Student Financial Assistance

Grants and Loans

Grants

Delta State strives to provide every student with the resources available for financial aid. Federal grants may be applied through FAFSA. Students will need to meet certain requirements to be eligible for the grants.

Federal Pell Grants

The most need-based of the student aid programs, this program provides grant aid to low- and middle-income undergraduate students. Awards vary depending on the cost of attendance and financial circumstances of students and their families. Pell grants do not have to be repaid. Based on changes made to the Title IV student aid program by the recently enacted Consolidated Appropriations Act of 2012, undergraduate students can only receive a Federal Pell Grant for up to 12 semesters (or its equivalent).

Federal Supplemental Educational Opportunity Grants (FSEOG)

Participating schools award FSEOG to undergraduate students with exceptional financial need, based on the availability of funds. FSEOG awards for Delta State University usually range from $100 – $600 per year. FSEOG does not have to be repaid.


Loans

Several loan programs are available to fund college educations. Most have a low interest rate, and pay back is not required until graduation. Qualifications vary for each program.

Federal Direct Loan

Federal Direct Loans

There are two types of Federal Direct Loans:

Subsidized Stafford Loan

  • variable interest rate of up to 8.25%
  • part-time or full-time students
  • loan does not accrue interest as long as the student is continually enrolled in 6 or more credit hours per semester

Federal Direct Unsubsidized Loan

  • variable interest rate of up to 8.25%
  • eligibility is ensured regardless of family income
  • interest begins accumulating immediately, while enrolled
  • several repayment options are available

Apply!

  1. Students must complete a FAFSA application (fafsa.ed.gov) for each school to determine eligibility for direct loans. Loans must be repaid.
  2. All students that receive a student loan must visit studentloans.gov to complete a new Master Promissory Note and new Loan Entrance Counseling.  Loan funds cannot be paid to a student until this occurs.

Direct Student Loan Maximums

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.

Dependent Undergraduates

Classification Subsidized Total (Subsidized & Unsubsidized)
Freshman $3,500 $5,500
Sophomore $4,500 $6,500
Junior, Senior $5,500 $7,500

 Independent Undergraduates

Classification Subsidized Total (Subsidized & Unsubsidized)
Freshman $3,500 $9,500
Sophomore $4,500 $10,500
Junior, Senior $5,500 $12,500

Federal Perkins Loan

Federal Perkins Loan

A Federal Perkins Loan is a low-interest (5%) loan for students with exceptional financial need. Delta State is your lender, and the loan is made with government funds with a share contributed by the school.

The Perkins Loan will be repaid to Delta State beginning 9 months after you graduate, leave school, or drop below half-time status. Your monthly payment amount will depend on the size of your debt and the length of your repayment period.

Federal Parent Plus Loan

Federal Parent Plus Loan

Parents with a good credit history may be eligible for a loan to pay the education expenses of each child who is a dependent undergraduate student enrolled at least part-time.

Apply!
Sign in at studentloans.gov to endorse a PLUS loan.

Approved?
A PLUS Loan application will be certified by Delta State and forwarded to the Department of Education. Loan funds will be sent to Delta State at the beginning of the semester.

Not Approved?
Financial Aid counselors will determine if you are eligible for other financial aid funds.

Alternative Loans

Alternative Loans

Alternative loans are available to students who need additional expense funding from outside lenders. The lenders calculate the amount of eligibility based on the cost of attendance minus other financial aid or an annual loan maximum. Alternative loans are insured privately and tend to be more expensive than federal loans due to higher fees and interest rates.  A credit history and other factors may be required, as well as a cosigner.

What should I ask before taking out an alternative loan?

  • Have I tried ALL other resources? (grants, scholarships, federal loans or part-time jobs)
  • What are the eligibility requirements?
  • What is the interest rate and what is it based on?
  • When does repayment begin?
  • Can payment of principal and/or interest be deferred?
  • When is the interest capitalized?
  • How much are fees?
  • What are the minimum and maximum loan amounts per year?
  • Can payment be combined with Direct Stafford loan payments?
  • Can I borrow money to cover past due balances from a previous school term?
  • Are there interest rate deductions or other incentives for borrowers who make their payments on time?

Loan Counseling

Loan Counseling

Entrance Counseling and Promissory Notes

All students who 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.

Can I fill out my Master Promissory Note and complete Loan Entrance Counseling now?
Yes. You can do both at www.studentloans.gov.

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.

Borrower Rights & Responsibilities

Borrower Rights and Responsibilities

Responsibilities

Borrowing a student loan warrants responsibilities.

Repay the Loan. When a promissory note is signed, an agreement is made to repay the loan according to the terms of the note. The note is a binding legal document and states that, except in cases of discharge, the borrower must repay the loan–even if education is not completed, a job is not received after completing the program, or the borrower is dissatisfied with, or does not receive the education paid for. Consider this obligation before borrowing. If a loan is not repaid on time or according to the terms in the promissory note, the borrower may go into default, which has very serious consequences.

Voluntary Payments. Payments must be made on a loan even if a bill or repayment notice is not received. A borrower is obligated to make payments even if a notice is not received. Billing statements (or coupon books) are sent as a convenience.

Deferment. If applying for a deferment or forbearance, a borrower must continue to make payments until notified that the request has been granted. The loan may go in default if payments are not made during the process. A copy of any submitted request forms should be kept. The borrower should document all contacts with the organization that holds your loan.

Notification of Status. Upon graduation, university withdrawal, or a drop below part time status, a borrower must notify the appropriate representative (school, agency, or lender) that manages the loan. If a change of name, address, Social Security Number, or transfer to another school occurs, the representative should be contacted. If borrowing a Perkins Loan, the loan will be managed by the school that lends the money or by an agency that the school assigns to service the loan. If borrowing a FFEL Program Loan, it will be managed by the lender or its servicing agent.

Entrance Counseling. Regardless of the type of federal loan borrowed, entrance counseling must be completed prior to a first loan disbursement. Exit counseling must be completed before leaving school. These counseling sessions will be administered by Delta State and will provide important information about loans. Additional information about a loan will be provided by the lender.


Rights

Borrowers have certain rights.

Prior to a loan disbursement, the following information about a loan from the school or lender will be received:

  • full amount of the loan
  • interest rate
  • loan repayment date
  • effect of eligibility for other types of financial aid
  • a complete list of any charges that must be paid (loan fees) and information on how those charges are collected
  • yearly and total amounts available to borrow
  • maximum repayment periods and the minimum repayment amount
  • explanation of default and consequences
  • explanation of available options for consolidating or refinancing a loan
  • statement of loan prepayment without penalty

Before leaving school, the following loan information will be received from the school or lender:

  • Amount of total debt (principal and estimated interest), interest rate, and the total interest charges on a loan
  • Expected fees during repayment, such as late charges and collection or litigation costs upon loan delinquency or default
  • Explanation of available options for consolidating or refinancing a loan
  • Statement of loan prepayment without penalty.
  • The following information will be provided for FFEL Stafford Loan holders during exit counseling:
    • name of the holding lender or agency,
    • where to send payments
    • where to write or call with questions
    • description of current loans, including the average monthly anticipated payments
      description of applicable deferment, forbearance, and discharge provisions
      repayment options
    • debt management advice
    • notification that the following must be provided: expected permanent address, name and address of your expected employer, address of next-of-kin, and any corrections to school’s records concerning borrower’s name, Social Security Number, references, and driver’s license number
  • Right of grace period before repayment begins (Parents may not receive a grace period for a PLUS Loan.) A grace period begins when the borrower leaves school or drops below part-time status. The grace period length is shown on the promissory note.
  • Loan repayment schedule from school, lender, and/or the Direct Loan Servicing Center (as appropriate) stating the date that first payment is due, the number and frequency of payments, and the amount of each payment
  • Summary of deferment, forbearances, and discharge (cancellation) provisions, including the conditions under which the U.S. Department of Defense may repay the loan.

Parents that borrow a FFEL Program Loan must be notified when a loan is sold if the sale results in making payments to a new lender or agency. The old and new lender or agency must notify the borrower of the sale. The identity of the new lender or agency holding the loan, payment address, and contact information must be provided. (This does not apply to Perkins Loan borrowers.)

Student Loan Code of Conduct

Student Loan Code of Conduct

In compliance with the Student Loan Code of Conduct requirements outlined in the Higher Education Opportunity Act of 2008, Delta State University Financial Aid Office prohibits all of the following:

  • Assigning a lender to a borrower or refusing to certify a loan for a borrower’s choice of lender or guarantor
  • Accepting from lenders any staffing assistance for the financial aid office
  • Revenue sharing agreements with lenders
  • Conflicts of interest
  • Accepting gifts above a nominal value from lenders or guarantors
  • Accepting private loans conditioned on the use of a lender’s Title IV loans
  • Contracting arrangements with a lender that provides compensation to school students

For the following purposes, it is not considered a “gift” to the school for a lender or guarantor to provide:

  • Standard materials, activities or programs on issues related to a loan, default aversion, default prevention or financial literacy (i.e. brochurers, workshops, training).
  • Food, refreshments, training or informational material that is designed to improve the service of a lender, guarantor, or servicer if the training contributes to the professional development of the school staff.
  • Favorable terms, conditions and borrower benefits, as long as these are provided to all students at the school.
  • Entrance and exit counseling services, as long as the school controls the counseling and does not promote the products and services of the lender.
  • Philanthropic contributions not tied to loan volume.