Loan Counseling
Sign Master Promissory Note
All students that receive a student loan after July 1, 2010, must complete a new Master Promissory Note and complete new Loan Entrance Counseling. Loan funds cannot be paid to a student until this occurs.
Why are there changes to my student loans for Summer II 2010 and the 2010-2011 academic year?
In the past, Delta State University processed Federal Stafford and PLUS loans through the Federal Family Education Loan program, in which students and parents borrowed from private lenders and banks. Beginning on July 1, 2010, the University is required to participate exclusively in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U. S. Department of Education.
Why is the University changing its loan process?
On March 25, 2010, the U. S. House of Representatives and the U. S. Senate passed The Health Care and Education Affordability Reconciliation Act of 2010. This bill makes major changes in several federal student aid programs and mandates that effective July 1, 2010, all federal student loans (Stafford and PLUS) will be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, is eliminated effective June 30, 2010. President Obama signed the bill into law on March 30, 2010.
What do I have to do to get my loan funds for next year?
1. Complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov
2. Provide documents requested by the Financial Aid Office.
3. Complete a new Master Promissory Note for the Direct Loan Program at www.studentloans.gov
4. Complete Loan Entrance Counseling for Direct Loans at www.studentloans.gov
Can I fill out my Master Promissory Note and complete Loan Entrance Counseling now?
Yes. You can do both at www.studentloans.gov It is recommended that you do so by July 1, 2010.
Federal Direct Student Loans
Federal Direct Subsidized Stafford Loan
Federal Direct Subsidized Loans are loans with a variable interest rate of up to 8.25% made to students attending school at least half-time. Students must complete the Free Application for Federal Student Aid (FAFSA) each school year to determine eligibility.
This loan does not accrue interest as long as the student is continually enrolled in 6 or more credit hours per semester. You must repay this loan.
Federal Direct Unsubsidized Loan
Eligible students can receive the Federal Direct Unsubsidized Loan regardless of family income. Students must complete the Free Application for Federal Student Aid (FAFSA) each school year to determine eligibility. The term unsubsidized means that interest does accrue while you are enrolled. These loans have a variable interest rate of up to 8.25%. Interest begins accumulating immediately. A number of repayment options are available. You must repay this loan.
Direct Student Loan Maximums
(Many students do not qualify for the maximum loan amount. The maximum is the most a student might be able to borrow. Many students are eligible for an amount less than the maximum.)
Dependant Undergraduates |
Subsidized |
Total (Subsidized & Unsubsidized) |
Freshman |
$3500 |
$5500 |
Sophomore |
$4500 |
$6500 |
Junior, Senior |
$5500 |
$7500 |
Independant Undergraduates |
Subsidized |
Total (Subsidized & Unsubsidized) |
Freshman |
$3500 |
$9500 |
Sophomore |
$4500 |
$10,500 |
Junior, Senior |
$5500 |
$12,000 |