Beginning with the 2010-2011 academic year, Mid-Continent University will be processing ALL Federal Stafford, Parent Plus, and Graduate Plus loans through the Direct Lending program. ALL STUDENTS will have to complete a Direct Loan Master Promissory Note (MPN) in order to receive a loan for 2010-2011.

What is the Direct Loan Program?

MCU currently processes federal loans through the Federal Family Education Loan program (FFELP). Under this program the student borrowed from their chosen bank, credit union, or other lender that participated in the program. Under the Direct Lending Program, your federal loan will come directly from the US Department of Education.

Why are we changing to the Direct Loan Program?

On March 25, 2010, the US House of Representatives and the US Senate passed The Health Care and Education Affordability Reconciliation Act of 2010. This bill mandates that, effective July 1, 2010, all federal student loans (Stafford, Plus and Grad Plus) be processed through the Federal Direct Loan Program. The FFELP program as explained above is eliminated effective June 30, 2010.

Is my eligibility for loans and the amounts I can receive the same?

Yes, they are the same in both programs.

What do I need to do to obtain a loan for 2010-2011?

You will need to have completed a 2010-2011 FAFSA. Then, you MUST complete a Direct Loan Master Promissory Note (MPN) before your loan is eligible to be processed. This can be completed at www.studentloans.gov. You will need the same PIN that you used to complete your FAFSA to sign into the website. If you do not have a PIN, you may obtain a PIN at www.pin.ed.gov. If you have forgotten or misplaced you PIN, you may obtain a duplicate PIN at the same website. You accept your Direct Loan when you sign the MCU Financial Aid Award Letter.

Can I complete the MPN now to get a head start?

YES!! You can complete it any time for a Stafford Subsidized or Unsubsidized loan. MCU will be notified once you complete the MPN. If you are a parent wanting a Parent Plus or Graduate student wanting a Grad Plus loan, the Department of Education is working on some additional changes. So, we recommend you wait to complete the Parent Plus or Grad Plus MPN at a later date.

What is involved in Entrance Counseling?

Students who are borrowing for the first time MUST complete an Entrance Counseling Session. This is available at the same website as the Direct Loan MPN. Continuing students currently participating in the Stafford Loan Programs are not required to complete an Entrance Counseling Session with the Direct Loan Program. However, we strongly encourage you to do so.

What will happen to the existing loans that I have borrowed from other lenders?

After you graduate or drop below half-time, you have a choice. You may either make separate payments to your previous lender(s) for your FFELP loans and the Department of Education for your Direct Loans, or you can consolidate all your loans into one loan with the Department of Education.