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Financial Aid Loan FAQs

Loan FAQ's

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 federal government.

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 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.




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