Federal Direct Student Loans

What are federal loans?

Federal Direct Student Loans are through the Department of Education, have a low, fixed-interest rate, and multiple repayment options.

• Repayment is not required until you graduate or drop below half-time enrollment.
• Federal loans are generally recommended before taking any private loan funding as private loans can have higher interest rates, begin accruing interest immediately, and have less repayment options.  

How much can I get?

The total amount offered in federal loans each year is based on the student's grade level, enrollment, and aggregate loan limits.

• Please refer to sections titled: Dependent / Independent Student Yearly Loan Limits, and Aggregate Lifetime Loan Limits for more information.

What type of Loan will i be offered?

There are two types of loans, Subsidized (interest free while in school) and Unsubsidized (accrues interest while in school). The type of loans offered are based on the students financial need as determined by:

• Information provided on the FAFSA and the Student Aid Index (SAI) calculated
• Cost of Attendance (COA)
• Other gift aid received

Not all students will be offered both types of loans, but the amount the student is offered will be the same based grade level.

Subsidized Loan:

• Interest-free while enrolled in at least half-time
• 6.53% fixed interest rate for loans disbursed between July 1, 2024 - June 30, 2025.
  • Interest rates are subject to change July 1 each year for new loans borrowed.
• Only available to Undergraduate Students with financial need as determined by the FAFSA

Unsubsidized Loan:

• Begins accruing interest on the portion that has paid, as of the date the funds pay to the school
  • Undergraduate Students:
    • 6.53% fixed interest rate for loans disbursed July 1, 2024 - June 30, 2025 
  • Graduate Students:
    • 8.08% fixed interest rate for loans disbursed July 1, 2024 - June 30, 2025
• Note: interest rates are subject to change July 1 each year for new loans borrowed.

Additional Quick Facts:

Fees:

• Both loan types charge an Origination Fee
• 1.057% for loans disbursed from October 1, 2022 - September 30, 2025.
• Origination fees are subject to change October 1 each year.

Repayment:

• Repayment is deferred while the student is enrolled at least half-time as defined by their program (Undergraduate & Post-baccalaureate Certification Programs: 6 credits ; Graduate & Doctoral Programs: 3 credits) per semester.
• Repayment begins 6 months after graduation or from the date the student ceases to be enrolled in at least half-time.
  • If you choose not to pay the interest while you are in school and during grace periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).Students can choose to pay interest on the Unsubsidized Loan while in school

Federal Direct Student Loan Fact Sheet

1.  Complete the FAFSA for the applicable academic year that you plan to attend.

2.  Comply with any requests from the Office of Financial Aid for additional documentation. If you are a confirmed MU student, any outstanding requirements you may have will be listed under the Financial Aid Requirements widget found in the Finances tab of your myVILLE Portal (Requires login). 

3.  Once all requirements are completed, a financial aid award package will be completed for you and will be available to view in your MAX account under the My Awards tab. All eligible students will be "Offered" a Federal Direct Loan.  

• The student will need to log into their MAX account to accept (or decline/reduce) the offered loan. For instructions on navigating your MAX Account, please click here.
• Once the loan(s) have been accepted (or declined), if you wish to make any further changes you must complete a Loan Request Change Form or contact the Office of Financial Aid at 717-871-5100. Please note that only the student may make changes to their Federal Direct Loans.

First-time borrowers must also complete Federal Direct Loan Entrance Counseling and a Master Promissory Note (MPN) online through studentaid.gov. These requirements must be completed by the student, NOT the parent(s).  

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ENTRANCE COUNSELING:

The Federal Government requires that all first-time Federal Direct Loan borrowers complete an entrance counseling session before they receive any loan proceeds. Entrance Counseling educates the student about Direct Loans and their terms, as well as the student’s rights and responsibilities of borrowing them. The Entrance Counseling must be completed by the student, NOT the parent(s). For more information on how to complete Entrance Counseling, please click here.

LOAN AGREEMENT:

The Federal Direct Student Loan is a guaranteed student loan (in the student's name).  In order to obtain the Federal Direct Loan, all first-time borrowers must complete the Federal Direct Loan Agreement (Master Promissory Note/MPN).  This note is valid for a period of 10 years and must be completed by the student. For more information on how to complete Entrance Counseling, please click here.

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To log into your account, you will need your (the student):

FSA User ID and Password:

NOTE: This is the same user ID and password used to complete the FAFSA application

• To create an FSA User ID click here.
• If you have forgotten your username or password, click here.

It is Federal Regulation that these steps must be done so that the student understands the terms of their loan and repayment. Until both the Entrance Counseling and Loan Agreement are completed, Direct Loan funds will not be credited towards the student's bill and will not disburse (pay) to the account.

The amount a student can borrow in federal loans each academic year is based on their grade level at the time the loan is processed. A student's grade level is based on the total number of credits earned. Please note that the number of credits a student is enrolled, their housing plans and other financial aid received may cause the loan amounts listed below to be less.

The following chart refers to yearly limits for dependent undergraduate or dependent post-baccalaureate certification students. Students may be eligible for an additional unsubsidized loan if the parent is denied a Parent PLUS Loan.

Students may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid (717-871-5100 | fa.mail@millersville.edu) to cancel or reduce the loan.

• Loan funds are disbursed in at least 2 installments (fall/spring).
• A student can receive a subsidized and unsubsidized loan for the same period, and some students will only be offered an unsubsidized loan.
• If students are graduating in the summer or fall semesters, the loans will need to be prorated based on their enrollment for that semester. 
• The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible.
  • The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the U.S. Department of Education.

The amount a student can borrow in federal loans each academic year is based on their grade level at the time the loan is processed. A student's grade level is based on the total number of credits earned. Please note that the number of credits a student is enrolled, their housing plans and other financial aid received may cause the loan amounts listed below to be less.

The following chart refers to yearly limits for independent undergraduate, independent post-baccalaureate certification students, graduate/doctoral students (and sometimes dependent students - only if their parents have applied for and been denied a Parent PLUS Loan; the student now qualifies to borrow an additional amount of the unsubsidized loan). 

The federal Aggregate Lifetime Loan Limit puts a cap on the total amount of subsidized and/or unsubsidized loans that you may borrow for undergraduate and graduate study.

• If the total loan amount you receive throughout your education reaches the aggregate loan limit, you're not eligible to receive additional loans.
• However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

Students cannot exceed the Aggregate Lifetime Loan Limits for the program for which they are enrolled. As students get close to their aggregate loan amounts, the school is notified by the National Student Loan Data System (NSLDS) and is required to complete a Loan Limit Review (LLR) of all loans borrowed.

• Loan Limit Reviews can take 1-4 weeks for processing depending on the time of year and when your FAFSA was received.
• Please allow for processing time; if additional information is needed from you, the information will be requested on your myVILLE Student Portal > Finances > Financial Aid Requirements > Financial Aid Status > Select Aid Year.

Are you confused about how to keep track of your federal loans?  

Log into your account at studentaid.gov to view detailed information about your federal loans, repayment options, and current loan servicer(s). Please note that this is only for federal loans (Stafford, Direct, Perkins, Grad PLUS) and does not include any private/alternative loans.

manage my student loans

In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Student Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.