Direct Stafford Loan Q: How do I apply for a Direct Stafford Loan? A: As with all federal student aid, you apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their applications. The information on your FAFSA is transmitted to the schools that you list on the application, and those schools use the information to assess your financial need for student aid. How Do I Accept a Direct Stafford Loan? Your school will notify you of the loan amounts that it is offering, usually in an Award Letter that lists all of your proposed financial aid awards (your award package). You should evaluate the aid offer carefully. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. If your living expenses are not as high as the standard allowance projected by your school, you may not have to borrow as much as the amount in the award letter. To get an idea of your monthly loan payments after you graduate, take a look at our repayment calculator. You have the right to decline the loan or to request a lower loan amount. In the award letter your school will tell you how to do this. How Do I Sign My Direct Loan Master Promissory Note (MPN) To take out a Direct Stafford Loan for the first time, you must complete a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). The MPN will be provided either by your school or the Department. If your school offers the option of completing the MPN electronically, you can complete the MPN online at the Direct Loans Master Promissory Note website. To complete an MPN online, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site. A parent borrower must also request a PIN number from the PIN site to use when completing a PLUS MPN. In most cases, once you have submitted the MPN and it is been accepted, you will not have to fill out a new MPN for future loans you receive. Unless your school does not allow more than one loan to be made under the same MPN, you can borrow additional Direct Loans on a single MPN for up to 10 years. If you are applying for a Direct PLUS for the first time as a graduate/professional student, you will need to complete and sign a PLUS MPN that is separate from the one that you use for your Direct Subsidized and Unsubsidized Loans. You will receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts. Learn more at the Department of Education web site at www.ed.gov/DirectLoan/