Direct Loan Application Process
All Federal Direct Loans (subsidized and unsubsidized) require the completion of the Free Application for Federal Student Aid (FAFSA). Direct Loans are awarded to students on an award letter, which is sent after UND receives a valid, processed FAFSA.
When the Student Financial Aid Office receives the student’s acceptance (processed award notification) of the Federal Direct Loan, the loan application will be processed electronically with the Direct Loan Service Center.
Master Promissory Note (MPN)
To borrow a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). The MPN must be completed online at the Direct Loans Master Promissory Note website. 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).
To complete an MPN online, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site.
In most cases, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive. You can borrow additional Direct Loans on a single MPN for up to 10 years.
You'll receive a disclosure statement that gives you specific information about any loan that will be disbursed under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.
Students borrowing a Direct Loan for the first time are required to complete an Entrance Loan Counseling Session before funds may be released.
Students are also required to attend an Exit Loan Counseling Session if they drop below half-time enrollment, withdraw, or before the end of their last term of enrollment at UND.
Electronic Fund Transfer (EFT)
All student loan funds are credited directly to the student’s University account.
Any funds in excess of the amount owed the University at the time of disbursement are considered "excess aid" and are released to the student's UND Pride Card. You must activate your card at www.UNDPrideCard.com and indicate how you want to receive your refunds.
Enrollment Status and Other Changes
It's important to keep the Student Financial Aid Office and the Direct Loan Servicing Center informed of any changes in your status, so that your loan information is up-to-date. This is your responsibility.
You must notify the Student Financial Aid Office and the Direct Loan Servicing Center if you:
- Change your local address, permanent address or telephone number;
- Change your name (for example, maiden name to married name);
- Do not enroll at least half-time for the loan period certified by UND;
- Do not enroll at UND;
- Stop attending school or drop below half-time enrollment;
- Transfer to another school; or
Changes in Eligibility
If your eligibility changes (i.e. change in grade level), you can request an increase by completing the Financial Aid Award Adjustment Request Form.
You may request adjustments to your financial aid awards after the initial award notification has been processed. Such adjustment requests may include requesting, canceling or reducing a Federal Work-Study or Direct Loan award; change in grade level; or change in enrollment.
To request an adjustment of financial aid awards, complete the following form and submit it to the Student Financial Aid Office. You will receive an email notification to your U-Mail account when your financial aid package has been revised.
Please note the following regarding student loan adjustments:
- Student loan funds electronically transmitted to UND will be credited toward institutional charges. If a credit balance exists, the excess aid will be disbursed to the student.
- You may cancel all of your student loan funds prior to the loan proceeds being applied toward institutional charges.
- You may cancel a portion of your student loan funds after the loan proceeds are applied toward institutional charges. The portion of student loan funds that may be canceled is the amount of loan funds received as excess aid.
- You may request cancellation of excess loan funds up to 30 days after disbursement.
Once a loan award has been awarded, disbursement of loan funds may be delayed if you:
- have not completed an Entrance Loan Counseling session AND an MPN if you are a first-time borrower
- have not accepted your loan award on CampusConnection
- are not enrolled at least half-time at the time of disbursement
- have a financial aid hold