»Federal Direct Loans

The Subsidized and Unsubsidized Direct Loans are offered to students to help pay for their education.  These loans are not dependent upon a credit check and require no previous borrowing.  These loans must be repaid by the students after they graduate, withdraw or drop below half-time status.

Subsidized Direct Loan

• Need-based
• No interest while in-school
• Payments automatically deferred while in-school
• Must be enrolled at least half-time
• 6.8% interest rate*
• 1.0% origination fee – taken out at time of disbursement*

Unsubsidized Direct Loan

• Non-need-based
• Interest accrues while in-school
• Payments automatically deferred while in-school
• Must be enrolled at least half-time
• 6.8% interest rate
• 1.0% origination fee – taken out at time of disbursement*

*Subject to change.

Annual Loan Limits

If a dependent student's parent is denied a Direct Parent PLUS Loan due to adverse credit, that student will be eligible for the Independent Student loan limits.

Aggregate Loan Limits

**including the amounts borrowed as an undergraduate or credential student

How to Apply

1. Refer to the Federal Direct Subsidized/Unsubsidized & Graduate PLUS Loans Guide for more information.
2. Log on to StudentLoans.gov with your FAFSA Pin and complete Federal Direct Loan Entrance Counseling for Undergraduates.
3. While logged into StudentLoans.gov, complete the Master Promissory Note (MPN) by selecting Complete MPN from the menu on the left, and then selecting Subsidized/Unsubsidized.
4. Log on to your WebAdvisor account and accept your Subsidized/Unsubsidized loan(s).

Graduate students with no adverse credit may borrow a loan to meet their own educational costs.  Graduate students may borrow up to the cost of attendance minus other financial aid. This loan must be repaid by the student after they graduate, withdraw or drop below half-time status.

• Non-need-based
• Interest accrues while student is in-school
• Payments automatically deferred while student is in-school
• Student must be enrolled at least half-time
• 7.9% interest rate
• 4.0% origination fee – taken out at time of disbursement*

*Subject to change.

How to Apply

1. Refer to the Federal Direct Subsidized/Unsubsidized & Graduate PLUS Loans Guide for more information.
2. Log on to StudentLoans.gov with your FAFSA Pin and complete Federal Direct Loan Entrance Counseling for Graduates.
3. While logged into StudentLoans.gov, complete the Master Promissory Note (MPN) by selecting Complete MPN from the menu on the left, and then selecting Graduate PLUS.
4. While logged into StudentLoans.gov, also complete the Graduate PLUS Loan Credit Check.  This is done by selecting Request PLUS Loan and then selecting Graduate PLUS.  Complete the application and verify all of the information submitted is correct.
5. Log on to your WebAdvisor account and accept your Graduate PLUS Loan.

Parents with no adverse credit may borrow a loan for their dependent child's educational costs.  Parents may borrow up to the cost of attendance minus other financial aid.  The loan must be repaid by the parent no later than after their student graduates, withdraws or drops below half-time status.

• Non-need-based
• Interest accrues while student is in-school
• Payments can be deferred while student is in-school
• Student must be enrolled at least half-time
• 7.9% interest rate
• 4.0% origination fee – taken out at time of disbursement*

*Subject to change.

How to Apply

1. Refer to the Federal Direct PLUS Loan Guide for more information.
2. Have a parent log on to StudentLoans.gov with his or her FAFSA Pin and complete the Parent PLUS Loan MPN by selecting Complete MPN from the menu on the left and then selecting Parent PLUS.
3. While the parent is logged into StudentLoans.gov, he or she must also complete the Parent PLUS Loan Credit Check.  This is done by selecting Request PLUS Loan and then selecting Parent PLUS.  Complete the application and verify all the information submitted is correct.
4. The student should log onto his or her WebAdvisor account and accept the Parent PLUS Loan.

Perkins Loans are awarded to Chapman students with exceptional need. They are interest free while students are in school at least half time, and the rate is 5% when not enrolled or less than half time. These loans are limited to $3,000 per year, but because these funds are extremely limited, awards are seldom this high. Repayment begins six months after the borrower leaves school or drops below half-time status. Borrowers are required to complete online entrance counseling prior to their first receipt of funds and an exit interview with the Office of Student Business Services when they leave Chapman. A promissory note must be completed online prior to the loan crediting student accounts. If you are awarded a Perkins loan, information will be sent to you by the Office of Student Business Services. You will need your Federal PIN to complete the online counseling and promissory note.

Click here for more information on the Federal Perkins Loan.

Per Federal requirement, students who receive Federal Direct Loans for the first time must complete Federal Loan Entrance Counseling and the corresponding Master Promissory Note (MPN) for the loan(s).  Until these requirements are met, loan funds cannot be released to the student.

Federal Loan Entrance Counseling

Federal Loan Entrance Counseling is a process set up by the Federal government to educate new students about loans and the Federal Direct Loans program.  It consists of a short tutorial on the rights and responsibilities of the borrower followed by a short multiple choice quiz.  The process takes about 15 to 20 minutes to complete.  Federal Loan Entrance Counseling can be completed online at www.studentloans.gov by signing in with your FAFSA pin.  After logging in, you may select “Complete Entrance Counseling” from the menu on the left to start the process.

Upon successfully completing Federal Loan Entrance Counseling, an electronic statement of completion is generated within the Federal Direct Loans system.  This electronic statement is pulled down from the Federal Direct Loans system twice a week into Chapman University’s system.  Processing for this statement can take up to two days from the point at which the electronic statement reaches Chapman University’s system.

Master Promissory Note

It may be requested that you complete a MPN if one has not already been completed.  A MPN can be completed by logging into www.studentloans.gov and selecting “Complete MPN”.  Follow the steps accordingly.  Once completed, an electronic MPN will be generated.  You may wish to print a copy for your personal records.  These electronic MPNs are pulled down into Chapman University’s system twice a week and may take up to two additional days for processing after being imported into the system.

Note that a MPN must be completed by each borrower.  Federal Direct PLUS loans require a separate MPN.  For Parent PLUS borrowers, the PLUS Loan MPN must be completed by the borrowing parent.  For Graduate PLUS borrowers, a separate PLUS Loan MPN must be completed by the student in addition to the Federal Direct Subsidized/Unsubsidized MPN.

Please be aware that this is ONLY for Federal Direct Loans.  Other loans, such as the Chapman Interest-free and Perkins loans have their own requirements that must be met.

The federal government requires that borrowers who leave Chapman University for any reason complete Federal Loan Exit Counseling.  This requirement applies even if you intend to return to Chapman University following a leave of absence, for any extenuating circumstances. 

Federal Loan Exit Counseling can be completed online at studentloans.gov (Federal Student Aid - Direct Loans) by logging in with your FAFSA pin and selecting “Complete Counseling” then select "Exit Counseling".

In addition, you will need your federal PIN, the name, address, and telephone number of your next of kin, two references, and your employer after graduation (if you have one).  You will also need to report the total amount of educational loans you have received from each loan program and the current interest rate.

Information regarding all of your individual student loans can be seen, in detail, on nslds.ed.gov.

The Federal Loan Exit Counseling is similar to Federal Loan Entrance Counseling.  A step by step tutorial regarding the borrower’s rights and responsibilities will be given, followed by a short quiz.

Once completed, it will generate an electronic statement of completion.  These electronic statements are pulled down into Chapman University’s system twice a week.  After the electronic statement reaches our system, it may take up to two additional days to process.

Please be aware that by not completing Federal Loan Exit Counseling, your degree may be withheld until confirmation that Federal Loan Exit Counseling has been completed.

Please be aware that this is ONLY for Federal Direct Loans.  Other loans, such as the Chapman Interest-free and Perkins loans have their own requirements that must be met.