{"id":66,"date":"2010-06-23T16:07:33","date_gmt":"2010-06-23T22:07:33","guid":{"rendered":"https:\/\/www.jsums.edu\/financialaid\/loans\/"},"modified":"2022-05-03T14:50:26","modified_gmt":"2022-05-03T14:50:26","slug":"loans","status":"publish","type":"page","link":"https:\/\/www.jsums.edu\/financialaid\/types-of-financial-aid\/loans\/","title":{"rendered":"Loans"},"content":{"rendered":"

Loans are financial assistance that must be repaid. \u00a0Due to legislative changes to the Federal Loan program in March 2010, Jackson State University now participates in the Federal Direct Loan Program.\u00a0 The Federal Direct Loan program consists of the Federal Direct Stafford Loans, the Federal Direct PLUS\u00a0Loan and the Federal Direct GradPlus Loan.<\/p>\n

Types of Loans:<\/strong><\/p>\n

Federal Direct\u00a0Stafford Student Loans\u00a0(Subsidized and Unsubsidized)<\/u><\/a><\/p>\n

Steps To Apply:<\/strong><\/p>\n

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\u2019s 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.\u00a0 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:<\/p>\n

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  1. Entrance Counseling <\/strong>is usually required only once while enrolled at JSU.\u00a0 If you have not previously completed Entrance Counseling for a Subsidized\/Unsubsidized Loan at JSU, see Steps to Completing Entrance Counseling\u00a0at StudentLoan.gov<\/a>.<\/li>\n
  2. A Master Promissory Note (MPN)<\/strong> is usually required only once while enrolled at JSU.\u00a0 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.\u00a0 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)\u00a0at StudentLoan.gov<\/a>.<\/li>\n<\/ol>\n

     <\/p>\n

    Federal Direct\u00a0Plus Loan (for Parents of Dependent Undergraduate Students)<\/a><\/p>\n

    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\u2019s 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.<\/p>\n

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

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    1. Request a Direct PLUS Loan<\/strong> on StudentLoans.gov. This\u00a0must 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.\u00a0 See Steps to Request a Federal Direct Parent Plus Loan\u00a0at StudentLoan.gov<\/a>.<\/li>\n
    2. A Master Promissory Note (MPN) <\/strong>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. \u00a0If 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).\u00a0 <\/strong>See Steps to Complete a Federal Direct Loan Master Promissory Note (MPN)\u00a0at StudentLoan.gov<\/a>.<\/li>\n
    3. PLUS Counseling<\/strong> 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.\u00a0 The U.S. Department of Education will inform the parent if he or she must complete this counseling as part of the application process.<\/li>\n<\/ol>\n

       <\/p>\n

      Federal Direct Graduate\u00a0Plus Loan (for Graduate and Professional Students)<\/a><\/p>\n

      Steps To Apply:<\/strong><\/p>\n

      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\u2019s Award in PAWS\u00a0if he or she has sufficient Remaining Need after all other non-loan aid for which the student qualifies has been awarded.\u00a0 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:<\/strong><\/p>\n

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      1. Login\u00a0at StudentLoan.gov <\/a>using his or her Federal Student Aid (FSA) ID (formally the PIN) and do the following:<\/li>\n
      2. Entrance Counseling<\/strong> for the Federal Direct Unsubsidized Loan as a graduate or professional student is usually required only once while enrolled at JSU.\u00a0 If you have not previously completed Entrance Counseling\u00a0at StudentLoans.gov <\/a>for a Subsidized\/Unsubsidized Loan at JSU, see Steps to Complete Federal Direct Loan Entrance Counseling.<\/li>\n
      3. A Master Promissory Note (MPN)<\/strong> for the Unsubsidized Loan as a graduate or professional student is usually required only once while enrolled at JSU.\u00a0 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. \u00a0If 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.<\/li>\n<\/ol>\n

        Graduate PLUS Loan Application Steps:<\/strong><\/p>\n

        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\u00a0after all other aid (including Unsubsidized Loans) for which he or she qualifies has been awarded.<\/p>\n

        To apply for a Graduate Direct Plus Loan:<\/strong><\/p>\n

          \n
        1. Login\u00a0at StudentLoans.gov <\/a>using his or her Federal Student Aid (FSA) ID (formally the PIN) and under \u201cDirect Plus Loan Application for Graduate\/Professional Student\u201d, complete the following application requirements:<\/li>\n
        2. Request a Direct PLUS Loan for Graduate<\/strong> 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.<\/li>\n<\/ol>\n

          A Master Promissory Note (MPN) <\/strong>for a Graduate PLUS Loan is usually required only once while the student is enrolled at JSU unless the prior MPN is\u00a0required by an endorser.\u00a0 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. \u00a0If 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)\u00a0at StudentLoans.gov<\/a>.\u00a0\u00a0<\/strong><\/p>\n

            \n
          1. Entrance Counseling<\/strong> for the Graduate PLUS Loan is usually required only once while enrolled at JSU.\u00a0 If you have not previously completed Entrance Counseling as a graduate student at JSU, see Steps to Complete Federal Direct Loan Entrance Counseling.<\/li>\n
          2. PLUS Counseling <\/strong>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.\u00a0 The U.S. Department of Education will inform the student if he or she must complete this counseling as part of the application process.<\/li>\n<\/ol>\n

            All student loan borrowers must complete a Loan Entrance Counseling session to be eligible for loan disbursements.\u00a0 You may login to\u00a0www.studentloans.gov<\/a> to complete your loan entrance counseling session.<\/p>\n

            Alternative\/Private Education Loans<\/strong><\/p>\n

            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.\u00a0 Unlike Federal Direct Loans, Private loans are offered by private lenders and eligibility depends on your credit score.\u00a0 Private loans may also be available to students enrolled less than half-time, in non-degree programs or need assistance with prior balances.<\/p>\n

            The Process for Applying:<\/u><\/strong><\/p>\n

            Research:<\/strong> You may research private loans with any lender.\u00a0 Before you apply, first exhaust your eligibility for Federal loans.\u00a0 You may review a list of private loan lenders at https:\/\/www.elmselect.com\/link\/query?schoolId=552<\/a><\/p>\n

            Disclosure Forms<\/strong>: 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:<\/p>\n

            Application and Solicitation Disclosure:<\/strong> 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.<\/p>\n

            Approval Disclosure:<\/strong> 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.\u00a0 The applicant and cosigner, if applicable, have 30 days to return the approval disclosure.<\/p>\n

            Final Disclosure:<\/strong> 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.<\/p>\n

            Borrower Self-Certification Form<\/strong> 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\u00a0access the form at \u00a0https:\/\/ifap.ed.gov\/dpcletters\/attachments\/GEN1001A-AppSelfCert.pdf<\/a>\u00a0or contact our office to obtain the form and assistance with completing it.\u00a0 If the applicant have questions, it is best to contact the lender.<\/p>\n

            School Certification:<\/strong>\u00a0 Your lender will send JSU FAO an electronic certification.\u00a0 The maximum amount you may borrow in private loan funds each academic year is the student\u2019s cost of attendance minus other financial aid received.<\/p>\n

            Timing Requirements:<\/strong>\u00a0 The lender must also provide the student with a three day rescission or \u201cright-to-cancel\u201d period after the final loan disclosure form is sent to the student.\u00a0 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.\u00a0 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 \u201cright-to-cancel\u201d period).<\/p>\n

            Income-Contingent Funding<\/strong><\/p>\n

            Student Freedom Initiative\u00a0<\/a><\/p>\n

            Student Freedom Agreement<\/p>\n

            Student Freedom Initiative is a nonprofit organization dedicated to ensuring freedom in professional and life choices for students attending Minority Serving Institutions (MSIs), with an initial emphasis on Historically Black Colleges and Universities (HBCUs) like Jackson State University. While Student Freedom initiative’s student support services, such as mentoring, internships, and tutoring, will be open to all students at Jackson State University regardless of undergraduate standings, the Student Freedom Agreement is initially limited. Jackson State University does not endorse Student Freedom Initiative\u2019s Income Contingent Alternative to Parent Plus and other private education loans product. Jackson State University is not affiliated with Student Freedom Initiative.<\/p>\n

            The Student Freedom Agreement, which is\u00a0the\u00a0Student Freedom\u00a0Initiative’s\u00a0income-contingent funding alternative, is available to prospective juniors and seniors, as determined by credit hour, majoring in\u00a0approved\u00a0STEM programs. Eligible students who participate in a Student Freedom Agreement will be able to have a portion of their educational expenses paid for and commit to making monthly payments after graduation.<\/p>\n

            To be\u202feligible to apply for funding from us, your school must be a participant in the Student Freedom Initiative program, you must have a valid Social Security Number (SSN), and you must meet all of the following criteria immediately prior to a disbursement (as determined and confirmed by your school):<\/p>\n