Notice to Student and Parent Borrowers of Federal Direct Loans - Information about your loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders, and schools determined to be authorized users of the data system.
Types of loans:
William D. Ford Federal Direct Loan Program
- Also known as Federal Direct Stafford Loans.
- Requires repayment over time (with interest) which begins when a student drops below half-time enrollment.
- Two types of Federal Stafford loans are available to students. Neither requires payment while a student is attending the University at least half time but payments made while attending courses can reduce the amount of interest you'll pay when you enter repayment. See the Department of Education's Repayment Calculator to estimate the length of your loan repayment and how much interest you will pay over time.
- Subsidized loans: The Federal government pays the interest on these loans while the student is in school, in grace period, and during any deferment periods. Subsidized loans are only available to undergraduates beginning the Fall semester of 2012.
- Unsubsidized loans: Accrue interest throughout the life of the loan for which the student/borrower is responsible. The interest accumulates and is later added to the principal balance of the loan.
Interest Rates on Federal Direct Loans:
2012-2013 Academic Year:
3.4% fixed - Subsidized loans for Undergraduate students
6.8% fixed – Unsubsidized loans for Undergraduate and Graduate students
Effective July 1, 2012, there is a 1% loan fee on subsidized and unsubsidized Direct Loans and 4% on PLUS deducted by the federal government prior to disbursement. Graduate students are no longer eligible for Subsidized loans beginning Fall semester 2012 due to a regulation change by the federal government.
William D. Ford Federal Direct Loan Program Eligibility Requirements:
- Students must be fully admitted into the University by the Admissions Office.
- Students must be enrolled in a degree-seeking program.
- Students must be registered at least half time: 6 credits for undergraduates and 4 credits for graduates.
- Students must be enrolled in courses required for the degree being sought.
- Students must not have previously reached or exceeded any federal borrowing limits
- Students must not have previous federal student loans in default status
- Students must be making Satisfactory Academic Progress
Additional information about the William D. Ford Federal Direct Loan Program can be found here.
How to apply for the William D. Ford Federal Direct Loan Program:
FAFSAAs with all federal student aid, students must complete the Free Application for Federal Student Aid (FAFSA). Once a FAFSA is completed, the school will receive it within 3-5 business days. The federal school code for Metropolitan State University is: 010374.
For more information about applying for financial aid, please visit the Apply for Aid link on the financial aid website.
Once the FAFSA is received, the student’s financial aid will be processed within 4 to 6 weeks, depending on whether or not the Financial Aid Office will require additional information from the student in order to process. After the determination of eligibility is complete, the student is sent an email explaining how to view the Financial Aid Award Letter which will include student loans. The Financial Aid Award Letter contains instructions on how to accept Federal Direct Loans. All questions about online loan acceptance can be directed to Gateway Student Services Center: 651-793-1300.
Accepting Your Loans:
Loan acceptance or loan requests are done online via student e-services. Students can make an online loan request by following the below instructions:
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Federal Direct PLUS Loans for Parents
Federal Direct PLUS Loan for Parents is a federal loan option for parents of dependent undergraduate students to help pay for school when Federal Direct Loans are not sufficient to cover educational expenses. Independent undergraduates are not eligible for this loan program. It is recommended that a student apply for their annual loan maximum eligibility under the Federal Direct Loan Program before a parent apply for the Federal Direct PLUS Loan for Parents.
The loan is taken in the parent’s name and the parent is responsible for repayment on the loan. The parent will also be required to pass a credit check.
Repayment on the Federal Direct PLUS Loan for Parents begins 60 days after the loan is fully disbursed.
Interest Rates on Federal PLUS Loans for Parents:
2012-2013 Academic Year:
7.90% Fixed
There is a 4% origination fee which is deducted by the federal government prior to disbursement.
Federal Direct PLUS Loan for Parents Eligibility Requirements:
- Students must meet all requirements listed above for the William D. Ford Federal Direct Loan Program eligibility requirements, in addition to:
- Parent must not be in default on a previous federal student loan.
- Parent must pass a credit check.
- Student must be a dependent undergraduate student.
- Student must have already requested their maximum eligibility under the Federal Direct Loan Program.
How to apply for the Federal Direct PLUS Loan for Parents:
- Complete Parent PLUS Loan MPN on StudentLoans.gov
Visit www.StudentLoans.gov and complete the Parent PLUS Loan Master Promissory Note (MPN). The parent will need to sign into the site using their Federal PIN number. This is the same PIN used to sign the student's FAFSA.
- Complete the Federal Direct PLUS Loan Request Form
After completing the MPN, fill out this loan request form in its entirety, print it, and submit it to the Financial Aid Office for processing.
Additional information about the Federal Direct PLUS Loan for Parents can be found here.
Federal Direct PLUS Loans for Graduate Students
Also known and the GradPLUS Loan. This loan program is available to graduate students that need funding beyond their Federal Direct loans. This loan program is not available to undergraduate students. It is recommended that a student applyfor their annual loan maximum eligibility under the Federal Direct Loan Program before applying for a Federal Direct Graduate/Professional PLUS loan. The loan is taken in the student’s name and the student is responsible for repayment on the loan. This loan will also require a credit check.
Repayment on the Federal Direct Graduate/Professional PLUS loan begins 60 days after the loan is fully disbursed.
Interest Rates on Federal Direct GradPLUS Loans:
2012-2013 Academic Year:
7.90% Fixed
There is a 4% origination fee deducted by the federal government prior to loan funds being disbursed to the school.
Federal Direct GradPLUS Loan Eligibility Requirements:
Students must meet all requirements listed above for the William D. Ford Federal Direct Loan Program eligibility requirements, in addition to:
- Student must pass a credit check.
- Student must be a graduate student.
- Student must have already requested their maximum eligibility under the Federal Direct Loan Program.
How to apply for the Federal Direct GradPLUS Loan:
Graduate students may apply for a Direct PLUS Loan by completing the 2 steps below:
- Complete Graduate PLUS Loan MPN on StudentLoans.gov
Visit www.StudentLoans.gov and complete the Graduate PLUS Loan Master Promissory Note (MPN). The student will need to sign in to the site using their Federal PIN number. This is the same PIN used to sign the student's FAFSA.
- Complete the Graduate PLUS Loan Request Form
After completing the MPN, fill out this loan request form in its entirety, print it, and submit it to the Financial Aid Office for processing.
Additional information about the Federal Direct GradPLUS Loan can be found here.
Private Educational Loans
Many banks and credit unions provide educational loan options, commonly referred to as private or alternative loans. These loans may have higher interest rates than federal loans and should only be considered as a borrowing option after all federal loan eligibility has been exhausted.
Click here to review a list of some lenders that offer private loans. Selecting a lender is the sole right of the student.
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