Next Steps for Direct Loans

Congratulations on completing your Direct Loan Master Promissory Note (MPN). You were given this Website to better understand the next steps in the Direct Loan process.

NOTE: Borrowers need to complete the appropriate MPN for each of the three Direct Loan programs where funds are borrowed:

  • Federal Direct Subsidized and Unsubsidized Loan
  • Federal Direct Graduate PLUS Loan
  • Federal Direct Parent PLUS Loan

Student Borrowers

As the student borrowing Subsidized and Unsubsidized Loans or a Graduate PLUS Loan, your MPN secures your loan funding assuming you have already accepted the loans on your Award Offer.

If you are a new loan borrower at UC or a frist-time borrower of the Graduate PLUS Loan, you must also complete loan entrance counseling on the same Website as the MPN. Failure to do so will result in a delay in your loan funds until it is complete.

Parent Borrowers

Parents borrowing the Parent PLUS Loan will need to work with their student to establish delegated access via Catalyst if the parent wishes to view the online bill. Assuming the loan has been accepted on the Award Offer, you can monitor the loan on the bill through the next steps in the process.

In cases where a parent is denied a Parent PLUS Loan, the student is eligible for additional loan funds. These loans will be offered to students via a revised Award Offer as soon as we are informed of the PLUS denial and the student's desire to pursue the additional unsubsidized loan eligiblity. The process can take up to 5 business days.

Loan Estimates & Amounts

Student Financial Aid will secure your loans and process your loan funds in connection with Student Accounts, the office responsible for billing. Loan funds, by federal regulation, arrive no sooner than 10 days prior to the start of the term (or your specific start date if you have flex classes with a later start date). Until your funds can post to your account, your bill should show anticipated aid. Be sure your anticipated aid is appropriate to your course registration requirements for the aid sources.

Your loan amount should be an equal portion of your loan based on the loan period minus any loan fees. In other words and in most cases, you will be seeing one-half of your academic year loan with an adjustment for loan fees.

Loans will not post to student accounts until 10 days prior to the term (or 10 days prior to your first class if enrolled for flex classes) due to federal regulations.

Loan Arrival & Refunds

Approximately 8-10 days prior to the term, the loan funds will post to your bill. These funds will pay toward your bill and may create an overage. Any refunds for credit balances caused by loans will be processed by Student Accounts.

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Anticipated aid will appear for accepted aid (including loans). However, your eligibility for any aid source will be evaluated fully at the time of disbursement, generally 10 days prior to the start of the term.

Key pieces of eligibility (beyond completing the MPN and, for new UC students, loan entrance counseling) are as follows:

  • acceptance of the funding via the Award Offer,
  • matriculated (i.e., in a degree-granting program),
  • registered at least half-time or co-op for the term,
  • meeting standards of academic progress, and
  • in good academic standing with your academic program.

Monitor your bill online. Understand, your eligibility for loans as well as other aid can change as you adjust your registration.

If your loan does not show as anticipated or the funds do not post to the bill at the beginning of the term, make sure you have met all of the above items and reviewed information on loan posting before contacting One Stop.