Federal Student Loans
Students qualify for the Direct Student Loan, either Subsidized or Unsubsidized. The amount that students are eligible to borrow is based on the student’s grade level and need. A Federal Direct Loan Request Form is not required. If stated on FAFSA that you are interested in being considered for a student loan you will automatically be awarded if you are eligible.
BEFORE RECEIVING A STUDENT LOAN - YOU MUST SIGN A MASTER PROMISSORY NOTE AND COMPLETE ENTRANCE LOAN COUNSELING, AND ATTEND 6 HOURS IN AN ELIGIBIBLE PROGRAM FOR THE TERM.
- Subsidized Loans does not accrue interest until the student graduates or leaves school or drops below half-time enrollment.
- Unsubsidized Loans does accrue interest while the student is in school, but payment of the interest may be deferred until repayment or the student may choose to pay interest while in school in order to avoid “paying interest on interest”.
Parents of dependent students can borrow a Direct PLUS Loan. PLUS loans are available to parents of dependent undergraduate students enrolled in at least 6 hours in an eligible program. The Parent must apply for the credit based loan by completing the PLUS request process using the parent’s Federal pin number and identifying information. The parent borrower must be listed on the student’s processed FAFSA in order to be eligible to apply for the parent loan.
- You must be the student's biological or adoptive parent (or, the student's stepparent if his/her income is used in the EFC calculation.)
- You must be a U.S. citizen or eligible noncitizen.
- You must have an acceptable credit history. A credit check will be performed during the application process.
Graduate and professional degree students may borrow under the PLUS loan program up to their school's cost of attendance minus any other financial assistance, if eligible. Contact your Financial Aid Counselor for additional information regarding PLUS loans.
BEFORE RECEIVING A PLUS LOAN – THE BORROWER MUST SIGN A MASTER PROMISSORY NOTE. Misrepresentation through fraud and/or forgery are crimes that are punishable by law, and will be reported to the Department of Education for possible prosecution.
Loan proration impacts undergraduate students applying for fall graduation who are receiving federal student loans. When a student will complete their degree in the middle of an academic year, federal student aid regulations require that we prorate the loan based on the student's enrollment level for that final semester. Please note that the actual loan amount may be less if a student has reached their annual or lifetime loan limits prior to fall semester.
Please adhere to the following deadlines:
- Fall Semester – Last day to request or accept a loan including increases is October 12th
- Spring Semester – Last day to request or accept a loan including increases is February 8th
- Summer - Last day to request or accept a loan including increases are June 14 and July 15
- FSAID/FAFSA: You will need a FSAID (fsaid.ed.gov) to complete any online loan applications, counseling, or processing. You may also use your name, social security number and date of birth. Student must have a valid FAFSA on file prior to receiving a loan award.
- CLASS ATTENDANCE: You must be enroll and attend 6 hours per semester to maintain eligibility for a student loan (including private loans). You must also be enroll and attend 6 hours during each summer term to receive a loan. If you drop below 6 hours, your loan will not be authorized to your account and you will be responsible for any balance owed to the University.
- ENTRANCE COUNSELING: MUST BE COMPLETED BY ALL first-time borrowers and transfer students. There is, also, a 30 day delay to first time student borrower accounts. Entrance Counseling informs you about your rights and responsibilities as a Direct Loan Borrower and can be done using the following link: http://www.studentloans.gov.
- ADDITIONAL LOAN COUNSELING: It is highly recommended that students with a grade point average below 2.0 make an appointment with the Office of Financial Aid for additional counseling on the importance of receiving and repaying a loan. Please call 601-877-6190 to schedule an appointment if your GPA is below 2.0.
- MASTER PROMISSORY NOTE (eMPN): MUST BE COMPLETED BY ALL borrowers before loan funds will be disbursed to the Business Office for payment of fees. THIS IS A LOAN AND MUST BE REPAID TO THE LENDER. If you have not signed a Master Promissory Note, please click on the following link: http://www.studentloans.gov.
- EXIT COUNSELING is a process that ALL student loan borrowers must do if they are graduating, transferring, or withdrawing from Alcorn State University. As you near graduation you will receive information on loan repayment from the Direct Loan Servicing Center. You are responsible for timely payment of your loans. Failure to comply with repayment obligations can cause you to have a negative credit rating. Online exit counseling can be done by clicking the following link: http://www.studentloans.gov.
If loan requirements (MPN/Entrance Counseling) are not fulfilled by the close of awarded term, your loan MAY be cancelled. You will be responsible for any balance owed to the university, if applicable. It is your responsibility to regularly monitor your loan status via BANNER Online Services, your loan servicer, and ASU email correspondences. You should receive a disclosure statement from the lender notifying that you are entering into an agreement to repay a Title IV loan based on loans planned to be disbursed to you.
Direct Loan Program
The terms of the sequester increase the loan fees charged to Direct Loan borrowers for Direct Subsidized, Direct Unsubsidized and Direct PLUS loans. For loans where the first disbursement is made on or after July 1, 2016 and before June 30, 2017.
|Interest Rates for Direct Loans First Disbursed on or After July 1, 2017|
|Loan Type||Borrower Type||Loans first disbursed on or after 7/1/17 and before 7/1/18|
|Direct Subsidized Loans||Undergraduate||4.45%|
|Direct Unsubsidized Loans||Undergraduate||4.45%|
|Direct Unsubsidized Loans||Graduate or Professional||6%|
|Direct PLUS Loans||Parents and Graduate or Professional Students||7%|
|Loan Type||First Disbursement Date||Loan Fee|
Direct Subsidized Loans Direct Unsubsidized Loans
|On or after 10/1/16 and before 10/1/17||1.07%|
|On or after 10/1/17 and before 10/1/18||1.07%|
|Direct PLUS Loans||On or after 10/1/16 and before 10/1/17||4.28%|
|On or after 10/1/17 and before 10/1/18||4.26%|
- What is the Master Promissory Note (MPN)?
- What is considered "Adverse Credit"? (Possible Conditions for a Denied Credit Check)
- What are my options when I am declined?
- How much loan can I borrow?
- Does my classification affect my loan amount?
- Do I have to pay these loans back?
The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). There are two types of MPNs in the Direct Loan Program: one for student loans and one for PLUS loans. Monitor your loan MPN expiration date to be sure that it remains current, and does not expire.
If you are a student borrower, you will only sign one valid MPN for ASU student loans. It will be used for all of your Direct Subsidized Loans and Direct Unsubsidized Loans over multiple academic years throughout continuous enrollment. For example, if you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you may be able to borrow under this one MPN for all years.
If you are a parent borrower whose child is attending, you will only sign one valid MPN for accepted parent PLUS loans. It will be used for all of your Direct PLUS Loans for that particular child over multiple academic years throughout your child’s continuous enrollment.
- Bankruptcy (Chapters 7, 11, or 12 within the past 5 years) - Voluntary surrender or Repossession within the last 5 years
- Foreclosure proceedings started or Foreclosure within the last 5 years
- Deed in lieu of foreclosure
- Accounts currently 90 days or more delinquent
Note: Accounts currently reported, as 90 days or more delinquent, which are over 5 years old since the last reported delinquency, are not considered adverse.
- Wage garnishment within the last 5 years
- Defaulted loan that has been claim paid
- Lease or contract on secured real estate or County/State/Federal tax lien, within the past 5 years
You can either obtain an endorser, which is essentially a cosigner, or you may choose to appeal the reason you were declined. You will receive an answer regarding your appeal within 7-10 business days of all required documentation for the appeal being received. For parent loans, the student may be eligible for additional unsubsidized loan in their name should you be declined.
There are regulatory limits which will impact your overall loan award. Public Law 112-141 limits a “new student borrower” to receiving subsidized loans for 150% of the published length of the academic program in which he or she is enrolled. Student aggregate loan limit follows:
- Dependent Undergraduate: $31,000 (max $23,000 subsidized)
- Independent Undergraduate (and dependent undergraduate whose parent is not eligible for the PLUS): $57,500 (max $23,000 subsidized)
- Graduate/Professional Student: $138,500 (max $65,500 subsidized)
There are regulatory limits based on classification which will impact your loan award on a yearly basis. Student annual loan limit follows:
Dependent Undergraduate $5,500 (max $3,500 subsidized)
Independent Undergraduate $9,500 (max $3,500 subsidized)
Dependent Undergraduate $6,500 (max $4,500 subsidized)
Independent Undergraduate $10,500 (max $4,500 subsidized)
3rd year and beyond
Dependent Undergraduate $7,500 (max $5,500 subsidized)
Independent Undergraduate $12,500 (max $5,500 subsidized)
Graduate/Professional up to $20,500 unsubsidized each academic year
Yes. Federal student loans are real loans that must be repaid, even if your financial circumstances become difficult. Your student loans cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education (unless you couldn’t complete your education because your school closed). For further general information regarding repayment, contact your loan servicer or estimate repayment via https://studentaid.ed.gov/repay-loans/understand/p...