Loans

Student loans can be an important source of funding for your education, and many types of loans are available. The biggest difference between loans and other forms of financial aid is that you're required to repay loans, usually with interest. 

Federal Direct Loans 

Federal Subsidized Loan 

A Subsidized loan is available to undergraduate students with demonstrated financial need, as determined by federal regulations. No interest is accrued while you are in school at least half-time (6 credits), during the grace period and during deferment periods. 

Eligibility Criteria: 

• Must file a FAFSA and have official EFC.

• Low-interest loan made to eligible undergraduate and graduate students. 

• Must be enrolled in a minimum of 6 semester-based credits as an undergraduate 

• Available to undergraduate students only. 

• Interest is paid for by the federal government while the student is in school. 

Federal Unsubsidized Loan 

An Unsubsidized loan can be an alternative source of funding to help pay for your education. The Direct Unsubsidized Loan is not based on financial need; interest is charged during all periods, even when you're in school and during grace and deferment periods. 

Eligibility Criteria: 

• Must file a FAFSA and have official EFC. 

• Low-interest loan made to eligible undergraduate and graduate students. 

• Must be enrolled in a minimum of 6 semester-based credits as an undergraduate or a minimum of 5 credits as a graduate student. (Note: Independent study courses are not eligible for federal financial aid). 

• Interest will begin accruing immediately. 

Students are strongly encouraged to pay the interest while they are in school, but if they cannot, it's automatically deferred until they graduate. 

Parent Plus 

The Direct PLUS Loan Application allows you to authorize the school to use your loan funds to satisfy other educationally related charges after tuition and fees, and room and board have been paid. You are not required to provide this authorization. 

As a parent borrower, the Direct PLUS Loan Application also allows you to: 

• Designate whether the school pays any credit balance to the student or to you. 

• Request a deferment while the student is in school 

• Request an additional deferment for 6 months after the student ceases to be enrolled at least half time. 

Eligibility Criteria: 

• Must file a FAFSA and have official EFC. 

• This loan is an alternative funding source for parents who need additional funding to meet the cost of education. 

• Parents (natural, adoptive or legal guardians) may borrow up to the cost of education minus other aid for each dependent. 

• Parents will need to apply at Studentaid.gov and sign in using their information (including their PIN number). 

• Requires a Parent Master Promissory Note. 

Federal Direct Graduate PLUS Loan 

The Direct PLUS Loan Application allows you to authorize the school to use your loan funds to satisfy other educationally related charges after tuition and fees, and room and board have been paid. 

Eligibility Criteria: 

• Must file a FAFSA and have official EFC. 

• This loan is an alternative funding source for graduate, law and medical students who need additional funding to meet the cost of education. 

• Graduate and professional students may borrow up to the cost of education minus other aid. 

• Graduate and professional students can apply at Studentaid.gov. 

If you are borrowing a Direct Unsubsidized Loan for the first time, you must: 

• Participate in Entrance Counseling 

• Sign a Master Promissory Note. 

Master Promissory Note 

By signing a Master Promissory Note (MPN), you, the borrower, agree to repay the loans that are guaranteed using the note. 

MSU participates in the serial process, which means you should only have to complete one MPN for each loan type borrowed (Direct Loan, Perkins Loan, etc.). The MPN will remain valid for 10 years unless you file for bankruptcy. If you sign the MPN and then decide not to borrow for 12 months, you will be required to complete a new MPN. 

• Federal Direct Loan or Direct PLUS/GradPLUS: If you're borrowing one of these loans for the first time, you must complete your MPN on the Direct Loans Master Promissory Note website. 

Entrance Loan Counseling 

If you accept federal loan(s), you're required to complete an Entrance Loan Counseling session before loan funds are released to you. Click the following to complete counseling for the loan(s) you've accepted: 

• Federal Direct Loan Entrance Counseling 

• Parent PLUS Loan Entrance Loan Counseling  

Exit Loan Counseling/Loan Repayment 

When you drop below half-time enrollment, withdraw from MSU, or before the end of your last semester of enrollment at MSU, you must complete Exit Loan Counseling. Click the following to complete counseling for the loan(s) you have taken out: 

• Subsidized, Unsubsidized, and/or GradPLUS 

• Federal Perkins Loan 

• Federal TEACH Grant 

Private Education Loans 

Private educational loans are loans that can be used to pay for your educational costs at MSU. There are a variety of different lenders that offer private loans, and every loan is different. 

You should compare and contrast as many different lenders as possible. A quick way to do this is to use the FASTchoice tool, which allows you to easily compare and contrast key aspects of different private loan options. FASTchoice is not a lender and not every institution that offers private loans will appear in FASTchoice. 

If you can't remember who your lender or loan holder is, you can access repayment information and your loan servicer through the FAFSA website on your Dashboard page. 

Defaulted Student Loans 

The U.S. Department of Education's Guide to Defaulted Student Loans provides information for borrowers whose federal loans are in default status.