Federal Direct Student Loan (FDSL)

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Since the 1995-1996 academic year, Mount Holyoke College has participated in the William D. Ford Federal Direct Loan Program. The College receives loan funds directly from the federal government, thus eliminating the need to obtain loans through a third party. As a direct lending institution, all Federal Direct Student Loans must be processed through this program.

The fixed rate for subsidized loans disbursed between:

July 1, 2008, to June 30, 2009, is 6.0%.
July 1, 2009, to June 30, 2010, will be 5.6%.
July 1, 2010, to June 30, 2011, will be 4.5%.
July 1, 2011, to June 30, 2012, will be 3.4%.
Unsubsidized loans will remain fixed at 6.8%.

You must have a valid, current FAFSA on file to be eligible for a FDSL. After your FAFSA was filed you were automatically mailed a PIN from the Department of Education. If you do not have a PIN you can request one online from the PIN Registration.

As a Federal Direct Student Loan borrower, you must complete the following before loan funds can be credited to your tuition account:

1. Master Promissory Note (MPN)
2. Entrance and Exit Counseling

The MPN will cover all FDSLs originated on your behalf while you attend Mount Holyoke College.  Entrance Counseling is necessary to ensure you understand the loan process.  Mount Holyoke will receive electronic confirmation that you successfully completed both of the requirements (after July 1st).

Subsidized FDSL are awarded based on financial need. The school determines your financial need, in part, from the information you provide on your financial aid application. With a subsidized Direct Loan, the federal government does not charge you interest before you begin repayment or during authorized periods of deferment (postponement of repayment).  Repayment of principal and interest begins six months after a student graduates or ceases being enrolled at least half time.

Unsubsidized FDSL are not awarded on the basis of need. If you are an eligible student, you may request an unsubsidized FDSL up to the maximum annual amount. The federal government charges you interest from the time the loan is paid out to you, until you pay the loan in full.  However, there is an option to defer payment of interest during school.  Please note that interest is capitalized at repayment, which means it is added to the principal.

The net FDSL amount will be credited in late August and again in late January.

FDSL Rebate Calculation

The loan amount borrowed is subject to a 2.0% origination fee at disbursement. This is offset by a 1.5% rebate.

Contact information:

For assistance with the Direct Loan Electronic Master Promissory Note Web site
Applicant Services
COD School Relations Center
800-557-7394