Mississippi Valley State University

September 2, 2014

Loans

WILLIAM D. FORD DIRECT LOANS

Mississippi Valley State University participates in the William D. Ford Direct Loan Program. Student and parent borrowers will receive funding for their federal student loans directly from the U.S. Department of Education rather than from private banks and other lending institutions. To sign your Direct Loan Master Promissory Note and complete Entrance Counseling, go to www.studentloans.gov.  You can accept your student loan award(s) via your BANNER Web account at http://sutton2.mvsu.edu.


Federal Direct Loan Program

Low interest loans through this program are guaranteed and provided by the federal government. These loans are repaid to direct loan servicing. Repayment is between 10 and 30 years depending on the amount borrowed and the type of repayment plan selected.

Federal Subsidized Stafford Loan

  • Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan

○     while you’re in school at least half-time,
○     for the first six months after you leave school (referred to as a grace period*), and
○     during a period of deferment (a postponement of loan payments).

Federal Unsubsidized Stafford Loan

 

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.

  • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

Federal Stafford Loan Limits

Dependent Students 

 

Grade Level 

Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized 

Aggregate Stafford Loan Limit 

Graduate and Professional Degree Student

Freshman

$5,500
(Maximum $3,500 Subsidized) 

$31,000
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Sophomore

$6,500
(Maximum $4,500 Subsidized) 

$31,000
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Junior

$7,500
(Maximum $5,500 Subsidized) 

$31,000
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Senior

$7,500
(Maximum $5,500 Subsidized) 

$31,000
(Maximum $23,000 Subsidized) 

138,500- No more than $65,500 of this amount may be in subsidized loans.

This graduate debt limit includes Stafford Loans received for undergraduate study. 

Note: Please note that a dependent student may be eligible for some additional unsubsidized loans if the parent is denied the Parent PLUS Loan.

Independent Students 

 

Grade Level 

Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized 

Aggregate Stafford Loan Limit 

Graduate and Professional Degree Student

Freshman

$9,500
(Maximum $3,500 Subsidized) 

$57,500
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Sophomore

$10,500
(Maximum $4,500 Subsidized) 

$57,500
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Junior

$12,500

(Maximum $5,500 Subsidized) 

$57,500
(Maximum $23,000 Subsidized) 

20,500- No more than $8,500 of this amount may be in subsidized loans.

Senior

$12,500

(Maximum $5,500 Subsidized) 

$57,500
(Maximum $23,000 Subsidized) 

138,500- No more than $65,500 of this amount may be in subsidized loans.

This graduate debt limit includes Stafford Loans received for undergraduate study. 

Federal Direct Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1

Complete your Direct Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action 

Step 2
Complete Entrance Counseling at
https://studentloans.gov/myDirectLoan/index.action.

Step 3 (Only for Students who have Graduated or  Withdrawn from School)
Complete Exit Counseling at
https://studentloans.gov/myDirectLoan/index.action  if you withdraw, graduate, or stop going to school and returning to Mississippi Valley State University.

Mississippi Valley State University LOAN CERTIFICATION POLICY

Minimum Requirements for applying for a student loan:

  • Be enrolled for at least 6 credit hours
  • Meet the current Mississippi Valley State University Satisfactory Academic Progress Policy

Minimum Requirements for maintaining eligibility for a student loan:

  • Successfully complete at least 6 hours for each term of loan disbursement
  • Earn and Maintain a satisfactory GPA
  • Meet satisfactory academic progress for completion rate and maximum time frame (unless waived as a result of an appeal for extenuating circumstances)

Federal Direct PLUS Loan

This is a loan for parents of dependent students. The maximum loan amount is the difference between the student’s cost of attendance and other aid the student receives. PLUS loans are the financial responsibility of the parent, not the student. Interest begins to accrue on the day of the first disbursement and repayment begins within 60 days after the last disbursement on the loan.

Federal Direct PLUS Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1
Complete the Parent PLUS Loan Application Form and submit it to the office of financial aid,

Step 2

Complete the Parent PLUS Loan Application Form through Direct Loans by visiting: 

https://studentloans.gov/myDirectLoan/index.action  

Step 3

The Students parent must complete his/her Direct PLUS Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action 

Federal Direct GRAD PLUS Loan

This is a supplemental loan made available to graduate or professional students who need to borrow more than the maximum subsidized and unsubsidized loan amounts to meet educational costs that are not covered by other financial aid.  Students interested in this loan must complete the FAFSA and must be enrolled in at least half time in a graduate or professional program. The interest rate for the PLUS loan is fixed at 7.9% and a credit check is required.  There is no grace period for the Graduate PLUS loan.

Federal Direct GRAD PLUS Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1
Complete the GRAD PLUS Loan Application Form and submit it to the office of financial aid,

Step 2

Complete the GRAD PLUS Loan Application Form through Direct Loans by visiting: 

https://studentloans.gov/myDirectLoan/index.action  

Step 3

The students must complete his/her Direct GRAD PLUS Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action 

Entrance Counseling

U.S. Department of Education regulations require all first-time borrowers of Federal Stafford (Subsidized and Unsubsidized), Parent PLUS and /or GRAD PLUS Loans to complete an entrance interview. The Office of Financial Aid cannot process a student’s loan until counseling has been completed. Access the entrance counseling online at­­­­­­­­­­­­­­­­­­ https: https://studentloans.gov/myDirectLoan/index.action

 Financial Aid TV- Please view FA TV for additional information on Entrance Counseling. However, this doesn't take the place of you completing the official Entrance Counseling via the link above.

Exit Counseling

U.S. Department of Education regulations require Federal Stafford (Subsidized and Unsubsidized), Parent PLUS and /or GRAD PLUS Loans recipients to complete an exit interview when graduating from or when leaving Mississippi Valley State University. Access the exit counseling online at https: https://studentloans.gov/myDirectLoan/index.action

Financial Aid TV-  Please view FA TV for additional information on Exit Counseling. However, this doesn't take the place of you completing the official Exit Counseling via the link above.

NSLDS for Students

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for student aid. It receives data from schools, agencies that guaranty loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. NSLDS provides a centralized, integrated view of Title IV loans and Pell grants that are traced through their entire cycle: from aid approval through closure. Access this information online at https://www.nslds.ed.gov/nslds_FAP/secure/logon.jsp.

 

 Private/Alternative Loans

Private/ Alternative Loans are available to students and our institution does certify these type of loans. However, the institution will only certify these type of loans up to need or cost of attendance if eligible. However, the institution leaves the decision up to the student and/or parents to choose his/her own lender to assist them with funding their education.