Types of Aid

Loans are funds that students and/or parents borrow and must repay. Most loans are repaid after completion of studies, but some loans require repayment to begin shortly after the loan funds have been sent to the College.

Federal Direct Stafford Loans
Federal Direct loans are the most common loans for undergraduate and graduate students. Federal Direct loans must be repaid with interest. There are two types of loans: subsidized and unsubsidized loans .

Subsidized Loan: The federal government pays the interest while you are in college.

• Junior & Senior: $5500 per year, max.

• Eligibility: Minimum half-time enrollment; Based on financial need.
• Requirements: FAFSA, Master Promissory Note, Entrance Counseling, and Exit Counseling.
• Interest: The interest rate is variable and adjusted each year on July 1, but cannot exceed 8.25%.
• Repayment: The principal balance is deferred until six months after graduating, withdrawing, or dropping below half-time. The Federal Government pays the interest on these loans while you are in school, and during the grace and deferment periods.

Unsubsidized Loan: The student is responsible for paying all the interest on the loan, during and after college.

• Junior & Senior: $7000

• Eligibility: Minimum half-time enrollment; not based on financial need.
• Requirements: FAFSA, Master Promissory Note, Entrance Counseling, and Exit Counseling.
• Interest: The interest rate is variable and adjusted each year on July 1, but cannot exceed 8.25%.
• Repayment: The student is responsible for all of the interest on the loan, but you can defer interest payments while you are in school. If you do, the accumulated interest will be added to the loan principal when repayment starts.

Federal Direct Parent PLUS Loan
Federal Direct Parent PLUS Loans enable your parents or stepparents to borrow up to the total cost of your education, minus any other aid you may receive. These loans are for undergraduate students only. Federal Parent PLUS loans are based on credit.

• Eligibility: These loans are available to parents who have satisfactory credit histories and the student carries at least halt-time course load. The amount borrowed cannot exceed the cost of education.
• Requirements: Parent PLUS Loan Application and Credit Worthiness.
• Interest: The interest rate is variable and adjusted each year on July 1, with a cap of 8.25 percent. Interest accrues from the date loan funds are first disbursed until the loan is repaid in full.
• Repayment: Begins immediately after the loan is fully disbursed.

Alternative Loans
Alternative Loans are private loans to supplement educational financing. Note: Applications should be returned to the Financial Aid Office for further processing of the loan.

• Eligibility: Most alternative loans require a credit-worthy applicant and/or co-signer. This includes a good credit history and a satisfactory income-to-debt ratio.
• Requirement: Alternative Loan Application. Please submit applications to the Office of Student Financing.
• Interest: Most loans have variable interest rates. Interest rates may be determined by the applicant and/or co-signers credit history.
• Fees: Most alternative loans have fees that are added to the loan amount requested.
• Repayment: Repayment begins 6 months after the student graduates, withdraws, or drops below half-time from school.

Note: The terms of these loans differ from lenders, and the student should compare the information to determine which loan best suits their needs. If an undergraduate borrows loans, a co-signer may be required. If the student applies for an alternative loan, a revised award letter will be sent to the student as notification that the loan application has been sent to the lender. However, this does not implicate the loan has been guaranteed. The lender will notify the student directly.

Loan Entrance: Federal Requirement for First Time Loan Borrowers at MSMU: If you are a first time Federal Direct loans borrower at Mount Saint Mary’s University, you must complete the Loan Entrance Counseling requirement. This is required by federal law to fully understand your rights and responsibilities as a student borrower.

Click here to complete your loan entrance counseling.

Loan Exit: Federal Requirement for Students Leaving MSMU:
Upon exiting Mount Saint Mary’s University, you must complete the Loan Exit Counseling requirement. This is required by federal law to fully accept legal and financial responsibilities that last until the loan is repaid.

Click here to complete your loan exit counseling.

These funds are not associated with MSMU but are awarded to the student directly by an outside organization and must be coordinated with the student’s award package. In most cases, these scholarships will be used to offset loans and work-study, but in rare cases, may affect the amount of grant the student receives. Please make sure all checks are taken/mailed directly to the Financial Aid Office so the scholarships may be credited to the student’s account. Outside Scholarship funds will not be credited until the funds arrive from the donor. Please click here for a listing of scholarship websites.