Direct Loan Information

The Federal Direct Loan Program and What it Means for You

Spalding University began processing all student loans through the Federal Direct Loan Program in the 2010-2011 academic year. This decision was made based on a number of reasons, including:

  1. The Federal Direct Loan Program is funded directly by the Federal government, simplifying the borrowing process for students and parents.
  2. The Direct Lending Program is not impacted by changes in the economy.
  3. Loans are never sold in the Federal Direct Loan Program.
  4. Loan Forgiveness Options Increased:  Loans consolidated in the Direct Loan program are able to benefit from all loan forgiveness programs the U.S. Department of Education offers to students.

The Federal Direct Loan Program offers exactly the same four loan types that you are currently offered  through the FFELP program which includes:  Federal Subsidized Loans, Federal Unsubsidized Loans, Federal PLUS Loans (for Parents of undergraduate students), and Federal Graduate PLUS Loans for graduate students.  New and returning students will be required to sign a new Master Promissory Note (MPN).  Parents who wish to borrow under the Direct PLUS loan program will also be required to sign a new MPN.  Only new borrowers will be required to complete Entrance Counseling.  You will not be required to complete Entrance Counseling if you have previously completed it for a similar Federal loan under the FFELP program.

Your Federal Stafford Student loan and PLUS loan will come to you the same way it has in the past.  The loan funds will be sent to the school and credited to your account.  To you it will look exactly the same.

Please follow the steps listed below to sign your MPN and complete Entrance Counseling (if necessary):

  1. Go to or follow the links below.
  2. You’ll need your Federal Student Aid ID.
  3. If you are a NEW Borrower (first time you have borrowed Federal Stafford Loans) then complete Entrance Counseling.
  4. If you have previously borrowed at another school and completed Entrance Counseling you do not need to complete it again.  You can have add Spalding University to the schools that are notified of previously completed counseling.
  5. All students must have a current MPN on file.  MPNs for federal student loans are valid for 10 years from signature date.

Please contact the Office of Financial Aid at 502-585-9911 ext. 4335 for specific questions.

Direct Loan Program Websites for signing your MPN and completing your Entrance Counseling (if necessary).

Federal Student Aid Personal Identification Number

General Federal Direct Student Loan Information

Federal Direct Entrance Loan Counseling

Federal Direct Lending Program Master Promissory Note, MPN

General Federal Direct PLUS Loan Information

Student Loan Repayment Calculator