# 34 C.F.R. § 685.201 (2026): Obtaining a loan > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_201 ## Section - **Citation:** 34 C.F.R. § 685.201 (2026) - **Heading:** Obtaining a loan - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 34 CFR: Education / Chapter VI / Part 685 / Subpart B / § 685.201: § 685.201 Obtaining a loan. ## Text (a) Application for a Direct Subsidized Loan or a Direct Unsubsidized Loan. (1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free Application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) Create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student. (b) Application for a Direct PLUS Loan. (1) For a parent to obtain a Direct PLUS Loan, the parent must complete the Direct PLUS Loan MPN and the dependent student on whose behalf the parent is borrowing must complete a Free Application for Federal Student Aid and submit it in accordance with instructions in the application. (2) For a graduate or professional student to apply for a Direct PLUS Loan, the student must complete a Free Application for Federal Student Aid and submit it in accordance with instructions in the application. The graduate or professional student must also complete the Direct PLUS Loan MPN. (3) For either a parent or student PLUS borrower, as applicable, the school must complete its portion of the Direct PLUS Loan MPN and, if applicable, submit it to the Secretary. The Secretary makes a determination as to whether the parent or graduate or professional student has an adverse credit history. The school performs the functions described in paragraph (a)(2) of this section. (c) Application for a Direct Consolidation Loan. (1) To obtain a Direct Consolidation Loan, the applicant must complete the application and promissory note and submit it to the Secretary ary. The Secretary makes a determination as to whether the parent or graduate or professional student has an adverse credit history. The school performs the functions described in paragraph (a)(2) of this section. (c) Application for a Direct Consolidation Loan. (1) To obtain a Direct Consolidation Loan, the applicant must complete the application and promissory note and submit it to the Secretary. The application and promissory note sets forth the terms and conditions of the Direct Consolidation Loan and informs the applicant how to contact the Secretary. The Secretary answers questions regarding the process of applying for a Direct Consolidation Loan and provides information about the terms and conditions of both Direct Consolidation Loans and the types of loans that may be consolidated. (2) Once the applicant has submitted the completed application and promissory note to the Secretary, the Secretary makes the Direct Consolidation Loan under the procedures specified in § 685.220. (Authority: 20 U.S.C. 1087a et seq., 1091a) [64 FR 58965, Nov. 1, 1999, as amended at 65 FR 65629, Nov. 1, 2000; 71 FR 45711, Aug. 9, 2006; 78 FR 65825, Nov. 1, 2013] Editorial Note: At 91 FR 23883, May 1, 2026, § 685.201 was amended by revising paragraphs (b)(2)(i) and (ii); however, the amendment could not be completed because the paragraphs do not exist. ## Nearby sections - [34 C.F.R. § 685.200 (2026) § 685.200 Borrower eligibility.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_200.md) - [34 C.F.R. § 685.201 (2026) § 685.201 Obtaining a loan.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_201.md) - [34 C.F.R. § 685.202 (2026) § 685.202 Charges for which Direct Loan Program borrowers are responsible.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_202.md) - [34 C.F.R. § 685.203 (2026) § 685.203 Loan limits.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_203.md) - [34 C.F.R. § 685.204 (2026) § 685.204 Deferment.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_204.md) - [34 C.F.R. § 685.205 (2026) § 685.205 Forbearance.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_205.md) - [34 C.F.R. § 685.206 (2026) § 685.206 Borrower responsibilities and defenses.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_206.md) - [34 C.F.R. § 685.207 (2026) § 685.207 Obligation to repay.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_207.md) - [34 C.F.R. § 685.208 (2026) § 685.208 Fixed payment repayment plans.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_208.md) - [34 C.F.R. § 685.209 (2026) § 685.209 Income-driven repayment plans.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_209.md) - [34 C.F.R. § 685.210 (2026) § 685.210 Choice of repayment plan.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_210.md) - [34 C.F.R. § 685.211 (2026) § 685.211 Miscellaneous repayment provisions.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_211.md) - [34 C.F.R. § 685.212 (2026) § 685.212 Discharge of a loan obligation.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_212.md) - [34 C.F.R. § 685.213 (2026) § 685.213 Total and permanent disability discharge.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_213.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T34_P685_S685_201. 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