DIRECT LENDING FAQS - 2

Will I need a lender for my federal loans?

No, all students at Georgia Tech will have the Federal Direct Loan Program as their lender.

What do I need to do to receive my federal loans?

Please complete the loan steps.

  1. Submit the GT Application and FAFSA for the academic year.
  2. Complete entrance loan counseling.
  3. Sign your electronic master promissory note (MPN). Once the Office of Scholarships and Financial Aid notifies you that this form is available. Direct Loan forms only need to be completed one-time or until it expires, usually 10 years.

If I have prior student loans, will I need to do entrance counseling again?

Yes, all Georgia Tech students will need to complete entrance loan counseling to receive loans through the Direct Loan Program at Georgia Tech.

If I have prior educational loans, will I need to sign a new "Master Promissory Note" (MPN)?

Yes, all borrowers will need to sign a new MPN to receive loans through the Direct Loan Program at Georgia Tech.

If I have prior loans, will my Direct Lending Stafford and PLUS loans have different interest rates from my existing loans?

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The interest rates for federal student loans are determined by federal law. Congress usually updates federal student loan interest rates at the beginning of the Financial Aid year (July 1). If there are future changes to federal law that affect federal student loan interest rates, we will update our page to reflect those changes.

What are the loans fees in the Direct Lending?

Stafford: The effective up front fee will be 1.073 percent of the loan for loans disbursed on or after 10/1/14 and before 10/1/2015. For example, the proceeds of a $10,000 loan will be reduced by $107.30.

PLUS: The effective up front fee will be 4.292 percent of the loan for loans disbursed on or after 10/1/14 and before 10/1/2015. For example, the proceeds of a $10,000 loan will be reduced by $429.20.

Will borrowers with both Direct Loans and other Federal Loans have multiple loan repayment servicers?

The Loan servicers may be the same for all your loans, or they may be different.  When you enter repayment, you can consolidate your loans and have just one servicer.  Learn more about Direct Loan consolidation.

What kinds of repayment options are available with Direct Lending?

Repayment options are explained in full  at U.S. Department of Education's Direct Loan Program website.

How do I request an In-School Deferment to be sent to my loan servicer for my Federal Student Loans &/or Parent PLUS Loans?

Students who hold student loans are in deferred status on repayment as long as they remain enrolled full-time. For students holding Federal student loans, enrollment status is automatically verified each term through the National Student Clearinghouse. Although students receive deferment forms in the mail, they do not have to bring them to us or take any action because Georgia Tech is a member of the Student Loan Clearinghouse and the enrollment verification is an automatic process that occurs each term by the Registrar's Office.

For students whose parents hold PLUS loans, or other loans on behalf of the student, enrollment is not automatically verified through the Clearinghouse. These loans refer to the parents, not the students, so the Clearinghouse is not an option. Learn more about how you can obtain Enrollment Verification for the student.Please note that enrollment verification information cannot be provided until the Friday following the last day of phase II registration for the term. (Usually, this is the Friday of the second week of class for the term).