Frequently asked questions regarding direct loans.

Q: What are the benefits of the Direct Loan Program?

Several of the benefits are:
    •    A guaranteed source of funding for student loans.
    •    The option of an income-contingent repayment plan or an income-based repayment plan when a student enters repayment. This means a borrower has the option of ensuring that the loan repayment amount will always be affordable based on what an income will allow.
    •    Students in the Federal Direct Loan Program who enter into public service jobs can have any remaining balance on loans forgiven after 10 years of repayment while in public service work. (While this option does not exist in the FFEL Program, students who borrowed in that program can consolidate their loans to the Direct Loan Program in order to take advantage of this forgiveness).
    •    The Federal Direct PLUS loan origination fee is lower, with an interest rate for Parent and gradPLUS loans of 7.9% compared to 8.5% in the lender-based FFEL Program.

Q: What do I have to do to get my loan funds?

You will have to complete a FAFSA for Direct Loan eligibility.  Monitor myUNT To Do List for updates and requirements.  Once your file is considered complete, you will be notified about your award(s) that you must Accept or Decline via myUNT.

First-time student loan borrowers at UNT Dallas must also complete the online Entrance Counseling requirements and have a valid Master Promissory Note (MPN) on file.

Q: Can I go ahead and complete the entrance counseling now?

Yes.  If you are a new borrower at UNT Dallas (including transfer students), you may complete your Federal Direct Loan Entrance counseling at anytime.  This can be done at  You will need your PIN number (as assigned when you signed the FAFSA) and enter University of North Texas as a school to receive the results. Parent and gradPLUS borrowers do not need to complete Entrance Counseling.

Q: If I borrowed through a private bank last year, will I have to pay two different lenders now?

Your Federal Direct Loan will be serviced by the Department of Education, so you will receive correspondence and payment information from both the Department of Education and your prior lender or servicer. You have the option of consolidating all of your FFEL Stafford loans with the Direct Loan program after you graduate or leave school.  If you consolidate with the U.S. Department of Education, your previous federal loans would be paid in full and all of your payments would be made to the Direct Loan program.


Q: What happens to the Stafford loans I borrowed via my bank or lender in prior years? Will they still be deferred now that UNT is changing its loan processing?


UNT Dallas reports your enrollment information through the National Student Clearinghouse to your lenders and to the National Student Loan Data system, as required by Federal Law, on a regularly scheduled basis to assure your deferment status is current.

Where can I find information about deferments or forbearance requests?

For Direct Loans forms, go to


Q: Where do I find information about Federal Loan Consolidation?


Q: What are my responsibilities as a borrower?

  • Each Federal Direct Loan borrower at UNT Dallas is required to complete Student Exit Counseling shortly before completing a degree, leaving UNT Dallas (i.e., withdrawing, graduation) or ceasing half-time enrollment.  To complete this requirement, go to

  • You must pay your student loans (including interest or fees, if applicable) on time even if you don't finish your education, don't get a job, or don't feel satisfied with the education you receive.  

  • If you request deferment or forbearance, you must continue to make scheduled payments until your student loan is placed in deferment or forbearance.  

  • You must notify your student loan holder or servicer immediately of any change to your name, address, telephone number, employer, or Social Security number.

    Refer to your Promissory Note for a complete list of borrower rights and responsibilities for your student loan(s).