STUDENT LOAN BORROWING

How to apply for a student loan Federal Direct Loan

  1. Fill out the FAFSA at StudentAid.gov.
  2. Use your college's online student account to accept, decline or reduce your financial aid award options.
  3. Complete online student loan entrance counseling at StudentAid.gov. You have to do this before the funds can be sent to the school.
  4. Sign a Master Promissory Note (MPN). You can get a paper MPN or do it online at StudentAid.gov. The MPN is not an application but a legal, binding contract that you will repay the loan.

Federal PLUS Loan

  1. The student must fill out the FAFSA.
  2. A parent of a dependent undergraduate student must fill out the PLUS Loan application from the school's financial aid office or online at StudentAid.gov.
  3. The U.S. Department of Education will perform a credit check at no charge.
  4. The funds are disbursed directly to the school.

Funding Your Future

Borrow responsibly

One major financial goal is to finish college owing as little money as you can. When you take out a student loan, you're borrowing against your future earnings.

Check with the career services or placement office at your school to get an idea of your expected salary based on your major and job outlook in the year you'll graduate.

Your monthly payment should be no more than 10% of your monthly salary.

Estimated Payments at 6.39% over 120 months. Monthly payments are rounded up.

Initial Debt at RepaymentMonthly PaymentsTotal Repaid
$ 5,000$ 54$ 6,480
$ 10,000$ 109$ 13,080
$ 20,000$ 217$ 26,040
$ 25,000$ 271$ 32,520
$ 30,000$ 326$ 39,120
$ 40,000$ 434$ 52,080
$ 50,000$ 543$ 65,160
$ 75,000$ 814$ 97,680
$100,000$1,085$130,200
Expected SalaryMaximum Manageable Monthly PaymentManageable Education Debt
$ 15,000$ 125$ 12,500
$ 20,000$ 167$ 16,700
$ 25,000$ 208$ 20,800
$ 30,000$ 250$ 25,000
$ 35,000$ 292$ 29,200
$ 40,000$ 333$ 33,300
$ 50,000$ 416$ 41,600
$ 100,000$ 833$ 83,300