Federal Direct Stafford Loan Requirements
Entrance Loan Counseling
A first-time Federal Stafford Loan borrower at Mississippi State University (MSU) must complete an Entrance Counseling Session before he or she can receive a Federal Direct Stafford Loan disbursement. The entrance counseling consists mainly of viewing information about Federal Direct Stafford Loans and completing an attendance certification. A session can be completed on-line. The entrance counseling session on-line can be completed here Click here for an entrance interview session on-line.
Subsidized Calculation/Overaward
The subsidized Federal Direct Stafford Loan amount cannot exceed the cost of attendance (COA) minus the expected family contribution (EFC) minus the estimated financial aid (EFA) (including any educational loans) received during the loan period. Any decrease in the COA or increase in the EFC or increase in EFA received may result in an over-award, which may require a reduction of the loan. The over-award may require the student to immediately repay loan funds previously received.
Unsubsidized Calculation/Overaward
The unsubsidized Federal Direct Stafford Loan amount cannot exceed the cost of attendance (COA) minus the estimated financial aid (EFA) (including any educational loans) received during the loan period. Any decrease in the COA or increase in the EFA received may result in an over-award, which may require a reduction of the loan. The over-award may require the student to immediately repay funds previously received.
Proration/Graduating Seniors
MSU must prorate the Federal Direct Stafford Loan amount for an undergraduate who enrolls in only one semester as an undergraduate during the academic year and will graduate during the same academic year. The proration is based on a ratio of the number of hours enrolled during the semester divided by twenty-four hours multiplied by the applicable annual loan limit.
Enrollment / Enrollment Change
A student must be enrolled at least half-time (six credit hours for undergraduates and five credit hours for graduates) in eligible courses for each semester within the loan period. See Special Enrollment Options /Financial Aid Issues under Policies & Procedures (Policies and Information) for information, specifically concerning Co-op and Internships.
When a student withdraws, drops below half-time or does not enroll in a semester within the loan period, MSU must cancel the Federal Direct Stafford Loan disbursements with a disbursement date that is after the effective date of withdrawal or less than half-time attendance. Therefore, a student must reapply to receive a Federal Direct Stafford Loan for the semester in which the student returns and enrolls within the same academic year. To reapply, the student must complete a Change Request form online for the school year from which the enrollment change takes place and submit it to the Department of Student Financial Aid. Please note that retroactive withdrawals or drops may require the student to immediately repay funds previously received.
Non-Degree
Generally, a student who is not enrolled in a degree program (Special Non-Degree/Teacher Certification/Graduate Unclassified) is not eligible for federal financial aid; however, there are some exceptions. Please review the specific exception information:
Click here for undergraduate non-degree information
Click here for graduate unclassified/non-degree information
Please note that a student who meets the exception criteria to qualify for a federal student loan is only eligible to apply for the Federal Direct Stafford Loan for twelve consecutive months and he or she must process the appropriate documentation with the appropriate departments.
Master Promissory Note
The Direct Stafford Loan Master Promissory Note (MPN) is a multi -year promissory note that student borrowers must now use when applying for the Federal Direct Stafford Loan. This means that when a student signs the Direct Stafford Loan MPN, he or she does not have to sign another Direct Stafford Loan MPN for future Federal Direct Stafford Loans. Also, the MPN does not have a place for a specific loan amount. Consequently, a student, who already has accepted an specific loan amount, but wishes to borrow less than the maximum amount on the award notification, should contact the Student Loan Office to request a lesser amount.
Federal Direct PLUS Loan Requirements
Dependent Student
The student of the parent borrower must be a dependent undergraduate. (Student and parent must complete and submit the FAFSA).
Credit Check
The parent borrower must pass a credit check (no adverse credit).
Parent Definition
The parent borrower must be either the natural parent, adoptive parent, or stepparent (must submit information on the FAFSA).
Default/Grant Repayment
The parent borrower must not be in default on an educational loan or owe a refund on an educational grant.
U.S Citizen Status
The parent borrower must be a U. S. citizen or be an eligible non-citizen.
Educational Expenses/Purpose
The parent borrower may receive a Federal Direct PLUS Loan only to pay for the educational expenses of their eligible student.
Loan Calculation/Overaward
The amount of the Federal Direct PLUS Loan cannot exceed the cost of attendance minus the estimated financial aid (including any educational loans) received during the loan period. Any decrease in the cost of attendance or increase in the estimated financial aid received may result in an over-award, which may require a reduction in the loan. The over-award may require the student to immediately repay funds previously received.
Non-Degree
Generally, the parent is not eligible for the Direct PLUS Loan if the student is not enrolled in a degree program. However, there may be exceptions. Please review the specific exception information. Click here for undergraduate non-degree information.
Please note that the parent of a student who meets the exception criteria to qualify for the Federal Direct PLUS Loan is only eligible to apply for the Federal Direct PLUS Loan for twelve consecutive months and the student must process the appropriate documentation with the appropriate departments.
Enrollment / Enrollment Change
A student must be enrolled at least half-time (six credit hours) for each semester within the loan period. When a student withdraws, drops below half-time or does not enroll in a semester within the loan period, MSU must cancel the Federal Direct PLUS Loan disbursements with a disbursement date that is after the effective date of withdrawal or less than half-time attendance. Therefore, the parent and student must reapply to receive a Direct PLUS Loan for the semester in which the student returns and enrolls within the same academic year. To reapply the student must complete the online Change Request Form for the applicable aid period. (Please note that retroactive withdrawals or drops may require the student to immediately repay funds previously received).
Master Promissory Note
The Master Promissory Note (MPN) is a multi -year promissory note that parent borrowers must use when applying for the Federal Direct PLUS Loan. This means when a parent borrower completes a Direct PLUS Loan MPN, he or she does not have to complete another Direct PLUS Loan MPN for future Direct PLUS Loans so long as the loan is for the same student and it is within a ten year period.
Federal Direct Graduate PLUS Loan Requirements
Graduate Student
The student borrower must be enrolled in a Graduate Degree Program.
Credit Check
The student borrower must pass a credit check (no adverse credit).
Federal Stafford Loan
The student borrower must apply for the Federal Stafford Loan to discover how much Federal Direct Stafford Loan he or she may receive.
Loan Calculation/Overaward
The amount of the Federal Direct Graduate PLUS Loan cannot exceed the cost of attendance minus the estimated financial aid (including any educational loans) received during the loan period. Any decrease in the cost of attendance or increase in the estimated financial aid received may result in an over-award, which may require a reduction in the loan. The over-award may require the student to immediately repay funds previously received.
Enrollment / Enrollment Change
The student borrower must be enrolled at least half-time (five credit hours) for each semester within the loan period. When a student withdraws, drops below half-time or does not enroll in a semester within the loan period, MSU must cancel the Federal Direct Graduate PLUS Loan disbursements with a disbursement date that is after the effective date of withdrawal or less than half-time attendance. Therefore, the student must reapply to receive a Federal Direct Graduate PLUS Loan for the semester in which the student returns and enrolls within the same academic year. To reapply the student must complete the online Change Request Form for the applicable aid period. (Please note that retroactive withdrawals or drops may require the student to immediately repay funds previously received).
Master Promissory Note
The Master Promissory Note (MPN) is a multi -year promissory note that student borrowers must use when applying for the Federal Direct Graduate PLUS Loan. This means when a student borrower completes a Direct Graduate PLUS MPN, he or she does not have to complete another MPN for future Federal Direct Graduate PLUS Loans so long as it is within a ten year period.
