Loans Frequently Asked Questions | Michigan Technological University

1

I have been offered a Federal Direct Loan. How do I accept it?

Once a student has been offered Federal Direct Loans as a part of their financial aid package, they can accept those loans by completing the following four-step process:

STEP ONE - Accept (or decline) your loan. Log on to MyMichiganTech, and select the Financial Aid tab and the appropriate aid year. In the Current Financial Aid section click View/Accept Awards in the upper right hand corner. Select accept (or decline), then submit your decision.

STEP TWO - Complete a Direct Loan Request Form. Once you have accepted the Direct Loan, you will be prompted to complete the Direct Loan Request Form.

STEP THREE - Complete Entrance Counseling. First-time borrowers must complete entrance counseling before funds can be disbursed. Complete your counseling online by logging in with your FSA ID (the one used for the FAFSA) and clicking on Complete Entrance Counseling located under the Complete Aid Process tab. The counseling session will take about 30 minutes to complete. This is a one-time requirement and will not need to be completed in following aid years.

STEP FOUR - Complete your Master Promissory Note. First-time borrowers are required to complete a Master Promissory Note (MPN). You will be notified via email when your MPN is ready. You will need your FSA ID (the one used for the FAFSA) to complete the MPN. You will be asked to provide your permanent address, telephone number, driver’s license number (if you have one), and email address. You will also need the names, addresses, and telephone numbers of two personal references who have known you for at least three years. References must have different addresses from one another, and one of the references should be a parent or legal guardian. The references have no obligation to the loan and are only contacted if your contact information is not current.

2

What if I only want to accept a portion of the Federal Direct Loan that was offered?

When accepting your awards on MyMichiganTech, just indicate the partial amount in the space provided.

3

What happens after I accept the Federal Direct Loan?

The Financial Aid Office will originate the loan with the servicing center. Once the loan is approved, you will be sent an e-mail notification with links to complete an electronic Master Promissory Note (MPN) and/or entrance counseling. The electronic MPN will be available online only after the loan has been approved. Entrance counseling can be done anytime at the same site.

4

When will the loan be disbursed?

Loans that are processed for the full year will be split into two equal disbursements, one for fall semester and one for spring. The disbursement dates will be provided on the disclosure statement sent to you from the US Department of Education. For billing purposes, loans that have been approved will appear as a memo credit on your account.

5

The bill is due, and I'm coming up short on funds. Are there sources of funding available other than those awarded via the FAFSA results?

There are two additional financing options - an alternative loan or a Direct PLUS loan.

Students and/or parents may apply for alternative and private loans online.
Parents can apply for the Direct PLUS Loan online.

6

When should I apply for alternative loans?

You should apply at least four weeks prior to the date your bill is due to ensure that there is enough time to complete the application process. Although you may receive instant pre-approval online from the loan company, most require you to submit additional information to them to continue processing your application.

7

What do I need to do if I've been awarded a Techaid Loan?

You may accept the loan on MyMichiganTech by selecting View/Accept Awards under the Financial Aid tab. You will also need to complete an electronic master promissory note. You will be sent an email message from ECSI with instructions on how to complete the electronic master promissory note.