Financial Aid - Federal Loan Processing

Review important processing information regarding the following programs.


Direct Loan Program - Loan and Disbursement Processing

The student needs to complete a Free Application for Federal Student Aid (FAFSA) and a Master Promissory Note (MPN). Carroll determines the student’s eligibility and loan amount. A separate loan application is not required for the Direct Loan program.

A loan fee (also called an origination fee) is charged for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans. The fee is a percentage of the amount of each loan the student receives, and is subtracted proportionately from each loan disbursement.

  • Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date between July 1, 2009 and June 30, 2010, have a loan fee of 1.5 percent.
  • Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after July 1, 2010, have a loan fee of 1 percent.
  • The loan fee for all Direct PLUS Loans is 4 percent.


Master Promissory Note (MPN) Processing

The Direct Loan Electronic MPN website performs edits during the MPN completion process, which eliminates most errors and the need for follow-up.

Paper MPNs submitted with errors are returned to Carroll/student for correction. As such, Carroll generally interacts with the student. However, COD Applicant Services (800-557-7394) is available to assist students and their endorsers, when applicable, with Direct Loan MPNs and related documents.


Direct PLUS Loan Processing

As an alternative to a school-based PLUS application process, parents and student borrowers can request a Direct PLUS Loan, complete an MPN, and initiate a credit check at

Before submitting a PLUS Loan online request, parents and students should verify with Carroll's Financial Aid office that it will accept and process the request. If Carroll does not use the Direct PLUS Loan Request process, will initiate a credit check upon receipt of the origination record from Carroll.

A credit check can be processed once a parent or student completes a MPN, which includes the applicant’s authorization for a credit check to be completed, or Carroll’s credit check authorization form. A credit check can be initiated by Carroll via the COD website or by the COD System upon receipt of the Direct PLUS Loan origination data.

A credit check is valid for 90 days; as such, the COD System will not initiate another credit check if one was completed within the past 90 days. Borrowers will receive written confirmation of the credit check result.

Endorsers of Direct PLUS Loans may complete the endorser addendum online at

Credit appeals and endorser questions should be addressed to the COD Applicant Services team at the COD School Relations Center at (800) 557-7394.


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