Applying for Aid
Types of Loans
Required Items for Loan Funding Process
After a student has selected a lender, he/she may then complete a master promissory note. Listed below are some key items required for proper loan funding process:
- FSA ID Website
An FSA ID is compromised of a username and password and is required in order to e-Sign your Federal Direct Loan MPN and other federal student aid documents.
- Master Promissory Note
A Direct MPN is required of all new and current borrowers.
- Entrance Counseling
Federal Direct Entrance Counseling is required for new borrowers who have not already completed an Entrance Counseling Session.
- Exit Counseling
Federal Direct Exit Counseling is required prior to graduating or leaving Alabama State University; borrowers are required to complete an exit counseling session.
- Loan Consolidation
Consolidate your FFELP loans with your Federal Direct Loans when you graduate if desired.
Pros & Cons of Consolidation
A Consolidation Loan can lower the borrower's total monthly repayment and simply loan repayment. Because the repayment period for the Consolidated Loans is often longer than for most Stafford Loans, the monthly payments may be lower.(On the other hand), the total interest that is paid over the longer repayment period is usually greater.) If the borrower has more than one loan, a Consolidation Loan simplifies repayment because there's only one lender and one monthly payment. Consolidation may be an option for a borrower in default, if certain conditions are met. The borrower should also be aware that some deferments and other benefits available with his/her current loans (especially Perkins) may be lost through consolidation.