Federal Direct Loans
Federal Direct Loans
What are Federal Direct Loans?
River Parishes Community College participates in the William D. Ford Federal Direct Loan Program. Students borrow directly from the federal government. No separate application from a bank or other lender is needed to receive Direct Stafford Loans.
Applying for a Federal Direct Loan
When you complete the Free Application for Federal Student Aid or the Renewal Free Application for Federal Student Aid, you are applying for all of the aid programs for which you may be eligible, including direct loans.
If a William D. Ford Federal Direct Stafford Loan (subsidized or unsubsidized) has been offered to you as part of your aid package it will post on the Award Offer section of LoLA. You can accept, decline, or change your award up to the amount offered.
Once you are awarded a Federal Direct Student Loan, you must fulfill certain conditions before loan funds can be credited to your account.
- Completion of a Loan Entrance Interview
An Entrance Interview is actually a counseling session which is designed to help you better understand your obligation as a borrower and provides other useful information on the loan process. Entrance Interviews are required for all of first time, first-year borrowers. Loan borrowers must complete an Entrance Interview at www.studentloans.gov.
- Signing the Master Promissory Note
All Direct Stafford Loan borrowers must complete a Master Promissory Note (MPN) at www.studentloans.gov using your FSA ID. The same FSA ID is used to complete your online FAFSA is used to sign your MPN.
To obtain a FSA ID, visit https://fsaid.ed.gov/npas/index.htm.
Once a student completes the process for a Federal Direct Loan and funds are disbursed, the student’s information regarding the loan is reported to the National Student Loan Database System (NSLDS) by the federal processor. The information on NSLDS is accessible by any institutional or governmental entity that has legal access to NSLDS. The information is updated as needed with regards to enrollment status, graduation dates, and additional loans taken.
Students may also get access to NSLDS by accessing the website at https://www.nslds.ed.gov/nslds/nslds_SA and setting up an account.
Right to Cancel
Federal regulations allow student loan borrowers up to 14 days after disbursement of funds to cancel or reduce the loans. The following describes the process to request a cancellation or reduction of student loans.
To request changes to your loan(s), please complete a Loan Change Request Form and return it to the Office of Financial Aid.
If the cancellation results in a balance due on your student account, payment will be required immediately.
If you repay your loans directly to the Direct Loan Servicer, your loan account will be credited as a repayment on the loan rather than a reduction/cancel. This means that your loan fees will not be reduced, nor will it renew you academic year eligibility. If you had already borrowed your academic year limit, your will not be able to re-borrow this amount later.
When a student loan borrower ceases to be enrolled at least 6hours (1/2 time) at RPCC, whether due to graduation or withdrawal, the student is required to complete Exit Counseling. This is done online at www.studentloans.gov. The school receives notification from the federal processor when this is done.
**STUDENTS MUST BE ENROLLED IN AT LEAST 6 CREDIT HOURS IN ORDER TO RECEIVE LOANS**