Loans

WILLIAM D. FORD DIRECT LOANS

Mississippi Valley State University participates only in the William D. Ford Direct Loan Program. MVSU no longer participates in the Federal Perkins Loan Program.  Student and parent borrowers receive funding for their federal student loans directly from the U.S. Department of Education rather than from private banks and other lending institutions.

  • The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:    
    • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. 
    • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
    • Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
    • Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

 To sign your Direct Loan Master Promissory Note and complete Entrance Counseling, go to www.studentloans.gov. You can accept your student loan award(s) via your BANNER Web account at http://sutton2.mvsu.edu.

Additional Information

Low interest loans through this program are guaranteed and provided by the federal government. These loans are repaid to direct loan servicing. Repayment is between 10 and 30 years depending on the amount borrowed and the type of repayment plan selected.

Federal Subsidized Stafford Loan

Direct Subsidized Loans are available to undergraduate students with financial need.  This is a low interest loan guaranteed by the federal government that must be repaid regardless if you received a degree.

  • The amount you can borrow is determined by the annual amount you are eligible to receive based on your classification.
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan
    • while you’re in school at least half-time,
    • for the first six months after you leave school (referred to as a grace period*) before repayment begins, and
    • during a period of deferment (a postponement of loan payments).
    • Repayment is between 10 and 30 years depending on the amount borrowed and the chosen repayment plan. 

Federal Unsubsidized Stafford Loan

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.

  • The amount you can borrow is determined by the cost of attendance and other financial aid received.
  • The borrower(the student) is responsible for paying the accrued interest on a Direct Unsubsidized Loan. 
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, interest will accrue (accumulate) and be capitalized (the interest is added to the principal amount of amount borrowed).

Below is a chart showing the loan limits for students (dependent, independent and graduate)

Federal Stafford Loan Limits - Dependent Students
Grade Level Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized Aggregate Stafford Loan Limit Graduate & Professional Degree Student
Freshman $5,500
(Maximum $3,500 Subsidized)
$31,000
(Maximum $23,000 Subsidized)
$20,500 - No more than $8,500 of this amount may be in subsidized loans.
Sophomore $6,500
(Maximum $4,500 Subsidized)
$31,000
(Maximum $23,000 Subsidized)
$20,500 - No more than $8,500 of this amount may be in subsidized loans.
Junior $7,500
(Maximum $5,500 Subsidized)
$31,000
(Maximum $23,000 Subsidized)
$20,500 - No more than $8,500 of this amount may be in subsidized loans.
Senior $7,500
(Maximum $5,500 Subsidized)
$31,000
(Maximum $23,000 Subsidized)
$138,500 - No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received for undergraduate study.

Note: Please note that a dependent student may be eligible for some additional unsubsidized loans if the parent is denied the Parent PLUS Loan.

Federal Stafford Loan Limits - Independent Students
Grade Level Annual Stafford Loan Limit for Combined Subsidized & Unsubsidized Aggregate Stafford Loan Limit Graduate & Professional Degree Student
Freshman $9,500
(Maximum $3,500 Subsidized)
$57,500
(Maximum $23,000 Subsidized)
$20,500- No more than $8,500 of this amount may be in subsidized loans.
Sophomore $10,500
(Maximum $4,500 Subsidized)
$57,500
(Maximum $23,000 Subsidized)
$20,500- No more than $8,500 of this amount may be in subsidized loans.
Junior $12,500
(Maximum $5,500 Subsidized)
$57,500
(Maximum $23,000 Subsidized)
$20,500- No more than $8,500 of this amount may be in subsidized loans.
Senior $12,500
(Maximum $5,500 Subsidized)
$57,500
(Maximum $23,000 Subsidized)
$138,500 - No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received for undergraduate study.

Federal Direct Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1: Complete your Direct Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action.

Step 2: Complete Entrance Counseling at https://studentloans.gov/myDirectLoan/index.action.

Step 3: (Only for Students who have Graduated or Withdrawn from School) Complete Exit Counseling at https://studentloans.gov/myDirectLoan/index.action if you withdraw, graduate, or stop going to school and returning to Mississippi Valley State University.

Mississippi Valley State University LOAN CERTIFICATION POLICY

Minimum Requirements for applying and maintaining eligibility for a student loan:

  • Be enrolled at least half-time in a degree seeking program of study
  • Successfully complete at least 6 hours for each term of loan disbursement 
  • Meet the current Mississippi Valley State University Satisfactory Academic Progress Policy (unless waived as a result of an appeal for extenuating circumstances)

Federal Direct PLUS Loan

This is a loan for parents of dependent students. The maximum loan amount is the difference between the student’s cost of attendance and other aid the student receives. PLUS loans are the financial responsibility of the parent, not the student. Interest begins to accrue on the day of the first disbursement and repayment begins within 60 days after the last disbursement on the loan.

Federal Direct PLUS Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1: Complete the Parent PLUS Loan Application Form and submit it to the office of financial aid.

Step 2: Complete the Parent PLUS Loan Application Form through Direct Loans by visiting: https://studentloans.gov/myDirectLoan/index.action

Step 3: The Students parent must complete his/her Direct PLUS Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action

Federal Direct GRAD PLUS Loan

This is a supplemental loan made available to graduate or professional students who need to borrow more than the maximum subsidized and unsubsidized loan amounts to meet educational costs that are not covered by other financial aid.  Students interested in this loan must complete the FAFSA and must be enrolled in at least half time in a graduate or professional program. The interest rate for the PLUS loan is fixed at 7.9% and a credit check is required.  There is no grace period for the Graduate PLUS loan.

Federal Direct GRAD PLUS Loan Application Process

In order for your loan application to be processed you must have received counseling from the Office of Financial Aid and completed the following steps:

Step 1: Complete the GRAD PLUS Loan Application Form and submit it to the office of financial aid.

Step 2:

Complete the GRAD PLUS Loan Application Form through Direct Loans by visiting: https://studentloans.gov/myDirectLoan/index.action

Step 3: The students must complete his/her Direct GRAD PLUS Loan Master Promissory Note (MPN) at https://studentloans.gov/myDirectLoan/index.action 

Entrance Counseling

U.S. Department of Education regulations require all first-time borrowers of Federal Stafford (Subsidized and Unsubsidized), Parent PLUS and /or GRAD PLUS Loans to complete an entrance interview. The Office of Financial Aid cannot process a student’s loan until counseling has been completed. Access the entrance counseling online at­­­­­­­­­­­­­­­­­­ https: https://studentloans.gov/myDirectLoan/index.action

Exit Counseling

U.S. Department of Education regulations require Federal Stafford (Subsidized and Unsubsidized), Parent PLUS and /or GRAD PLUS Loans recipients to complete an exit interview when graduating from or when leaving Mississippi Valley State University. Access the exit counseling online at https: https://studentloans.gov/myDirectLoan/index.action

NSLDS for Students

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for student aid. It receives data from schools, agencies that guaranty loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. NSLDS provides a centralized, integrated view of Title IV loans and Pell grants that are traced through their entire cycle: from aid approval through closure. Access this information online at https://www.nslds.ed.gov/nslds_FAP/secure/logon.jsp.

 Private/Alternative Loans

Private/ Alternative Loans are available to students and our institution does certify these type of loans. However, the institution will only certify these type of loans up to need or cost of attendance if eligible. However, the institution leaves the decision up to the student and/or parents to choose his/her own lender to assist them with funding their education.