Loans

FEDERAL LOAN PROGRAMS

You must be enrolled in a minimum of 6 credit hours to be eligible for loan assistance.

All loans are made in two equal disbursements based on your enrollment status.

If you will be attending fall & spring terms, you would receive one disbursement in fall & one in spring.

All new borrowers must complete Entrance Counseling and a Master Promissory Note prior to disbursement. Both requirements can be completed at www.studentloans.gov.

What is Entrance Counseling?  During Entrance Counseling, a loan borrower will learn about the following:

• What a Direct Loan is and how the loan process works
• Managing your education expenses
• Other financial resources to consider to help pay for your education
• Your rights and responsibilities as a borrower

Loans must be repaid.

When you withdraw, graduate or drop below half-time, you are required to complete Exit Counseling. 

Exit counseling allows a student borrow to:

• Review repayment information for their outstanding federal student loans
• Know when their first payment will be due and how much it will be. 
• This will help you budget your income to be ready to begin repaying your student loans at the end of your grace period.

You may also refer to www.studentloans.gov for information on loan forgiveness, consolidation, and consequences of non-payment (default).

Federal Direct Subsidized & Unsubsidized Loans

• A federally funded student loan based on financial eligibility as determined by filing the Free Application for Federal Student Aid.
• Fixed interest rate.  The student borrower is responsible for the interest which accrues while enrolled on unsubsidized loans. The federal government pays the interest for students whose loans are subsidized.
• Repayment begins six months after the student graduates or ceases to be a half time student with a minimum payment of $50 or higher based on the aggregate total of loans borrowed.
• Undergraduate, dependent students may borrow $5,500 as a freshman; $6,500 as a sophomore, and $7,500 each in the junior and/or senior year. Total amount that may be borrowed as an undergraduate is $31,000.
• Undergraduate, independent students (as defined by the Department of Education) may receive additional amounts through the unsubsidized loan program in the amount of $4,000 as a freshman or sophomore and $5,000 for the remaining undergraduate years not to exceed an aggregate of $57,500 (Total of subsidized and unsubsidized).
• Graduate students may borrow up to $20,500 in unsubsidized loan each academic year.  Total amount that may be borrowed is $138,500 including undergraduate borrowing.

Entrance Counseling and a Master Promissory Note are required from all first time borrowers before receiving a disbursement from a Federal Direct Loan.  Complete both requirements at:  www.studentloans.gov.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

Parents of dependent undergraduate students may apply for a credit based loan up to the cost of education less other aid awarded. 

• The interest rate is a fixed rate that will not change for the life of the loan.
• The loan will be disbursed in two payments and credited to the students account. Left-over funds will be paid to the student.
• Repayment begins 60 days after the full amount has been disbursed.  Parents may request a deferment of the interest and principal from the Direct Loan Servicing Center until six months from the time student ceases to be enrolled at least half-time.
• If the parent is denied on the PLUS, the student may have eligibility for an additional unsubsidized loan.  Information will be sent to the student once a PLUS application is received at the school. 
• Upon being approved for the PLUS loan, a Master Promissory Note must be completed in order for any disbursements to be made onto the students account.

Complete application at:  www.studentloans.gov

Complete Master Promissory note at:  www.studentloans.gov

Federal Direct Graduate/Professional Loan

• Available to graduate and professional students to help meet the cost of attendance.
• May borrow up to the cost of attendance minus any financial aid. Students must complete the Free Application for Federal Student Aid (FAFSA)
• Students must pass a credit check and be enrolled at least half-time.
• The interest rate is a fixed rate that will not change for the life of the loan. Interests accrues from the date the loan funds are disbursed. Repayment begins 60 days after the loan disbursement. Students may receive a deferment while enrolled in school at least half-time.
• First time Federal Direct Graduate/Professional Loan borrowers will receive instruction from our office on how to complete a PLUS Master Promissory Note (MPN) and Entrance Counseling.
• If the PLUS Loan Application is denied, you will be notifies by the Loan Origination Center on other ways to secure an approval.

Complete application at:  www.studentloans.gov

Complete Entrance Counseling and Master Promissory Note at:  www.studentloans.gov

ALL FEDERAL FUNDS ARE SUBJECT TO FEDERAL BUDGETARY RESTRAINTS.
 

Private Educational Loans

Private educational loan programs are non-federal educational loans through a private lender that allows a student to borrow additional funds after federal student aid has been exhausted. Each lender has different eligibility requirements, interest rates, fees and repayment terms. Private loans cannot be consolidated with federal loans for payment purposes. It is in your best interest to borrow the maximum amount of federal student loans before you borrow from a private lender. Do not apply too early for a private educational loan because lenders have an expiration date on the credit check and your application will not be certified until after you are registered for classes and have been packaged for all federal and state financial aid.

Private Educational Loans help you bridge the gap between federal aid and the full cost of your education.

• Students may borrow up to the cost of attendance minus any financial aid. Students should complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal aid.
• Funds are sent directly to the school
• Interest paid on these loans may be tax deductible; consult your tax advisor
• Use the funds for any education-related expense
• Receive a preliminary decision within minutes of applying online
• The interest rate is variable depending on the student and/or co-signers credit. Interest accrues from the date the loan funds are disbursed.
• Apply with a creditworthy cosigner and you may receive a lower rate.

To assist you in this process, FSU has compiled a comparison list on ELM Select for different private educational loan lenders.  You are free to choose any lender whether it is on the list or not without penalty.

Fairmont State University does not endorse any particular lender.

Before selecting a private educational loan lender, review the following (located on the left):

• Private Educational Loan Disclosure Notice
• Private Loan Lender List
• Student Loan Code of Conduct

Listed below is the website of possible lending institutions where you can apply for an private educational loan:

ELM Select: https://www.elmselect.com/oll/SchoolLenderList/?schoolId=8570