Mississippi Valley State University

Loans

Loan Counseling:     

Student loans, unlike grants and work-study, is borrowed money that must be repaid, with interest.  Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years.  Stafford Loans are for eligible degree-seeking undergraduate, graduate and professional degree students. 

Mississippi Valley State University participates in the Federal Family Education Loan (FFEL) Program.  Loans made through this program are referred to as Federal Stafford Loans.  FFEL Loans include the Subsidized and Unsubsidized Stafford Loans, the Parent Plus (PLUS) Loan and the Graduate PLUS Loan.  You repay these loans to the bank or private lender that made you the loan. 

There are two types of Federal Stafford Loans:  

A Federal Subsidized Loan is available to eligible degree-seeking undergraduate and graduate students who demonstrate financial need.  The U.S. Department of Education pays the interest on these loans  

1.  While you’re in school at least half-time

2.  For the first six months after you leave school (referred to as a grace period)

3.  During a period of deferment (a postponement of loan payments)  

A Federal Unsubsidized Loan is available to eligible degree-seeking undergraduate and graduate students.  An unsubsidized loan does not require students to demonstrate financial need.  The U.S. Department of Education does not pay interest on unsubsidized lonas.  You’re responsible for paying the interest that accrues on the loan from the time the loan is disbursed until its paid in full.  You can pay the interest while you’re in school or during a period of deferment or forebearance.  You can allow the interest to accrue (accumulate) and have the interest added to the principal amount of your loan.  This is called capitalization.  Capitalization will increase the total amount that you have to repay. 

 MAXIMUM ANNUAL LOAN LIMITS CHART

Subsidized and Unsubsidized Stafford Loans

AGGREGATE LOAN LIMITS

Subsidized and Unsubsidized Stafford Loans

* The graduate debt limit includes Stafford loans received for undergraduate study.

How do I apply for a Federal Family Education Stafford Subsidized or Unsubsidized Loan?

You must complete the Free Application for Federal Student Aid (FAFSA) before a stafford loan can be certified by the school.  Once a valid Student Aid Report (SAR) is received by the school, you are awarded based on your eligibility and classification.  Your awarded loan is certified and electronically sent to Salliemae Servicing for guarantee by the federal government via United Student Aid Funds (USA Funds). 

Do I have to complete an application to receive my student loan?

YES.  A Master Promissory Note (MPN) is generated by the loan servicer (Salliemae) with your personal information, the amount certified by the school, and the name of the lender of your choice.  You will sign an initial MPN once, this MPN is good for 10 years.  The school will electronically submit a loan record on your behalf each year that you request a stafford loan.  To sign your MPN electronically, you must log on https://opennet.salliemae.com.  If you want to receive a paper application you can call Salliemae Servicing at 1-888-272-5543. 

Do I have to complete anything else?

YES!  All freshmen and first-time borrowers at MVSU must complete Entrance Loan Counseling before your loan proceeds are sent to the school.  You will complete entrance counseling before you sign your promissory at opennet.salliemae.com or you can stop by the financial aid office. 

The law now allows graduate and professional degree students to borrow from the PLUS program.  The terms and conditions applicable to parent PLUS Loans (made to parents of dependent students) also apply to PLUS Loans made to graduate and professional degree students. 

The two Stafford PLUS Loan programs are:

A Federal Parent PLUS Loan is available to parents of dependent students.  Although not a requirement if the student will not be receiving any other federal student aid, parents are encouraged to have their dependent children submit a FAFSA so their children can receive the maximum student financial aid they’re eligible for.

Parent PLUS applicants must meet the general eligibility requirements for federal student financial aid.  If a parent is borrowing on behalf of a dependent undergraduate student, the student must also meet the general eligibility requirements.

-         Be a U.S. Citizen or eligible noncitizen

-         Not be in default on a federal student loan

-         Not owe a refund on a federal education grant

Parent PLUS applicants must not have an adverse credit history. (A credit check will be conducted.) A PLUS Loan applicant who has an adverse credit history still may be able to receive a loan by documenting existing extenuating circumstances or by obtaining an endorser who does not have an adverse crecit history.  An endorser is someone who agrees to repay the loan if the borrower fails to do so.

The maximum PLUS Loan amount that a parent can borrow is the student’s cost of attendance minus any other financial aid the student receives. 

Parents considering borrowing under the PLUS Loan program should contact the school for additional information. 

A Federal Graduate PLUS Loan is available to eligible degree-seeking graduate students.  Graduate student applicants must meet the general eligibility requirements, be enrolled at least half-time and cannot have an adverse credit history. Students must complete the FAFSA application prior to applying and have received their maximum annual loan limit in subsidized and unsubsidized loans before the Grad PLUS Loan will be certified.

The maximum Grad PLUS Loan amount that a graduate student can borrow is the student’s cost of attendance minus any other financial aid the student receives. 

Your Rights and Responsibilities as a Student Loan Borrower

As a federal loan borrower you have many rights. By borrowing money and agreeing to pay it back you are also bound by many important responsibilities during the life of the loan.

Your Rights

Before MVSU can make your first loan disbursement, you have the right to receive the following information about your federal student loan from your school, lender, and/or the Loan Servicing Center:

• The full amount of the loan and the interest rate;
• The date youmust start repayment;
• A Complete list of any charges you must pay (loan fees) and information on how those charges are collected;
• Informtion about the yearly and total amounts you can borrow;
• An explanation of default and its consequences; and
• An explanation of available options for consolidating your loans and a statement that you can repay your loan(s) without penalty at any time.

Your Responsibilities

• To receive entrance counseling before being given the first loan disbursement, and receive exit counseling before leaving school;
• To understant that by signing the promissory note, the student is agreeing to repay the loan according to the terms of the note;
• To make payments on the student loan even if the student does not receive a bill or repayment notice;
• To make payments on the student loan even after applying for a deferment or forbearance, until notificaiton that the request has been granted; and
• To notify the appropriate representative (institution, agency, or lender) that manages the student loan when the student graduates, withdraws from school, or drops below half-time status; changes his/her name, address, social security number, or transfers to another institution.

Entrance Counseling

Loan Entrance Counseling is a one time requirement for all first time borrowers of Federal Stafford and Federal Unsubsidized Stafford Loans.  Student Loan funds can not be released until this requirement is met.  Currently entrance counseling is performed in the Financial Aid Office. 

Exit Counseling

Loan Exit Counseling is required if you:

• Withdraw from school
• Drop below half-time status
• Graduate

Currently exit loan counseling  is performed in the Financial Aid Office.