Loans

Loans are a form of financial assistance that must be repaid. Students and families should borrow responsibly and only borrow the amount needed to cover educational expenses.

Loan eligibility is determined by several factors, including the student’s enrollment status, grade level or program of study, applicable annual and aggregate loan limits, Cost of Attendance (COA), financial need, when applicable, and other financial assistance received. The total amount of financial aid and educational resources generally may not exceed the student’s Cost of Attendance.

Students interested in federal financial aid must complete the Free Application for Federal Student Aid (FAFSA) each year at StudentAid.gov. Additional information regarding federal student loans, borrowing requirements, repayment, and loan counseling is also available at StudentAid.gov.

The William D. Ford Federal Direct Loan Program provides eligible students with loans funded by the U.S. Department of Education.

Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need. The federal government generally pays the interest on a Direct Subsidized Loan while the student is enrolled at least half-time and during other qualifying periods.

Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students. Financial need is not required. Interest begins accruing when the loan is disbursed, and the borrower is responsible for the interest that accrues on the loan.

Students must generally be enrolled at least half-time in an eligible degree or certificate program to receive a Direct Loan. Alcorn State University will determine the student’s eligibility and maximum loan amount based on federal regulations and institutional packaging procedures.

Undergraduate Annual Loan Limits

*The independent undergraduate limits also apply in certain circumstances to dependent undergraduate students whose parents are unable to obtain a Parent PLUS Loan. The undergraduate annual and aggregate limits did not change under the federal loan provisions effective July 1, 2026.

Effective July 1, 2026, federal loan limits and loan availability changed for graduate and professional students who are not eligible for the federal interim exception.

For students subject to the new rules:

• Graduate students may receive up to $20,500 per year in Direct Unsubsidized Loans, with a $100,000 graduate aggregate limit.
• Professional students, as defined by federal regulations, may receive up to $50,000 per year in Direct Unsubsidized Loans, with a $200,000 professional aggregate limit.
• Graduate PLUS Loans are no longer available to new graduate or professional borrowers beginning July 1, 2026, except for borrowers who qualify for the federal interim exception.

Federal law also establishes a $257,500 lifetime maximum aggregate Title IV loan limit for student borrowers subject to the new rules. The lifetime limit generally includes qualifying federal loans borrowed for undergraduate, graduate, and professional study. Parent PLUS Loans borrowed by a parent on behalf of a dependent student are not included in the student’s lifetime maximum.

Interim Exception for Certain Continuing Graduate and Professional Students

A limited federal exception may allow certain continuing graduate and professional students to remain subject to the loan rules that applied before July 1, 2026.

Generally, the student must have been enrolled in the applicable program of study as of June 30, 2026, and must have received a Direct Loan for that program before July 1, 2026. Students who qualify may continue to receive Grad PLUS Loans and the prior loan limits during their federally defined expected time to credential, generally for the lesser of three academic years or the remaining published length of the program.

Eligibility for this exception is determined under federal regulations and U.S. Department of Education processing requirements. Students should contact the Office of Financial Aid if they have questions regarding their eligibility.

Direct PLUS Loans are available to eligible parents of dependent undergraduate students.

The borrower generally must be the student’s:

• biological parent;
• adoptive parent; or
• stepparent, when applicable under federal financial aid requirements.

The parent borrower must meet federal eligibility requirements, and the student must be enrolled at least half-time in an eligible program. Parent PLUS Loans are subject to a federal credit review.

Beginning July 1, 2026, parents subject to the new federal loan limits may borrow up to $20,000 per academic year per dependent undergraduate student, not to exceed the student’s Cost of Attendance minus other financial assistance. The aggregate Parent PLUS Loan limit is $65,000 per dependent student.

Certain parents of continuing students may qualify for the federal interim exception if the student was enrolled in the applicable program by June 30, 2026, and the student received a Direct Loan for that program before July 1, 2026. During the applicable exception period, eligible parents may continue to borrow under the previous Parent PLUS Loan limits, generally up to the student’s Cost of Attendance minus other financial assistance.

Parent PLUS Loan applications and applicable Master Promissory Notes are completed through StudentAid.gov using the parent’s own StudentAid.gov account.

Beginning with loan periods subject to the federal rules effective July 1, 2026, annual Direct Loan limits are reduced for students enrolled less than full-time. The reduction is based on the student’s enrollment intensity or enrollment status in accordance with the schedule and procedures established by the U.S. Department of Education.

As a result, a student enrolled at least half-time but less than full-time may remain eligible for a Direct Loan, but the student’s maximum annual loan amount may be lower than the full-time annual loan limit.

LOAN PRORATION FOR STUDENTS COMPLETING A PROGRAM

Federal regulations may also require the annual Direct Loan limit to be prorated when an undergraduate student’s remaining period of study is shorter than a full academic year, including certain students completing their degree during the academic year.

The amount a student is eligible to receive may therefore be less than the standard annual loan limit. Eligibility will also be affected by prior borrowing, remaining annual eligibility, aggregate loan limits, enrollment, Cost of Attendance, and other financial assistance.

Before federal Direct Loan funds can be disbursed, applicable requirements must be completed.

FAFSA

Students must have a valid FAFSA on file and meet all federal and institutional eligibility requirements. Students and parent borrowers use their own StudentAid.gov account to complete applicable federal loan requirements.

Entrance Counseling

First-time Direct Subsidized and Direct Unsubsidized Loan borrowers must complete required Entrance Counseling before receiving loan funds. Entrance Counseling provides information about borrowing, interest, repayment obligations, borrower rights and responsibilities, and the consequences of failing to repay a federal student loan. Entrance Counseling may be completed at StudentAid.gov.

Master Promissory Note

Borrowers must complete the applicable Master Promissory Note (MPN) before federal loan funds may be disbursed. The MPN is a legally binding agreement under which the borrower promises to repay the loan, accrued interest, and applicable fees according to the terms of the loan. The MPN may be completed at StudentAid.gov

Enrollment and Attendance

Students must be enrolled at least half-time in an eligible program to receive Direct Subsidized or Direct Unsubsidized Loan funds.

For undergraduate students, half-time enrollment is 6 credit hours during a standard semester.  Loan eligibility may be reduced or canceled if a student:

• fails to begin attendance;
• withdraws from courses;
• drops below half-time enrollment before a required loan disbursement; or
• otherwise becomes ineligible for federal student aid.

Beginning July 1, 2026, students enrolled at least half-time but less than full-time may also be subject to reduced annual federal loan limits.

Exit Counseling

Federal student loan borrowers must complete Exit Counseling when they graduate, withdraw from the University, or drop below half-time enrollment.

Exit Counseling provides information concerning:

• loan balances;
• repayment obligations;
• repayment plans;
• loan servicers;
• interest;
• deferment and forbearance;
• delinquency and default; and
• borrower rights and responsibilities.

Exit Counseling may be completed at StudentAid.gov.

Borrowers are responsible for maintaining current contact information with their federal loan servicer and making required payments after entering repayment.

Federal Direct Loan interest rates are established annually. The rate applicable to a loan is based on the loan type and the date of the loan’s first disbursement. Once established, the rate is fixed for the life of that loan.  Interest rates for future academic years may change. Students and parents should review the current rates at StudentAid.gov before borrowing.

Federal Direct Loans are subject to an origination fee that is deducted proportionately from each loan disbursement. Therefore, the amount credited to the student’s account will be less than the gross amount borrowed. The borrower remains responsible for repaying the full amount borrowed.

For loans with a first disbursement on or after October 1, 2020, and before October 1, 2027, current federal loan fees are:

Federal loan fees are subject to change. Borrowers should review StudentAid.gov for current information.

Private or alternative education loans are nonfederal loans offered by banks, credit unions, state agencies, and other private lenders. These loans may be used to help pay educational expenses when federal, state, institutional, and other resources do not fully cover a student’s educational costs.

Students are strongly encouraged to complete the FAFSA and consider available federal student aid options before applying for a private loan. Federal student loans generally provide borrower protections, repayment options, and benefits that may not be available through private lenders.

Private loan eligibility, interest rates, fees, repayment terms, credit requirements, co-signer requirements, and borrower benefits are established by the individual lender. Approval is generally credit-based.

Alcorn State University does not maintain or endorse a preferred lender list. Students and families have the right to select the private educational loan lender of their choice. The University will process an eligible private education loan from any lender selected by the borrower, consistent with federal regulations and University procedures.

The amount certified by the University cannot exceed the student’s Cost of Attendance minus other financial assistance and educational resources, as applicable.

Private/Alternative Loan Information:

Students should carefully compare lenders and review interest rates, fees, repayment provisions, co-signer requirements, deferment options, and other loan terms before borrowing. Click on the link below to view lenders:

https://www.elmselect.com/link/query?schoolId=1315

Students who wish to accept, reduce, increase, or request eligible loan funds should complete all requirements by the published deadline for the applicable semester.

Current Institutional Deadlines:

• Fall Semester: November 1
• Spring Semester: March 1
• Summer Semester: July 1

Requests submitted near the end of a semester are subject to federal processing and disbursement requirements and may not be processed if sufficient time does not remain to complete all applicable requirements.

Borrowing a loan creates a legal obligation to repay the amount borrowed plus applicable interest and fees. Students should regularly review:

• their financial aid awards through Banner Online Services;
• their Alcorn State University email;
• their federal loan information through StudentAid.gov; and
• communications from their federal loan servicer.

If required loan documents, including Entrance Counseling or the Master Promissory Note, are not completed within applicable federal and institutional processing timeframes, the loan may be canceled. The student will be responsible for any balance owed to Alcorn State University.

Providing false information, altering documents, forgery, identity fraud, or other misrepresentation in connection with federal student aid may result in referral to the appropriate authorities.

Students should borrow only what they need and understand their repayment responsibilities before accepting any loan.

A school’s Cohort Default Rate generally measures the percentage of certain federal student loan borrowers who enter repayment during a specified federal fiscal year and subsequently default within the federal monitoring period.

Alcorn State University’s federal school code/OPE information may be used to locate the University’s official Cohort Default Rate through the U.S. Department of Education’s Federal Student Aid resources.

Alcorn State University OPEID: 002396