The federal government makes Federal Direct Subsidized and Unsubsidized, Perkins 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.
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.
To be eligible for direct loans, you must:
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.
A Federal Perkins Loan is a low interest loan (5 percent) for undergraduate and graduate students with exceptional financial need. Undergraduate students may borrow up to $5,500 annually, with maximum borrowing capped at $27,500.
Perkins Loans are issued by Minnesota State University Moorhead and must be repaid to your loan servicer beginning six or nine months after graduating, leaving school or dropping below half time enrollment. It has a maximum repayment period of 10 years and a minimum monthly payment of $40. A portion of the principal and interest may be cancelled for certain types of public service and payment deferment for service in the Peace Corps, VISTA or Armed Forces.
Perkins funds are limited, so early application of the Free Application for Student Aid (FAFSA) and need are key to receiving a Perkins Loan. No additional paperwork is necessary to apply. You are required to complete the FAFSA every academic year.
If you are awarded Perkins Loans and wish to accept, you will need to complete the Perkins entrance loan counseling and an electronic master promissory note (EMPN). You will receive an email from Heartland/ECSI, the Perkins Loan servicer, with instructions. Immediately complete the EMPN upon receiving the email. Your FSA ID is your signature. To reduce or decline your Perkins Loan, send an email to email@example.com.
Parent Loans for Undergraduate Students (PLUS) are available through the Department of Education for parents of dependent students or graduate students or 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.
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.
For general information, visit studentaid.ed.gov and search under “Repay Your Loans.”
For information about your federal loans, visit nslds.ed.gov and log in using your FSA ID. Your federal loans will be listed and you’ll be able to determine your loan servicer.
If you are processing a loan deferment, please contact the MSUM Registrar’s Office.
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.