Financial Aid Loan FAQs
Q. I am a new student and my parents will be taking care of applying
for financial aid. Is it OK if they complete the Direct Stafford Loan Master
Promissory Note (MPN) and Entrance Counseling for me? No, because you are the borrower, you must complete the MPN and Entrance
Counseling yourself. It is important to know your rights and responsibilities
as a loan borrower as this is a legal binding commitment between you and the
Q. I am a current student and I have previously completed a
Master Promissory Note (MPN) and Entrance Counseling when I borrowed a Federal
Direct Stafford Loan for my attendance at Endicott last year. Do I have to
complete them again this year? No, if you have previously completed a Master Promissory Note (MPN) and
Entrance Counseling for the Federal Direct Stafford Loan program, you will not
be required to complete them again.
Q. I am a current student. Will I have to repay both my Federal
Stafford Loan that I borrowed through a private lender in a prior year (Key Bank
as an example) and my Federal Direct Stafford Loan at the same time?
Yes, unless you choose to consolidate the loans. We would recommend that
you consider the benefits of consolidating your Stafford Loans when you
graduate - those through a private lender (Key Bank as an example) with your
Federal Direct Stafford Loans - in order to make repayment easier and more
convenient. Most of the repayment terms of the two loans are the same.
Q. When do I have to start repaying my loan? Parent PLUS Loan borrowers must begin repaying their Federal Direct PLUS
Loan within 60 days after the full amount that you have borrowed for the year
has been disbursed unless you apply and qualify for a deferment or forbearance.
Student Direct Stafford Loan borrowers must begin repaying their federal loans
six months after they are no longer enrolled or drop below half-time, although
interest on unsubsidized Stafford Loans begins accruing upon disbursement of the
loan. We recommend that both student and parent borrowers consider paying the
interest even when the principal payment is deferred.
Q. Can I transfer a Federal Direct PLUS Loan to my child so that it
becomes their responsibility to repay? No. A PLUS Loan made to the parent cannot be transferred to a student. You
are responsible for repaying the PLUS loan.
Q. Are there any repayment benefits available to student or parent
borrowers? Yes, you will be eligible for a .25% interest rate reduction if you have
your loan payments automatically taken out of your bank account through the
Electronic Debit Account (EDA) program.
Q. I am considering cancelling my Federal Stafford Loan or a part of the Federal PLUS Loan. What are the steps I need to take? You have a right to cancel all or a portion of any of the Federal Direct Loans within fourteen days of the disbursement notice that is sent to you by Endicott College. Your written request specifying the loan type and amount to be cancelled must be received via email or mail within fourteen days of the notice of disbursement.
Q. Can I consolidate my loan repayment into one payment? You may be eligible to consolidate your Federal Stafford and Perkins Loans through the Federal Direct Consolidation Loan Program. For additional information, you should contact your current loan servicer. Information about who currently services your loans is answered in the following question.
Q. Who is my loan servicer, and how do I make payments on my Stafford loans? To learn who your loan servicer is, please visit www.nslds.ed.gov and login using your FSA user ID. You will need to make payments directly to your servicer. Each servicer has its own payment process and can work with you if you need help making payments.