Office of Student Aid : Loans : Federal Direct Stafford Loan : First-Time Borrowers

Step 1: Complete the 2007-08 Free Application for Federal Student Aid (FAFSA on the Web): Note that on the FAFSA you will be asked to select what types of student aid interest you. Be sure to choose Loans from that question’s drop-down menu if you want to receive a Federal Direct Stafford Loan. Penn State will consider the amount of your Federal Direct Stafford Loan based on your eligibility.

Step 2: Aid Notification: After Penn State has received your 2007-08 FAFSA and acceptance fees for summer 2008 admission, the Office of Student Aid will determine your eligibility for a summer Federal Direct Stafford Loan and will notify you if you are eligible. First-year undergraduate students can borrow up to $1,750 for their first summer of enrollment. The summer loan will not affect loan eligibility for the fall 2008 or spring 2009 semesters.

Step 3: E-sign your Federal Direct Stafford Loan Master Promissory Note (MPN): Access the U.S. Department of Education Web site and select Complete New MPN for Student Loans and then select Subsidized/Unsubsidized. You will need the following information in order to e-sign your MPN:

• Your driver's license number
• Names, addresses, telephone numbers, and e-mail addresses (if available) of two adults at two different U.S. addresses, the first of which should be a parent or legal guardian (if living).
• Your Federal Student Aid PIN (Personal Identification Number).
• If you experience technical problems signing your MPN, please contact the U.S. Department of Education at 1-800-557-7394.

Step 4: Complete Loan Entrance Counseling: Access the one-time interactive Stafford Loan Entrance Counseling on eLion, select Loan Entrance Counseling from the Students menu once you have gained computer access at FTCAP or when you arrive on campus. Loan entrance counseling ensures that you fully understand your rights and responsibilities as a student loan borrower.

Step 5: Loan Funds disburse to Penn State: Once you have signed your Federal Direct Stafford MPN, completed loan entrance counseling, completed registration via your tuition bill and all of your summer classes have started, your loan funds will be disbursed into your student bursar account.