Loans - ASU Mountain Home Campus
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Federal Direct Unsubsidized and Subsidized Student Loans

How to apply for a Federal Direct Student Loan

  1. Complete the Free Application for Federal Student Aid (FAFSA) using the ASUMH school code 001090.
  2. Complete entrance counseling at
  3. Complete the Direct Master Promissory Note at
  4. Complete the ASUMH Data Form once each school year after filing the FAFSA available on the FORMS page.
  5. Complete any additional documents requested by the ASUMH Office of Scholarships and Financial Aid.

Note: Students must complete the FAFSA every year to continue to apply for a Federal Direct Student Loan.

The Subsidized Federal Direct Student Loan

Eligibility for subsidized loans is based on financial need as determined by federal guidelines. A loan is called "subsidized" because the government pays interest for the student while the student is at least half-time enrolled in school (6 or more hours at ASUMH).

The Unsubsidized Federal Direct Student Loan

This type of loan is available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues during the time in school, grace and deferment periods. You may choose to pay the interest portion only while in school, which would keep your loan balance at principal. If you choose to defer such payments, the interest will be capitalized (added back to the principal at time of repayment).

What is a Master Promissory Note?

A Master Promissory Note is a signed agreement promising payment of a sum of money, i.e. by signing a Master Promissory Note for a Federal Direct Loan the student is agreeing to repay their loan proceeds to their designated servicer. Complete your Master Promissory Note (MPN) at

Why must a student complete an entrance interview?

The Entrance Interview provides the student detailed information on the Federal Direct Student Loan Program. It is very important for the student to understand their rights and responsibilities when borrowing money for school. Complete your Entrance Interview at

How much can I borrow?

Click here to view the Federal Student Aid Direct Loan website with information regarding loan amounts.

When do I begin to repay my Federal Direct Loans?

Each student is given a period of time before loan repayment begins; this is called a “grace period." The Federal Direct Loan grace period is six months after the student graduates, leaves school, or drops below half time status. Once a student exceeds their grace period, they must begin loan repayment. Federal Direct Loans are repaid to the holder of the loan, with 10-25 years to repay, depending on the total amount the student has borrowed.

Go to for additional information.