I am going to pursue my masters degree this fall overseas and need financial assistance. I have completed my FAFSA, did the online counseling on the US Federal Government Student Loan website, and submitted the Master Promissory Note online. I hope to receive the full amount for the Direct subsidized and unsubsidized loan amount. That along with my savings should cover what I need for the next 1.5 years.
Where I am confused is the mention of the "Direct PLUS" documentation. I have never applied for a federal student loan before. Because of the higher rates, I do not want to apply for the Direct PLUS loan, unless I am absolutely in need of it. However - I am confused by what seems to be a contradiction on the website:
"Applying for a PLUS Loan and the Master Promissory Note (MPN)
To take out a Direct Loan for the first time, you must complete a PLUS Application and 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 child's school or the Department."
Are the terms "Direct Loan", Direct Unsubsidized/Subsidized, and "Direct PLUS" used interchangeably? Do I have to fill out this Direct PLUS application?
Also, the Direct unsubsidized loan is not based on need. However, how will the funds be dispersed? Can it go automatically towards the tuition? (I'm assuming an escrow account would be open on my behalf by the school - and those funds would be used towards the tuition, right?)
So confused and my school (which is a large institution) does not seem to have enough resources to get back to me with any assistance or answers. Does anyone here on the message board have any personal experience or knowledge regarding the aforementioned and can help me?
Where I am confused is the mention of the "Direct PLUS" documentation. I have never applied for a federal student loan before. Because of the higher rates, I do not want to apply for the Direct PLUS loan, unless I am absolutely in need of it. However - I am confused by what seems to be a contradiction on the website:
"Applying for a PLUS Loan and the Master Promissory Note (MPN)
To take out a Direct Loan for the first time, you must complete a PLUS Application and 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 child's school or the Department."
Are the terms "Direct Loan", Direct Unsubsidized/Subsidized, and "Direct PLUS" used interchangeably? Do I have to fill out this Direct PLUS application?
Also, the Direct unsubsidized loan is not based on need. However, how will the funds be dispersed? Can it go automatically towards the tuition? (I'm assuming an escrow account would be open on my behalf by the school - and those funds would be used towards the tuition, right?)
So confused and my school (which is a large institution) does not seem to have enough resources to get back to me with any assistance or answers. Does anyone here on the message board have any personal experience or knowledge regarding the aforementioned and can help me?