Financing FAQ

What is the difference between a Direct Subsidized Loan and a Direct Unsubsidized Loan?
With the Direct Subsidized Loan, interest does not accrue while you attend school more than half-time. The Financial Aid Office awards this loan on the basis of need, according to the Federal eligibility formula. Anyone who completes a FAFSA can qualify for the Direct Unsubsidized Loan, on which interest accrues while you attend school.
What if I can't pay the interest while I'm in school?
You may capitalize the interest. This means the interest you earn is added back onto the principal of the loan. This ultimately makes the loan more expensive because your interest is accruing interest.
Should I consolidate my loans after graduation?
Consolidating your loan is more expensive in the long run even though your monthly payments may decrease. Consolidation may extend the loan period and may even increase the interest rate; therefore, you will end up paying more over time. In addition, when you consolidate you may lose many of your loan benefits, such as deferments and grace periods. For information about Direct Consolidation, visit
Will I need to complete an Entrance Interview each year?
No. You need to complete an Entrance Interview only once for each type of loan. For example: If Wendy Wellesley is awarded both a Federal Perkins Loan and a Direct Unsubsidized Loan, she must complete two Entrance Interviews (one for the Direct Loan and one for the Perkins).
Can I complete my Entrance or Exit Interview online?
Yes, you can complete entrance and exit interviews on-line for the Direct Loan, Federal Perkins Loan, Wellesley College Loan, and Plitt-Kirgan Loan.
When can I sign for my loan?

If you have a Direct Loan (Subsidized or Unsubsidized) you will complete your Entrance Counseling and sign your Master Promissory Note (MPN) online through the Department of Education.

If you have a Federal Perkins Loan, a Wellesley College Loan or a Plitt-Kirgin Loan, a servicer for University Accounting Service (UAS) called will notify you when you are able to complete your Entrance Counseling session and Master Promissory Note (MPN) online.

See also: Frequently asked financial aid questions about:

See also:

If you have further questions or concerns, please contact us in the Student Financial Services Office.