good for other Direct Student Loans over a period of 10 years.
Once you are ready to complete the MPN you will have to log in, which is done using your Federal Student Aid (FSA) ID. The FSA ID is what you created to electronically sign and submit your FAFSA. You will provide demographic information similar to what you shared on your FAFSA as well as information about the school you’ll attend. Finally, you’ll be asked to provide references for two people who do not live with you. This information may be used to help provide contact information if the lender cannot reach you.
TIP: There is a demo on how to complete the MPN (below the login), showing you what the form entails if you’d like to view the form before you begin.
STEP 3: Complete Entrance Counseling
Visit the Entrance counseling page on the federal student aid site.
Entrance counseling is required for any student who has not previously borrowed a Direct Federal loan and ensures that you understand the terms and conditions of your loan as well as your rights and responsibilities.
Like the MPN, you will have to log in using your Federal Student Aid (FSA) ID. During entrance counseling, you’ll learn more about important topics that include:
- Review of the cost of attendance and managing educational costs
- Basics of types of financial aid along with details of how loans work
- Consequences of not repaying your student loans
TIP: Just like the MPN page you can view a demo, which provides an overview of what you will learn and do in this process.
You’ve completed all three steps – now what?
You may be wondering when the loan funds will be available to you. Once you accept the loan on your myPurdue portal the loan will be applied to your bill within 24 hours. You must have been assessed a bill before the funds can be utilized. Billing for Fall term starts in mid-July and billing for spring begins in mid-November.
Once your bill for fees and on-campus housing is paid, you’ll need to confirm your enrollment in your myPurdue portal and set up direct deposit.
If you have financial aid in an amount greater than your bill for fees and on-campus housing, you can expect a refund for the difference. The Office of the Bursar will begin distributing those refunds 10 days prior to the first day of classes. All of the steps mentioned above for completing your Direct Federal Student Loan and confirming enrollment must be fulfilled for refunding to occur.