Loans

Federal student loans can be a critical part of your education financing plan. They are a great resource when used conservatively. We encourage you to carefully consider whether or not you really need to borrow, and if so, borrowing as little as necessary.

Keep track of how much you owe at the National Student Loan Data System (NSLDS).

Subsidized Loan is a need-based loan for which the federal government pays the interest on the loan while the student is enrolled in school, only available to undergraduate students.

  • Must file a FAFSA.
  • Need to be enrolled at least half-time.
  • Interest rates can change annually.
  • Repayment begins six months after you graduate, drop below half-time enrollment or withdraw.

Keep in mind, there are limits on the amount of subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual limits) and the total amounts that you may borrower for undergraduate and graduate programs (aggregate loan limits). For more information on Federal Loan Limits visit StudentLoans.gov.

For Federal Subsidized Loan details and updates, visit StudentAid.gov/sub-unsub.

Unsubsidized Loan is a non-need based loan, the federal government does not pay the interest while the student is in school. It is the student's responsibility to pay accrued interest while in school or choose to capitalize the interest. The MSU Financial Aid Office encourages borrowers to make payments on accruing interest while they are in school to keep total debt as low as possible. Unsubsidized Loans are available to undergraduate and graduate students.

  • Must file a FAFSA.
  • Undergraduate students - need to be enrolled at least half-time.
  • Graduate Students - need to be enrolled in at least five credits or more.
  • Interest rates can change annually.
  • Repayment begins six months after you graduate, drop below half-time enrollment or withdraw.

Keep in mind, there are limits on the amount of subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual limits) and the total amounts that you may borrower for undergraduate and graduate programs (aggregate loan limits). For more information on Federal Loan Limits visit StudentLoans.gov.

For Federal Unsubsidized Loan details and updates, visit StudentAid.gov/sub-unsub.

Parent PLUS Loans are available to parents of dependent undergraduates students, the parent is the borrower of the loan.

  • Student must file a FAFSA.
  • Maximum amount is the cost of attendance minus any other financial aid received.
  • Student must be enrolled half-time or greater.
  • Parents will need to apply at StudentLoans.gov.
  • Parents need to complete the PLUS Master Promissory Note at StudentLoans.gov.
    • Once logged in click Complete Loan Agreement (Master Promissory Note) > Choose PLUS MPN for Parents
  • Repayment begins once the loan has fully disbursed.
    • The borrower is responsible for interest that accrues during the life of the loan. The MSU Financial Aid Office encourages borrowers to make payments on accruing interest while they are in school to keep total debt as low as possible.

If a parent borrower is unable to obtain a PLUS loan, due to adverse credit history, the undergraduate dependent student may be eligible for additional unsubsidized loans. The student should contact the MSU Financial Aid Office for more information.

For Federal Parent PLUS Loan details and updates, visit StudentAid.gov/plus.

Graduate PLUS Loans are available to graduate and professional students enrolled at least half-time or greater.

  • Student must file a FAFSA.
  • Maximum amount is the cost of attendance minus any other financial aid received.
  • Apply at StudentLoans.gov.
  • Complete the PLUS Master Promissory Note at StudentLoans.gov.
    • Once logged in click Complete Loan Agreement (Master Promissory Note) > Choose PLUS MPN for Graduate/Professional Students
  • Graduate and professional students that borrow a PLUS Loan receive an automatic deferment while in school.
    • The borrower is responsible for interest that accrues during the life of the loan. The MSU Financial Aid Office encourages borrowers to make payments on accruing interest while they are in school to keep total debt as low as possible.

For Federal Graduate and Professional PLUS Loan details and updates, visit StudentAid.gov/plus.

Federal Nursing Loan is a low interest 5% loan awarded to students with financial need who are enrolled and accepted into the nursing program.

  • Must file a FAFSA.
  • Priority is given to students whose FAFSA is completed by April 15, Minot State's priority funding deadline.
  • Need to be enrolled at least half-time.
  • Repayment begins nine months after you graduate, drop below half-time or withdraw from Minot State.
    • If you withdraw or are removed from the Nursing program repayment begins immediately. 
    • Interest is computed on the unpaid principal balance and begins to accrue upon expiration of the grace period unless a borrower is eligible for deferment status. The grace period immediately follows completion or termination as a full-time student or half-time student for loans. During the grace period, which is nine consecutive months long, repayment of principal is not required and interest does not accrue. The grace period begins on the first day of the month nearest to the date the borrower is no longer a full-time or half-time student.

In 2009, the Federal Reserve approved amendments to Regulation Z (Truth in Lending) that revised the disclosure requirements for private education loans, which includes the Federal Nursing Loan.

Nursing loan borrowers are required to complete a Master Promissory Note (MPN) and other Truth in Lending documents including Self-Certification and Loan Entrance Counseling. These are required each year a student borrows a Nursing Loan.

Once a borrower has accepted a Federal Nursing Loan, you will receive an email from Heartland Educational Computer Systems, Inc (ECSI) with instructions on how to complete the MPN and other required documents. Heartland ECSI contracts with the Student Loan Service Center(SLSC) located in Fargo, ND to provide services for the Federal Nursing Loan borrowers in the North Dakota University System such as billing, payments and deferments.

Regulation Z (Truth in Lending) requires a three-day waiting period after the required documents are signed before the loan can be disbursed.

IMPORTANT: Under federal law, the authority for schools to make new Perkins Loans ended on September 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans.

Who is the lender?
Minot State University is the lender and the loan is made with government funds.  Perkins Loans processed by Minot State University are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

What is the interest rate?
The interest rate is fixed at 5%.

How and when do I pay this loan back?
You have nine months after you graduate, leave school, or drop below half-time (six credits) before you must begin repayment. Perkins Loans offered by MSU are serviced by the Student Loan Service Center (SLSC) in Fargo, ND.  The SLSC has contracted with Heartland Educational Computer Systems, Inc (ECSI) for additional services such as billing, payments, deferments and cancellations for the Perkins Loan.

Are there cancellation provisions for the Perkins Loan?
Yes.  Borrowers who undertake certain public, military, medical, or teaching service employment may be eligible to have all or a part of their loans canceled.  Contact the Student Loan Service Center for information on cancellation provisions.

Alternative loans are non-federal loans offered by lending institutions to assist students in meeting their educational expenses.  They are also referred to as private education loans.  Interest rates and fees are generally determined by the credit-worthiness of the borrower and/or co-signer.

The MSU Financial Aid Office encourages students and families to first complete the FAFSA to determine federal aid eligibility first. Visit StudentAid.gov to learn the differences between federal vs. private student loans.

FASTChoice
FASTChoice is a comparison tool, customized for Minot State University, which was designed to assist you in making the education loan choice that is best for you. FASTChoice is not a lender. The lender comparison tool includes the most common alternative loans used by Minot State University students over the last three years. Keep in mind that you may select any lender of your choice, even if they do not appear in the comparison tool.

logo_fast.png

The MSU Financial Aid Office and staff do not endorse or accept any incentives, financial or otherwise from any lender. Lender information is provided as a courtesy and in no way should it be interpreted as a requirement to use one of the lenders listed. MSU will process loans from any lender that participates in any educational loan program.

Private Loan Self-Certification Form
Truth in Lending Act
Code of Conduct Policy

 

 

Master Promissory Note (MPN)
Legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan. Complete the MPN for the loan(s) you've accepted. Required for all first-time borrowers.

Entrance Loan Counseling
The purpose of entrance counseling is to help you understand what it means to take out a federal student loan and answer any questions you may have concerning your repayment obligations. Complete loan counseling for the loan(s) you've accepted. Required for all first-time borrowers.

Exit Loan Counseling
If you received loans while attending Minot State through the Federal Direct, Federal Nursing, and/or Federal Perkins Loan Programs, you are required to complete exit loan counseling. This must be done upon graduation, dropping below half-time enrollment, or withdrawing from Minot State. The purpose of exit counseling is to provide you with important information you'll need as you prepare to repay your federal student loan(s). You'll learn how to understand and repay your loans, how to avoid default, and how to make your finances a priority. Complete the loan counseling for the loan(s) you've borrowed.

Minot State reports all Federal Direct Loans to the National Student Loan Data System (NSLDS). Post-disbursement information can be found at NSLDS.