Loan Products and Definitions
Direct Loans
Interest on Federal Direct Unsubsidized loans begins to accrue upon disbursement. Completion of the Free Application for Federal Student Aid (FAFSA) triggers review of eligibility for Direct Unsubsidized loan. The annual loan limit at the Master’s level is $20,500 and the aggregate lifetime Direct Loan (total of Direct Subsidized/Unsubsidized) limit is $138,500. The PsyD annual loan limit is $35,778 and the aggregate lifetime limit is $224,000. Interest rates and origination processing fees are set annually by the federal government. Review the MSP Financial Aid Handbook for current year rates.
Federal Direct Grad PLUS loans are credit-based and designed to supplement the Direct Unsubsidized Loans for up to the Cost of Attendance. Grad PLUS requires its own application in addition to the FAFSA. See Apply for Financial Aid for the process.
Credit Check and Denials
A credit check is performed during the process of applying for the Grad PLUS loan. If denied, students may contact the Student Loan Support Center to appeal the credit decision or they may choose to add a loan endorser who co-signs the loan. The Student Loan Support Center is open 8 AM – 11 PM Monday through Friday at 800-557-7394.
Private Loans
Private loans may not be consolidated (re-financed) with Direct Loans. Variable interest rates plus 3 to 14% additional interest points/fees, dependent on credit score, may apply.
Your Student Loan
Financial aid recipients attending MSP must complete exit counseling for federal loans prior to graduating, when enrollment status is less than half-time, and if a student withdraws completely from a semester. This counseling exercise is mandated by federal regulations. Through counseling you will receive loan information, repayment options, loan consolidation information, and budget planning assistance. You will be asked to provide personal references and driver’s license number.
The National Student Loan Data System houses a record of your federal student loans. Private loans are not included in this listing.
Loan Repayment
Loan repayment plans vary from 10 to 25 years. Your loan servicer will notify you of the date your first payment is due. If you do not choose a repayment plan, you will be placed on the standard repayment plan, with fixed monthly payments for up to 10 years. While the standard repayment plan is the fastest and least-expensive repayment, alternative payment plans for borrowers with high debt or those who need to make lower payments are available. For further questions about repayment plans, view the links provided and contact your loan servicer.
The federal government offers four income-driven repayment plans:
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Income-Contingent Repayment Plan (ICR Plan)
These plans are designed to make your student loan debt more manageable by reducing your monthly payment amount. If you’d like to repay your federal student loans under an income-driven plan, you need to fill out an application.
Repayment Installment Calculator
Public Service Loan Forgiveness
Exit Counseling
Within 30 days of the expected graduation date, students are provided exit packages by the Financial Aid office. The Department of Education requires that MSP federal loan borrowers complete exit counseling prior to graduation, or if enrollment falls below half-time. Exit counseling allows students to update contact information and review various repayment options. Completion of Exit Counseling is a requirement of the MSP graduation checklist. Visit Graduate Exit Counseling.
