All students who are awarded the Federal Direct Subsidized or Direct Unsubsidized Stafford Loan or the Federal Direct PLUS Loan for Graduate Students for the first time at ADU are required by federal regulations to complete Entrance Loan Counseling prior to receiving any loan proceeds.

Students will be able to meet the requirement by doing Entrance Loan Counseling online at www.adu.edu.

Items to be reviewed will include the following:

• Explanation of all sources of aid
• What effect the loan will have on the eligibility of the borrower for other forms of student aid
• Constraints on aid
• Explanation of the use of the Master Promissory Note (MPN)
• Terms and conditions of various loan programs
• Option of the borrower to pay the interest while in school on the Direct Unsubsidized Stafford Loans or the Direct PLUS loans
• Information on how interest accrues and is capitalized during periods when the interest is not paid by the borrower or the Secretary
• Definition of half-time enrollment and consequences of not maintaining half-time enrollment
• Importance of contacting the Financial Aid Office if the borrower withdraws prior to completing the program of study
• Example of monthly repayment schedule
• Loan repayment and options, financial planning, and consequences of delinquency and default
• Keeping the lender informed
• Deferment, forbearance, and cancellation conditions
• Information on the NSLDS and how the borrower may access his or her records
• Need for the student to retain all loan documentation
• Explanation of sale and servicing of loans
• Review of refund policy
• Review of Satisfactory Academic Progress policy

First-time, first-year borrowers (students who have NEVER received federal student loans) are required to have their loan proceeds held by the Financial Aid Office for 30 days AFTER the first day of classes. If still enrolled at that time, a student’s loan proceeds may then be disbursed.