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Loans

Loans are financial assistance that must be repaid.  Due to legislative changes to the Federal Loan program in March 2010, Jackson State University now participates in the Federal Direct Loan Program.  The Federal Direct Loan program consists of the Federal Direct Stafford Loans, the Federal Direct PLUS Loan and the Federal Direct GradPlus Loan.

Types of Loans:

Federal Direct Stafford Student Loans (Subsidized and Unsubsidized)

Steps To Apply:

Once the student completes the Free Application for Federal Student Aid (FAFSA) process, a Federal Direct Subsidized and/or Unsubsidized Loan is automatically included on the student’s award in PAWS if he or she has sufficient Remaining Need after all other non-loan aid for which the student qualifies has been awarded.  If the student accepts the Subsidized and/or Unsubsidized Loan(s) in PAWS, the student must then Log In to StudentLoans.gov using his or her Federal Student Aid (FSA) ID and complete the following before he or she can receive the first loan disbursement:

  1. Entrance Counseling is usually required only once while enrolled at JSU.  If you have not previously completed Entrance Counseling for a Subsidized/Unsubsidized Loan at JSU, see Steps to Completing Entrance Counseling at StudentLoan.gov.
  2. A Master Promissory Note (MPN) is usually required only once while enrolled at JSU.  The MPN is a legal document whereby students promise to repay their loans and any accrued interest and fees to the U.S. Department of Education.  If you have not previously completed the MPN for a Subsidized/Unsubsidized Loan at JSU, or it has been more than 10 years since you previously completed the MPN, see Steps to Complete a Direct Loan Master Promissory Note (MPN) at StudentLoan.gov.

 

Federal Direct Plus Loan (for Parents of Dependent Undergraduate Students)

Once the dependent student completes the Free Application for Federal Student Aid (FAFSA) process, the parent may apply for a Federal Direct Parent PLUS Loan. If the loan is approved and borrower submits Direct Plus Loan Status Retrieval Form with appropriate ID the Direct Plus Loan will be included on the student’s award in PAWS if he or she has Remaining Need after all other aid (including Subsidized and Unsubsidized Loans) for which the student qualifies has been awarded.

To apply for the Direct Plus Loan, the parent must: Login to StudentLoans.gov using his or her Federal Student Aid (FSA) ID, (formally the PIN) and under “Parent Borrowers”, complete the following application requirements:

  1. Request a Direct PLUS Loan on StudentLoans.gov. This must be completed by the borrowing parent every award year if he or she wishes to receive the Parent PLUS Loan so the Department of Education can perform the credit check.  See Steps to Request a Federal Direct Parent Plus Loan at StudentLoan.gov.
  2. A Master Promissory Note (MPN) for a Parent PLUS Loan is usually required only once while the student is enrolled at JSU unless the prior MPN required an endorser. The MPN is a legal document whereby the parent promises to repay the loan and any accrued interest and fees to the U.S. Department of Education.  If the borrowing parent has not previously completed a Parent PLUS MPN for this student or the prior MPN required an endorser, then the parent must complete a Master Promissory Note (MPN).  See Steps to Complete a Federal Direct Loan Master Promissory Note (MPN) at StudentLoan.gov.
  3. PLUS Counseling is only required when the borrowing parent has an adverse credit history, but qualifies for the PLUS Loan by documenting extenuating circumstances or obtaining an endorser.  The U.S. Department of Education will inform the parent if he or she must complete this counseling as part of the application process.

 

Federal Direct Graduate Plus Loan (for Graduate and Professional Students)

Steps To Apply:

 

Once the graduate or professional student completes the Free Application for Federal Student Aid (FAFSA) process, a Federal Direct Unsubsidized Loan is automatically included on the student’s Award in PAWS if he or she has sufficient Remaining Need after all other non-loan aid for which the student qualifies has been awarded.  Once the student accepts the Unsubsidized Loan in PAWS, the student must then complete the following application requirements before any loan funds can be disbursed:

  1. Login at StudentLoan.gov using his or her Federal Student Aid (FSA) ID (formally the PIN) and do the following:
  2. Entrance Counseling for the Federal Direct Unsubsidized Loan as a graduate or professional student is usually required only once while enrolled at JSU.  If you have not previously completed Entrance Counseling at StudentLoans.gov for a Subsidized/Unsubsidized Loan at JSU, see Steps to Complete Federal Direct Loan Entrance Counseling.
  3. A Master Promissory Note (MPN) for the Unsubsidized Loan as a graduate or professional student is usually required only once while enrolled at JSU.  The MPN is a legal document whereby students promise to repay their loan and any accrued interest and fees to the U.S. Department of Education.  If you have not previously completed the Master Promissory Note for an Unsubsidized Loan at JSU, or it has been more than 10 years since you previously completed the MPN, see Steps to Complete a Federal Direct Loan Master promissory Note (MPN) on StudentLoan.gov.

Graduate PLUS Loan Application Steps:

Once the graduate student completes the Free Application for Federal Student Aid (FAFSA) process, a Graduate PLUS Loan, if approved, is included on his or her Award in PAWS if the student has Remaining Need after all other aid (including Unsubsidized Loans) for which he or she qualifies has been awarded.

To apply for a Graduate Direct Plus Loan:

  1. Login at StudentLoans.gov using his or her Federal Student Aid (FSA) ID (formally the PIN) and under “Direct Plus Loan Application for Graduate/Professional Student”, complete the following application requirements:
  2. Request a Direct PLUS Loan for Graduate on StudentLoans.gov this must be completed by the graduate student every award year if he or she wishes to receive the Graduate PLUS Loan so the Department of Education can perform the credit check.

A Master Promissory Note (MPN) for a Graduate PLUS Loan is usually required only once while the student is enrolled at JSU unless the prior MPN is required by an endorser.  The MPN is a legal document whereby students promise to repay their loan and any accrued interest and fees to the U.S. Department of Education.  If the student has not previously completed a Graduate PLUS MPN or the prior MPN required an endorser, then see Steps to Complete a Federal Direct Loan Master Promissory Note (MPN) at StudentLoans.gov.  

  1. Entrance Counseling for the Graduate PLUS Loan is usually required only once while enrolled at JSU.  If you have not previously completed Entrance Counseling as a graduate student at JSU, see Steps to Complete Federal Direct Loan Entrance Counseling.
  2. PLUS Counseling is only required when the student has an adverse credit history, but qualifies for the Graduate PLUS Loan by documenting extenuating circumstances or obtaining an endorser.  The U.S. Department of Education will inform the student if he or she must complete this counseling as part of the application process.

All student loan borrowers must complete a Loan Entrance Counseling session to be eligible for loan disbursements.  You may login to www.studentloans.gov to complete your loan entrance counseling session.

Alternative/Private Education Loans

A private (alternative) education loan is a non-federal education loan borrowed from a private lender such as a bank, credit union or other financial entity.  Unlike Federal Direct Loans, Private loans are offered by private lenders and eligibility depends on your credit score.  Private loans may also be available to students enrolled less than half-time, in non-degree programs or need assistance with prior balances.

The Process for Applying:

Research: You may research private loans with any lender.  Before you apply, first exhaust your eligibility for Federal loans.  You may review a list of private loan lenders at https://www.elmselect.com/link/query?schoolId=552

Disclosure Forms: A lender offering private loans for postsecondary educational expenses must provide required disclosures to the student and cosigner, if applicable, at three different times during the private loan origination process:

Application and Solicitation Disclosure: Provided during the online loan application process or via mail included with the Promissory Note. The disclosure provides loan terms and features at the time of application and must disclose information about federal student loan programs that may offer less costly alternatives.

Approval Disclosure: Provided after the loan is approved and the lender has received the promissory note, the Application and Solicitation Disclosure, the Borrower Self Certification Form, and the school certification.  The applicant and cosigner, if applicable, have 30 days to return the approval disclosure.

Final Disclosure: Provided after the lender receives the Approval Disclosure from the borrower and cosigner, if applicable, indicating that the loan has been accepted by the student and cosigner, if applicable.

Borrower Self-Certification Form is required to complete a Private Education Loan Applicant Self-Certification Form, which is provided by the lender the applicant applies with. This form must be completed by the applicant and submitted to the lender before the school certification will be requested. Applicants can access the form at  https://ifap.ed.gov/dpcletters/attachments/GEN1001A-AppSelfCert.pdf or contact our office to obtain the form and assistance with completing it.  If the applicant have questions, it is best to contact the lender.

School Certification:  Your lender will send JSU FAO an electronic certification.  The maximum amount you may borrow in private loan funds each academic year is the student’s cost of attendance minus other financial aid received.

Timing Requirements:  The lender must also provide the student with a three day rescission or “right-to-cancel” period after the final loan disclosure form is sent to the student.  The three day rescission period means that once the school has certified your loan and it is ready to be disbursed, there is a mandatory three business day waiting period before the lender may disburse loan funds to the school.  If a lender offers a mailed Final Disclosure (not online), then they must wait six days to disburse the loan to the school (three days for mail time and an additional three day rescission or “right-to-cancel” period).

Loan Exit Counseling

All student loan borrowers must complete Student Loan Exit Counseling when leaving school for any reason: graduation, withdrawal or termination.

You may login to www.studentloans.gov to complete the loan exit counseling session.

Resources Information:

Federal Student Information Center
1-800-4-FED-AID
1-800-433-3243
(TTY 1-800-730-8913)

Student Aid on the Web:  www.studentaid.ed.gov

For information about Master Promissory Notes and Loan Entrance Counseling:

Website:  www.studentloans.gov

For information about Direct Loans:

Direct Loan Website: www.studentloans.gov

For information about everything related to Direct Loan Repayment:

Borrower Services at the Direct Loan Servicing Center

1-800-848-0979
(TTY 1-800-848-0983)

Direct Loan Servicing Online: www.nslds.ed.gov

Track your outstanding federal student loans:

National Student Loan Data SystemSM (NSLDSSM):  www.nslds.ed.gov, which maintains overall financial aid history for federal student aid.

Note:  NSLDS only tracks federal student loans; you will need to track any private education loans you may have using your own records.

For everything you need to know about Direct Consolidation Loans, including an online application:

Direct Loan Consolidation Center

1-800-557-7392
(TTY 1-800-557-7395)
Direct Loan Consolidation Website: www.studentloans.gov