The federal government makes Federal Direct Subsidized/Unsubsidized, Perkins and PLUS loans directly available to student through schools across the country. No banks or guarantee agencies are involved. The U.S. Department of Education is the lender.
Private loans are available from private lenders, such as banks, savings and loan associations or credit unions. Depending on the credit strength of the borrower/cosigner, these loans may cost more than federal loans. Private loans may have different eligibility requirements than federal and state loans.
Minnesota State University Moorhead awards a limited number of partial pre-payment of campus housing costs, an advance from anticipated financial aid funds. The advance is for students with greatest demonstrated need where the pre-payment creates a hardship for the family. Selection is based on the Free Application for Federal Student Aid (FAFSA) results and the student's written narrative. To apply, complete the information below and submit to the Office of Scholarship and Financial Aid. The 2015-2016 FAFSA results must be received by MSUM for consideration of the application, and financial aid processed to cover all expected costs. Attach a $50 check (payable to MSUM Housing) to this application and send to the Office of Scholarship and Financial Aid. Submit the housing application directly to the MSUM Housing Office.
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, students must demonstrate financial need and the interest is paid by the Federal government while students are in school. Students 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 $5,000. Under the standard repayment plan, principal and interest begin six months after leaving school with a minimum payment of $50 per month based on the total amount borrowed. Maximum borrowing limits are based on the combined borrowing through Subsidized and Unsubsidized programs. Students pay origination fees on each loan disbursement.
First time borrowers must complete Entrance Loan Counseling and Master Promissory Note for Minnesota State University Moorhead.
Direct Loan Consolidation
Loan Repayment Calculator
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.
A Federal Perkins Loan is a low interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Undergraduates may borrow up to $5,500 annually (maximum borrowing of $27,500). Perkins Loans are issued by Minnesota State University Moorhead and must be repaid to MSUM 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 the Armed Forces.Perkins funds are limited, early application of the Free Application for Federal Student Aid (FAFSA) along with need are the keys to receiving Perkins Loans. No additional paperwork is necessary to apply. Students are required to complete the FAFSA every academic year. Students who are awarded Perkins Loans and wish to accept will need to complete the Perkins entrance loan counseling and a master promissory note (EMPN). You will receive an email from Heartland/ECSI, the Perkins Loan servicer, with instructions or go directly to: https://www.ecsi.net/promx7/. Immediately complete the EMPN upon receipt of the email. Your FAFSA PIN is your e-signature. To reduce or decline your Perkins Loan send an email to firstname.lastname@example.org.
The PLUS is available through the Department of Education for parents or graduate students who do not demonstrate financial need, or who need more assistance than is available in the Federal Direct Loan. Federal PLUS can be used to replace the contribution that is expected from parents and students. The interest rate is 6.84 percent. Before applying for a Federal PLUS, apply for all other types of financial aid. Parents of dependent students may be eligible to borrow a Parent PLUS loan to help cover educational cost.
As you pursue your educational goals, we understand that meeting 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. The FAFSA is available at the Office of Scholarship and Financial Aid located on the MSUM campus, from your high school counselor or online at www.fafsa.gov.If, after taking advantage of Federal Loan options, you find that you still need additional loans, click on the link below to view a list of loan programs used by MSUM students in the past four 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.
Please Note: Private Loan applications should be submitted AFTER receiving and responding to the official award letter. This will limit the number of credit inquiries on your record and allow us to comply with various lender's credit approval policies. Allow a minimum of three weeks from application to disbursement of loan funds.
List of Private Loan ProgramsPrivate Loan Waiver FormPrivate Loan Self-Certification Form
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 of all.
Code of Conduct
If you are a first time borrower of a student loan at Minnesota State University Moorhead, you must complete Entrance Loan Counseling and Master Promissory Note before you can receive your funds (even if you have completed loan counseling at a previous institution). To ensure that you understand the responsibility and the obligation you are assuming when borrowing a student loan, the federal government requires that you participate in loan counseling prior to receiving a Federal Direct Loan. Click on the following link to access entrance loan counseling and master promissory note: www.studentloans.gov.