Undergraduate Loan Information

Educational loans are considered a form of financial aid that many students utilize to help meet the cost of attendance that is not covered through personal resources or any scholarship and grant funding. There are a variety of loan programs for you to consider. It is important to understand the loan options available so you can make informed decisions about how much loan money to should borrow, and which loan program best suits your needs. Our loan programs include:

Federal Direct Stafford Loan

Receiving federal financial aid for college begins with the FAFSA, Free Application for Federal Student Aid. Federal grants, if applicable, and loans (subsidized/unsubsidized) awards are determined by the filing the FAFSA.

  • Click here for additional information on the process to apply for financial aid.

In order for your Federal Direct Student Loan to disburse to your account, we must have two items on file in the Student Financial Services Office:

Master Promissory Note

Student and Parents who are first-time borrowers under the Federal Direct Loan Program (Direct Loans-Subsidized/Unsubsidized, Direct PLUS Loans, Direct Graduate PLUS Loans) are required to complete and sign a master promissory note (MPN) before their loan proceeds can be released. The MPN is a legally binding agreement to the terms and conditions of the loan. By signing it you are promising to repay your loan. It is a good idea to save a copy for your records.

Steps to completing the MPN online
  • Use Microsoft Internet Explorer as your web browser.
  • Sign-In to the following website, https://studentloans.gov

  • The student will need to log in with their SSN, 1st 2 characters of their last name, DOB and PIN. If the student has misplaced the PIN, please visit www.pin.ed.gov.

  • On Welcome Page, please choose "Complete Master Promissory Note" and select the appropriate loan type.

Please Note: Once you have signed your MPN you must allow the University of Delaware two business days to receive confirmation.

Entrance Counseling

First time Federal Direct Student Loan (Subsidized/Unsubsidized and/or Graduate PLUS) borrowers at the University of Delaware must complete the online Loan Entrance Counseling and Quiz before loan funds can be disbursed. Completion of the Loan Entrance Counseling and Quiz is a federal requirement that discusses your rights and responsibilities as a Federal Direct Student Loan borrower.

Steps to completing Federal Entrance Counseling (STUDENT)

  • Use Microsoft Internet Explorer as your web browser.
  • Sign-In to the following website, https://studentloans.gov
  • The student will need to log in with their SSN #, 1st 2 characters of their last name, DOB and PIN. If the student has misplaced the PIN, please visit www.pin.ed.gov.
  • On Welcome Page, please choose "Complete Entrance Counseling".
  • At this point you will be directed through Entrance Counseling Steps, please allow 30 minutes to complete the counseling session.

Please Note: Once you have completed entrance counseling you must allow the University of Delaware two business days to receive confirmation.

Prior to graduating, leaving the university, or dropping below half-time, federal loan borrowers are required to complete a mandatory exit counseling session. Exit interviews are mandatory because it is a federal law and a condition of receiving a federally funded student loan.

Exit Counseling

An exit interview is a mandatory loan counseling session that provides loan repayment, grace period, billing options information, and collects updated borrower information as required by the federal government. Prior to graduating, leaving the university, or dropping below half-time, federal loan borrowers are required to complete a mandatory exit counseling session. These online exit-counseling sessions provides a borrower their rights and responsibilities as a Federal Loan Recipient. Exit interviews are mandatory because it is a federal law and a condition of receiving a federally funded student loan.

Direct Loan Exit Counseling (Subsidized and Unsubsidized)

Direct Loan on-line exit counseling require to login with your Department of Education Pin Number. (If you do not have a PIN or have misplaced, please visit www.pin.ed.gov) You will complete the exit counseling on the National Student Loan Data System (NSLDS) student website. There will be a series of short quizzes that you will be required to complete before continuing throughout the session. Please note that you must complete the entire session once you begin. If you exit the counseling before completing the session and return later, you will need to start over from the beginning. The entire session takes approximately 30 minutes to complete.

What information do I need to complete Exit Counseling?

At the end of the exit counseling session, you will be asked for information that will be included as part of your loan records. This includes names, addresses and phone number for your next of kin, two references who live in the United States, and your future employer (if known). You will also need your driver's license number. Having this information with you when you start will make your exit counseling session go more quickly and smoothly.

Where do I complete Exit Counseling?

You can complete Exit Counseling at www.nslds.ed.gov/nslds _SA/.

What happens if I do not complete Exit Counseling?

A hold may be placed on your records and transcripts for failure to complete your exit requirement.

Do I have to complete Exit Counseling if I received my undergraduate degree and I am continuing my education pursuing a graduate degree?

Yes, students transitioning from an undergraduate program to a graduate program are also required to complete exit counseling.

Federal Perkins Loan Exit Counseling

Perkins loan exit counseling is required for students who have received a Federal Perkins Loan during their enrollment at the University of Delaware. Federal Perkins Loan Exit Counseling must be completed by students who drop below half-time, take a leave of absence, withdraw or graduate

When do I complete Federal Perkins Loan Exit Counseling?

University of Delaware students that received Federal Perkins Loan will have their loans serviced by University Accounting Services (UAS). Students will receive an email noticed directly from University Accounting Service (uasloanservice@uasecho.com), which will direct you to log onto the student Loan Exit Counseling Website to complete the Federal Perkins Student Loan exit counseling. PLEASE NOTE: do not sign-on to UAS until after you have received this initial email.

What information do I need to complete Exit Counseling?

Students are required to provide names, addresses, and telephone for a next-of-kin, two personal references at different addresses, and future employer if known. The collection of this data is a federal requirement and all information provided will remain confidential.

Do I have to complete Exit Counseling if I received my undergraduate degree and I am continuing my education pursuing a graduate degree?

Yes, students transitioning from an undergraduate program to a graduate program are also required to complete exit counseling.

What happens if I do not complete Perkins Loan Exit Counseling?

A hold will be placed on your records and transcripts for failure to complete your exit requirement.



Although your credit history was not taken into account when you received federal student loans, your credit history will be affected if you do not repay your federal student loans under the repayment plan you agree to when you enter repayment.

Timely repayment of your student loan obligations builds a good credit record. If you have a problem repaying your student loan, contact your lender before your payment due date.


Please Note: A Federal Student Aid Pin (the same PIN you used to sign your FAFSA) is required to complete all of the federal mandatory items listed above. If the student has misplaced the PIN, please visit www.pin.ed.gov.

Federal Direct PLUS Loan (Parents)

Parents of dependent undergraduate students may apply for the Federal Direct PLUS Loan to cover educational expenses that are not covered by the FAFSA package.

IMPORTANT: You must have a valid FAFSA on file for the academic year for which you are applying the PLUS loan.

A printable copy of the following information can be found here: 2012-2013 Parent Plus Loan Supplement

The Parent PLUS Loan Application, Master Promissory Note, and Entrance Counseling can be completed here:  studentloans.gov. (Note: Entrance Counseling should be completed by first-time Plus Loan borrowers.)

How do I apply for a PLUS loan?

First, file the Free Application for Federal Student Aid (FAFSA) or renewal FAFSA for the 2012-2013 academic year at www.fafsa.ed.gov. Then complete the 2012-2013 Federal Direct PLUS application on StudentLoans.gov and the information will be forwarded to student Financial Services for verification. To complete the online application, sign in under "Manager My Direct Loan" using your Department of Education's FAFSA PIN to Complete PLUS Request process. You must be the biological (including non-custodial), adoptive or in some cases, the step-parent of the student. Also, you must be a U.S. Citizen or Eligible Non-Citizen (e.g. Permanent Resident) to be eligible for this loan. Borrowers are subject to a credit check to determine credit-worthiness. Parents with an adverse credit history, including being more than 90 days or more past due in the repayment of a debt, or those who defaulted or foreclosed on a loan, or filed bankruptcy in the past may be denied a PLUS loan.

How much can I borrow?

The maximum amount you may borrow for any semester is the difference between the cost of attendance (tuition, fees, room and board, books, etc.) and the financial aid that the student is already receiving for that semester. If you are applying prior to the cost being established for the year (typically in July), and you would like to request that we process the loan for up to cost of attendance then please specify that on the application. We will then process the loan after the rates are set in early July for the difference between the cost of attendance less your financial aid package.

Please note: There is a 4.0% loan origination fee which will be deducted from the amount that you request, i.e. if you request $10,000, the actual amount disbursed to the student will be $9600

What happens next?
  • The information you provided on your application is forwarded electronically to the U.S. Department of Education Direct Loans Servicing Center for approval. Borrowers are subject to a credit check to determine credit-worthiness. Parents with an adverse credit history, including being more than 90 days or more past due in the repayment of a debt, or those who defaulted or foreclosed on a loan, or filed bankruptcy in the past may be denied a PLUS loan.
  • If your loan is denied, you will be notified in writing by Direct Loans with the reason for the denial, and the name of the credit bureau from which the denial was obtained.
  • If your loan is approved, you will be notified in writing by Direct Loans. IMPORTANT: you may have to complete the Electronic Master Promissory Note (MPN) online; refer to "Completing the Master Promissory Note" for instructions on how to complete your MPN. Please note the loan funds will not be disbursed to the student's school account until the MPN is completed.
How will the PLUS loan be disbursed?

Academic year PLUS loans are disbursed into your student's school account in two disbursements, usually at the beginning of each semester. The actual amount disbursed will be the amount you requested minus the origination fee of 4%. The funds are applied to the student's University billing statement. Unless parents request otherwise, credit balances are refunded to the parent borrower instead of the student. Requests for refunds can be made via email to credit-refund@udel.edu. If the student receives additional financial assistance after the PLUS application is certified, one or both of the loan disbursements may be reduced or cancelled to prevent over-awards.

When do I have to begin repaying my loan?

You may choose to defer payments on your PLUS loan until six months after the date the student ceases to be enrolled at least half-time (6 credits). The Direct Loan Service will provide you with the option to pay the interest that accrues on the loan prior to the start of repayment, either monthly or quarterly, or capitalized quarterly. Alternately, you may choose to begin repayment 60 days after the loan is fully disbursed, e.g. 60 days after the Spring 2013 disbursement if your loan is for both fall and spring semesters, or for Spring 2013 only. If you do so, the interest that accrues from the first disbursement to the start of the repayment will be capitalized.

What are my options if I'm denied a PLUS loan?

If your loan is denied due to adverse credit, the Direct Loan Servicing Center will send you documents for you to add an Endorser to your loan. If you choose not to use an Endorser, your student may be eligible to receive additional funds as a Federal Stafford Unsubsidized Loan. The additional Unsubsidized Loan amount available each year is $4000 maximum for first and second year students (up to 59 credits earned) and $5000 for third and fourth year students (60 or more credits earned). Promptly notify Student Financial Services in writing via email to finaid-loan@udel.edu; please include the student name, student id, parent borrower name, additional amount requested for each term as well as your decision to use either an endorser or to request that the student be awarded the provisional unsubsidized loan. You may also file an appeal with the Direct Loan Servicing Center if you are confident there is no basis for you to be denied the loan. They will explain to you what steps you need to take to get an override to the credit decision.

Can I make changes to my loan?

Yes. At any time during the loan period(s) you may request that the loan amount(s) you were approved for be reduced or cancelled. An increase to the original request may require a new loan to be processed for the additional amount only. However, in all these cases your request for a loan change MUST be submitted in writing via email to finaid-loan@udel.edu; please include the student name, student id, parent borrower name, additional amount requested for each term on this communication. (i.e. $2000 Fall; $2000 Spring).

Is there a deadline to submit my application?

Please bear in mind that it is your responsibility to meet all UD bill payment deadlines. Your application must be submitted in sufficient time to allow processing and disbursement of funds. Payment for the Fall semester is due August 1.

What should I do if the loan I applied for is not showing on my semester bill?

If the Direct PLUS loan you applied for is not reflected on your semester bill, from your online bill in Campus Finances, you may indicate you have an additional pending credit, specify PLUS loan and then deduct the amount. This will allow you to pay a partial or even no payment from your semester bill but you will be considered financially clear for your first billing. Failure to take action from your online bill could result in late or installment penalties. Remember, the amount of your loan that you can deduct from the bill is the amount you requested minus the 4.0% origination fee.

Completing the Master Promissory Note
Who should complete the PLUS MPN?

The parent who applied for the loan must be the same parent to complete the MPN. If the loan is approved and this is the first time the parent is borrowing a PLUS loan for this student, or if the parent needed an endorser on a previous PLUS loan.

When should the MPN be completed?

Parents should complete their MPN if necessary, soon after they have been notified by Direct Loans that their PLUS loans have been approved. Remember, your loan application is not complete until you have completed a MPN.

Steps to completing the MPN online
  • Use Microsoft Internet Explorer as your web browser.
  • Sign-In to the following website, https://studentloans.gov

  • You will need your SSN#, 1st 2 characters of your last name, DOB and PIN. (You cannot use the PIN that was issued to the student or another parent.) If you do not have a PIN or have misplaced, please visit www.pin.ed.gov.

  • On Welcome Page, please choose "Complete Master Promissory Note" and select "Parent PLUS".

Please Note: The Promissory Note should only be completed once the parent has received confirmation that the loan has been approved.

Alternative Loans

Once you have exhausted your Federal availability for Financial Aid, Alternative Loans are another option to fill in the gap between the offered aid and your total Cost of Attendance. Please note that these lenders are for private student loans and are not to be used for Parent PLUS Loans or student Federal Direct Loans (Stafford Loans).

If you are a current student who wishes to find out more information about Alternative Loan Programs, please select the link below. By doing so, you will have access to a list of several alternative loan lenders that are frequently used by our students. Please keep in mind that you are not required to use one of the lenders displayed at the end of the counseling session. These lenders are presented for informational purposes only.

**The lenders which appear on the list presented at the end of this counseling session were chosen based on the lender's ability to receive electronic loan certifications, send Electronic Funds Transfer (EFT), and fee structure. Most loans presented at the end of this counseling session have zero fees for all borrowers. A few of the lenders included in the list may charge fees for borrowers with poorer credit and/or require that some payments be made while in school. Please read all fee and interest rate information carefully before AND after approval.

If the student is a resident of NJ they may be interested in taking an alternative loan through NJ Class. More information can be found at:

  • NJ Class(for NJ residents only and Requires a FAFSA to be filed.)

For more information about Federal Direct Loans please visit their website:

http://www.ed.gov/offices/OSFAP/DirectLoan/index.html