Electronic signing of the MPN and entrance counseling can both be completed at:
Steps To Receive a Student Loan: You must do these steps in this order.
You must maintain Satisfactory Academic Progress. You must maintain the proper number of minimum hours enrolled. Undergraduates must be at least 6 hours and graduate students at least 4 hours each term.
Parent PLUS loans
You must complete all of the steps above for an additional loan in the parent’s name. This is only needed when the federal loans in the students’ name are not enough. Parents can borrow additional amounts needed in their name using their social security number and PIN, not the students number. Parents must complete the credit check requirement and sign the Master Promissory Note (MPN) at http://www.studentloans.gov
SPSU will receive the credit results and MPN electronically.
Alternative or Private Loans
These loans are only to be used as a last result. These loans are credit based; usually require a co-signer and payment may be required while enrolled. A comparison of lenders frequently used for this last resort loan can be found at:
Sample Private Loan Disclosures
Frequently Asked Questions about Loans are below
What are the benefits in the direct lending program?
The Direct Loan Program offers:
What are the interest rates on federal loans?
The interest rates are variable and established each July 1. You will find out more information about the rates and terms when you complete the entrance counseling requirement at www.studentloans.gov.
What happens to the Stafford loans I borrowed in previous years from commercial lenders? Will they still be deferred now that SPSU is a part of direct lending?
Your Stafford loans from previous years should remain in deferment as long as you are enrolled at least half time for your program of study. You are responsible for notifying your lender if your enrollment status changes.
How will repayment work if I have other loans and Direct loans?
You will have to make separate payments to each lender. If all loans are Stafford loans then you can also opt to consolidate with the Direct Loan Program if you would like to make only one monthly payment. More information on consolidation can be found at www.studentloans.gov
Will there be any additional requirements for me to receive my aid from the Direct Loan Program?
The application process for Direct Loans is the same as the aid process was in previous years. Students must complete the FAFSA. All students offered a loan must log into Banner web and accept the loan offered. ONLY LOANS IN AN ACCEPTED STATUS ARE SENT TO THE GOVERNMENT FOR PROCESSING.
How can I receive Direct Loans?
The application process for Direct Loans is the same as the aid application process was in previous years. US Citizens or permanent residents can apply for Direct Loans by completing the FAFSA. The financial aid office will process your application and send you notification when your financial aid is ready to review and accept. Once you have accepted your awards and completed a new Direct Loan MPN your loans should be set to arrive in a timely manner. However you are encouraged to check your financial aid information through BANNER WEB as well as read any and all letters you receive from the financial aid office.
Where can I find information about who services my other federal loans?
You can find information about the servicers of your other federal loans at www.nslds.ed.gov. You will need your FAFSA pin number to access this information.
How can I consolidate my loans with Direct Lending?
What is Public Loan Forgiveness?
There is a new loan forgiveness program for public service employees. Under this program, the amount forgiven is the remaining outstanding balance of principal and accrued interest on an eligible Direct Loan for a borrower who is not in default and who makes 120 monthly payments on the loan after October 1, 2007. The borrower must be employed full-time in a public service job during the same period in which the qualifying payments are made and at the time that the cancellation is granted. Students can go to http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf for more information about Public Loan Forgiveness.
What are the five repayment options?(click here for a repayment calculator).
If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.
Are there any other requirements?
After completing your education or withdrawing, you must complete exit counseling. This must be done on line at http://www.nslds.ed.gov/nslds_SA
Where can I find the total amount of all of my student loans?
Go to www.nslds.ed.gov.