FAFSA subsidized loan acceptance process - do they run credit checks?

The federal subsidized loan process is actually pretty straightforward! Your daughter won't need to worry about a credit check - that's one of the big advantages of federal subsidized loans (unlike Parent PLUS loans where they do check the parent's credit). Here's the basic process: 1. Accept the loan through her school's financial aid portal 2. Complete Entrance Counseling (first-time borrowers only) 3. Sign the Master Promissory Note (MPN) She'll do steps 2 and 3 on studentaid.gov using her FSA ID. The MPN is basically the legal agreement to repay the loan. Once she completes these steps, the school handles the rest. The funds get disbursed directly to her school account (usually once per semester) and applied to her charges. If there's money left over after tuition/fees, the school will refund that to her.

My duaghter jst went through this last semester. They dont do credit checks for subsidied loans. She jst had to do this online counseling thing that took like 30 mins and then sign the MPN form online. Money showed up in her account like 2 weeks after school started.

Just to add some additional details to what others have said: The Master Promissory Note (MPN) for federal Direct Subsidized loans is typically valid for 10 years of continuous education. This means your daughter will likely only need to complete it once for her undergraduate education, unless she takes a break of more than a year. For the Entrance Counseling, that's definitely a one-time requirement for first-time borrowers. It explains her rights and responsibilities as a borrower. As for disbursement timing, federal regulations require schools to disburse funds no earlier than 10 days before the start of the term. Most schools disburse at the beginning of each semester/quarter. They'll first apply the funds to her account balance for tuition, fees, and campus housing if applicable. Any remaining funds will be refunded to her according to the school's refund policy (check with the financial aid office for their specific timeline). One last thing to note - if she's a first-time, first-year undergraduate student, there might be a 30-day delay before the first loan disbursement due to federal regulations.

idk why everyone's saying no credit check... my friend got denied for bad credit last yr. just saying.

Trying to reach anyone at the Federal Student Aid office to ask these kinds of questions is a NIGHTMARE. I spent 3 weeks trying to get clarification on my son's loan process and kept getting disconnected or waiting for hours. Seriously, the system is designed to make you give up. If your daughter has ANY issues with the process, good luck getting actual help from a human.

One other thing to consider - make sure your daughter understands the difference between subsidized and unsubsidized loans if she was offered both. With subsidized loans, the government pays the interest while she's in school (huge benefit). With unsubsidized, interest starts accumulating immediately. I didn't understand this distinction when I was a student and regretted not being more strategic about which loans I accepted.

Just to clarify on the disbursement timeline since a few people have mentioned different experiences: Federal regulations state that schools can disburse federal loan funds up to 10 days before the payment period begins, but many schools have their own policies within these guidelines. Some schools process disbursements right at the beginning of the term, while others may do it a week or two into the semester. I recommend your daughter check her school's academic calendar for the official disbursement dates. Many schools publish this information on their financial aid website or in the student handbook. That way you'll know exactly when to expect the funds to hit her student account.

Oh and make sure she actually complete's the online entrance counseling thing fully!! My daughter thought she finished it but didn't click some final submit button and it delayed everything by like 3 weeks. The website isn't very user friendly tbh