The William D. Ford Federal Direct Loan (Direct Loan) Program is the U.S. Department of Education's federal student loan program. The U.S. Department of Education is the lender under this program.
Federal Direct Subsidized Loan
The Federal Direct Subsidized Loan is a federally-sponsored "need-based" loan. The federal government pays the interest while you are enrolled at least half time. Interest begins to accrue when you enter repayment. This loan is available to undergraduate students only.
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is a federally-sponsored loan which has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.
In order to apply for a federal student loan, you must complete and submit a Free Application for Federal Student Aid. The FAFSA is used to determine if you qualify for any financial aid from the federal government for your college education.
After receiving your Award Letter, review it in MyNEVADA. Consider your budget and anticipated expenses, then decide how much of the loans offered to accept. The next step is to accept your loan in MyNEVADA.
Remember, you may accept your loans 48 hours after the following occur:
Entrance counseling is designed to help you understand your loan and the responsibilities and obligations of borrowing and repaying a Federal Direct Loan. New borrowers at the University of Nevada, Reno must complete entrance counseling before the University will certify your loan(s) with the lender.
Entrance counseling is completed through Federal Student Aid, an office of the U.S. Department of Education. You may log-in with your FSA ID username, email or mobile phone and associated password.
The Master Promissory Note is a legal document where you agree to repay your loan(s), including any fees or interests to the U.S. Department of Education. New borrowers at the University of Nevada, Reno must sign a Master Promissory Note before the University will certify your loan(s) with the lender.
You may sign your Master Promissory Note through Federal Student Aid, an office of the U.S. Department of Education.
If you do not complete an online Master Promissory Note, the lender will automatically mail you a printed Master Promissory Note. Remember, this process is slower and may delay your funding.
Private lenders in the Federal Family education Loan Program (FFEL) (e.g., Wells Fargo, Bank of America) no longer offer loans. If you previously borrowed a federal Federal Direct, Plus, or Graduate Plus loan through a private lender in FFEL, you need to sign a new Master Promissory Note and complete entrance counseling with the Direct Loan program.