The federal government makes Federal Direct Subsidized and Unsubsidized and PLUS loans directly available to students through schools across the country. No banks or guarantee agencies are involved. The U.S. Department of Education is your lender.

Private loans are available from private lenders, such as banks, savings and loan associations or credit unions. Depending on your or your cosigner’s credit strength, these loans may cost more than federal loans. Private loans may have different eligibility requirements than federal and state loans.

Entrance Loan Counseling & Master Promissory Note

If you are a first time borrower of a student loan at MSU Moorhead, you must complete Entrance Loan Counseling and Master Promissory Note before you can receive your funds. To ensure you understand the responsibility and the obligation you are assuming when borrowing a student loan, the federal government requires you participate in loan counseling prior to receiving a Federal Direct Loan.

Types of Loans

To be eligible for direct loans, you must:

  • Be accepted for enrollment in a degree or certificate program.
  • Be registered at least half-time at the time the loan proceeds are disbursed.
  • Not be in default on any other type of student loan.
  • Not owe a repayment on a student grant.
  • Not be on financial aid or academic suspension.
  • File a Free Application for Federal Student Aid (FAFSA) for the appropriate academic year.

Undergraduate students may borrow from $5,500 to $7,500 annually, based on grade level and need, at low interest from the federal government. For Direct Subsidized loans, you must demonstrate financial need, and the federal government pays the interest while you’re in school.

You are charged interest while in school on Unsubsidized Direct loans and are not required to demonstrate financial need. Independent students have expanded Unsubsidized Direct loan eligibility up to an additional $4,000 to $5,000, depending on your grade level.

Principal and interest payments begin six months after dropping below half time enrollment. There are several payment plans to choose from, including some that are income-driven. Maximum borrowing limits are based on the combined borrowing through Subsidized and Unsubsidized programs. An origination fee will be deducted from each of your loan disbursements.

NOTE: The Perkins Loan program ended effective September 30, 2017. No new awards will be made. Loans awarded and accepted prior to September 30 for the remainder of the 2017-2018 academic year are not affected and will be disbursed as usual.

For questions regarding your Perkins Loan, please contact ECSI at: 888.549.3274 or to our main line at: 651.201.1500.

Send payments to: ECSI / X7 Minnesota State, PO Box 718, Wexford, PA 15090

Parent Loans for Undergraduate Students (PLUS) are available through the Department of Education for parents of dependent students or graduate students (Grad PLUS) who need more assistance than is available through the Federal Direct Loans. Federal PLUS can be used to replace the contribution that is expected from you and your parents. Interest is a fixed rate, set annually by the Department of Education.

Before applying for Federal PLUS, apply for all other types of aid.

Additional PLUS loan information can be found on the Federal Student Aid website.

PLUS Loan application 2022-2023

As you pursue your educational goals, we understand covering the cost of your education can be a major concern. If your financial aid award does not meet the cost of your education, you may want to consider a private loan.

We first encourage you to complete the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal and state aid.

If, after taking advantage of federal loan options, you find you still need additional loans, you can view the list of loan programs used by MSUM students in recent years, their terms and links to applications. Borrowers who have not completed a FAFSA will need to submit a Private Loan Waiver to the Office of Scholarship and Financial Aid.

Loan Deferment, Consolidation & Repayment

Visit for information regarding your federal loans and loan repayment.  Log in and go to "My Aid" section and then "Explore Repayment Options" to view information on your loans, and also to find out who your loan servicer is.

If you are processing a loan deferment, please contact the MSUM Registrar’s Office.

Code of Conduct

Minnesota State University Moorhead values the integrity in the actions of employees. The position an employee holds within the University is evidence of the trust we have in them. Compliance with all applicable laws, regulations and University policies, and performance of duties according to the highest standards of honesty and integrity are expected by all.