How to Apply for Student Loans

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Federal Direct Student Loans

If you apply for financial aid, you may be eligible to receive loans to fund your education. The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. You will find information and a glossary of terms at studentaid.gov.

Direct Subsidized Loan
Loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Direct Unsubsidized Loan
Loans made to eligible undergraduate, graduate and professional students, but eligibility is not based on financial need.

If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

Direct PLUS Loan
Loans made to parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required.

If you are a parent of a dependent undergraduate student, you can receive a Direct PLUS Loan for the remainder of your student’s college costs not covered by other financial aid.

Please submit loan requests through the Financial Aid section of the self service portal. Students requesting a loan are also required to complete entrance counseling and a Master promissory note. Both can be found at https://studentaid.gov/. Click on the "In School" tab and scroll down to Popular Topics. Students will need their Federal Student Aid (FAFSA) username to login to their accounts.

To determine how much you can borrow please click here.

Entrance Counseling

The Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.

If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.

To learn more, click here.

Master Promissory Note (MPN)

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).

To learn more, click here.

Student Loan Acknowledgement

The Annual Student Loan Acknowledgement is an online session that allows students and parents to see how much they have borrowed, preview what their monthly payments might be, and explain concepts such as capitalization and the difference between federal and private loans.

Starting in the 2020-2021 school year, borrowers of Federal Subsidized, Unsubsidized and PLUS loans will be required to complete the Informed Borrowing Confirmation process once each award year before receiving disbursement of their loan.

After April 15, 2020, log into your MyStudentAid account using your FSA ID and password to complete the Annual Student Loan Acknowledgement requirement.

Parent PLUS loan borrowers must also complete this requirement.

Exit Counseling

If you drop below half-time enrollment, leave school or graduate, The U.S. Department of Education also requires you to complete Exit Loan Counseling.

To complete exit counseling:

You must have a verified FSA ID (Username & Password) instead of a PIN to log in to StudentLoans.gov.
Select Complete Exit Counseling and allow 20 to 30 minutes to learn about your repayment responsibilities and options.
After you complete the session, print the Confirmation Page and keep one for your records.

Repayment Information

Repayment begins six months after you graduate or drop below half-time enrollment (six credit hours). Please keep in mind that if you withdraw you may owe part of your loan funds back immediately.

Under certain circumstances you can receive a deferment or forbearance. This will allow you to temporarily postpone making loan repayments. You can find out more about deferments and forbearances through the U.S. Department of Education’s website.

Students are able to track the amount they owe, their student loan servicers, and interest rates by logging into the U.S. Department of Education's website. You will login with the same Username and Password that was used to complete the Free Application for Student Aid (FAFSA) application.

Federal Direct Student Loans

New Jersey Class Loan Repayment