Loans

Loans

Do you need a student loan? Use Federal Aid First

Loans are borrowed money that must be repaid with interest.

  • Repayment: Begins six months after the student stops attending school at least half-time. Loans are low interest and offer fixed rates so the interest does not fluctuate.
  • Federal Stafford Subsidized Loans: Based on need. The government pays the interest while the student is enrolled in school at least half-time (6 or more credits).
  • Federal Stafford Unsubsidized Loans: Not based on need. The interest accrues from the time the money is disbursed to the student. The student can either make interest payments or let the interest accrue and capitalize it when he/she begins repayment.
  • Student Loan Electronic (MPN) Master Promissory Note Process: You can complete your MPN online at studentloans.gov. To use this option, you must have your Dept. of Education "PIN" number to electronically sign your MPN.
  • Loan Entrance Counseling: Federal regulations require all first-time Stafford loan borrowers to complete entrance loan counseling before receiving student loan funds. Loan checks will not be credited to your account until this requirement is met. Note: First-time Stafford loan borrowers can complete the entrance loan counseling at studentloans.gov
  • Parent Loan to Undergraduate Students (PLUS): A loan parents of "dependent" students may apply for to assist their son or daughter with educational expenses. Detailed information is available at StudentLoans.gov
    • First, let MSTC know that you are interested in the PLUS Loan by completing the MSTC Parent PLUS Request Form so the Financial Aid Office can send a school certification to the Federal loan servicer.
    • Then, complete an application to the Federal loan servicer so they can determine your eligibility by following the Parent PLUS Loan instructions. No loan will actually be processed unless the parent completes the DL PLUS MPN as the legal agreement to pay.
    • Funds will be transmitted to MSTC electronically once all the steps above have been completed. If there are outstanding tuition and fees for the student, funds will be credited to their account and a difference check will be mailed to the parent.