Office of Financial Aid Services

(This page is under construction)


Federal Regulations require all students who have been awarded Federal Direct Loans to complete Entrance Counseling and a Master Promissory Note before funds are disbursed to their student account.


Students who have not borrowed a student loan in the past or new Graduate PLUS loan borrowers are required to complete Entrance Counseling prior to their loan disbursing.  The purpose of entrance counseling is to ensure you understand the terms and conditions in borrowing federal aid.  You will need your FAFSA PIN to complete Entrance Counseling at


To ensure our students have access to educational loan funds, effective March 15, 2010, Montana State University (MSU) will begin transitioning to the Federal Direct Loan Program. If you borrow a federal Subsidized, Unsubsidized, Graduate PLUS, or Parent PLUS Loan, your funding will come directly from the U.S. Department of Education instead of from private lenders.

As a result of this transition, spring loans originating after March 15, 2010 will be processed through the Federal Direct Loan Program. This change will NOT effect existing Fall/Spring 2009-2010 loans.

Full implementation of the Direct Loan Program will begin with Summer Session 2010.

Click on the Direct Loan Information link for additional information and requirements.

The chart below shows the loan interest rates and fees for 2009 - 2010:

2009-2010 Interest Rates and Fees
Direct Loans
Federal Direct Subsidized Loan*
Federal Direct Unsubsidized Loan
Federal Direct Graduate Subsidized Loan
Federal Direct Graduate PLUS Loan
Federal Direct Parent PLUS Loan

* For academic year 2010-2011 Direct Subsidized Loan interest decreases to 4.5%.

All borrowers of Federal Direct or Direct Graduate PLUS Loans at MSU must complete the following steps to receive their Federal Direct Loans:

1. Apply for financial aid by completing the 2010 -2011 Free Application for Federal Student Aid (FAFSA).


2. Respond to your Award Notification by accepting or declining your aid offers. You will receive an e-mail when your official award notice is available. (Keep your physical and e-mail addresses up to date in your MyInfo Account!)


3. Complete the Loan Entrance Counseling for Direct Loan Borrowers if you accept any Direct Loan funds. If you are a first-time loan borrower at MSU, you must complete the Loan Entrance Counseling at the Direct Loan Servicer Website. Please note: if you previously completed Loan Entrance Counseling for any type of loan at MSU (except a Perkins or Nursing Loan), you DO NOT need to complete Entrance Counseling for Direct Loans.


4. All first-time AND previous loan borrowers must complete a Direct Loan Master Promissory Note (MPN) at:

You may also go to the Federal Direct Loan Program Website to obtain additional information.


At Montana State University, we encourage students and families to make informed decisions about financial aid. We highly recommend that you borrow only the amount of loans you need to successfully complete your education.


Updated 3/16/10