Student Financial Services: Loans Master Promissory Note Master Promissory Note After you have accepted your loan awards by signing and returning your Award Letter, you will need to complete your Master Promissory Note. All students accepting a Direct Stafford Loan award must complete a MPN before receiving their first Stafford Loan at Milligan College. Complete your Master Promissory Note » Federal Direct Stafford Loan funds will not be disbursed unless a valid MPN is on file and Milligan College has originated your loan with the Department of Education. Even if your package includes both types of Stafford (sub and unsub) loans, only one MPN is necessary. It is valid for 10 years. Entrance Loan Counseling Entrance Loan Counseling If you are a new borrower or transfer student and your financial aid package includes a Federal Perkins Loan, Federal Stafford Loan, or NEW Graduate PLUS Loan, you are required to complete Entrance Loan Counseling before funds can be disbursed. The session allows you to review loan information and answer questions which demonstrate that you understand your rights and responsibilities as a borrower. At the end of the interview, you can print your confirmation that you have completed the interview for Milligan College. There are separate Entrance Loan Counseling Interviews for Federal Stafford, Perkins and Graduate PLUS Loans. Since each loan has different requirements, you must complete the session associated with your loan award, or both sessions if your financial aid package includes both. Stafford Perkins Graduate PLUS Loans Exit Loan Counseling Exit Loan Counseling All student borrowers who have graduated, withdrawn or dropped below half-time enrollment status are asked to complete an online Exit Counseling Interview. There are separate Exit Loan Counseling Interviews for Federal Stafford, Perkins and Graduate PLUS Loans. You must complete each session separately if you have all types of loans. The interview allows you to review loan information and answer questions which demonstrate that you understand your rights and responsibilities as a borrower. At the end of the interview, you can print your confirmation that you have completed the interview for Milligan College. Stafford Perkins Graduate PLUS Loans PLUS Loans PLUS Loans PLUS (Parent Loan for Undergraduate Students) and Graduate Students A Federal Direct PLUS Loan is a credit-based loan for parents of undergraduate students and for graduate students. It must be repaid. Graduate students may benefit from using the PLUS loan as opposed to an alternative loan because students may not qualify for an alternative loan based on credit history, or the interest rate may be higher than the 7.9% Direct PLUS Loan interest rate. For new student loan borrowers: The Graduate PLUS Loan requires Entrance Counseling for all first-time borrowers and Exit Loan Counseling for all borrowers who are graduating, not returning to Milligan, or who have dropped below at least half-time enrollment status. If you need assistance in determining the amount to borrow, please contact Student Financial Services. Applying If you are a parent borrower, you may apply for the Federal Direct PLUS Loan. The student must file the FAFSA. In addition, you must complete the PLUS Loan Request Process and Master Promissory Note (MPN) for the Federal PLUS Loan. The Department of Education will notify the Student Financial Services Office that you have completed the PLUS Request Process and the MPN. The acknowledgement that the PLUS Loan has been approved must be received no later than Registration day. Alternative Loans Alternative Loans After exhausting all other forms of financial aid, students may consider Alternative Loan programs as an additional source of funding. Alternative Loans are non-federal loans. They are credit-based loans that may be used as supplemental resources for paying college colleges. Students should exhaust all federal aid opportunities first. Interest rates for Alternative Loan programs are based on the student’s credit rating or the credit rating of the co-borrower. A co-borrower may be required, depending on the student’s credit history. APPLYING To apply, you must submit an Alternative Loan Request Form to Student Financial Services, and complete the application and other necessary paperwork for your chosen lender. An alphabetic listing of lenders that Milligan College students have utilized over the last 3 years is listed here. This list is in no way exclusive or exhaustive of all existing lenders. You have the right to select any lender you wish for an Alternative Loan. If your lender is not listed, please contact the Student Financial Services Office for further instructions regarding the loan process. The Student Financial Services Office will process your loan quickly and accurately regardless of the lender you choose. ALTERNATIVE/PRIVATE LOAN REGULATIONS (TITLE X OF THE HIGHER EDUCATION OPPORTUNITY ACT) Effective February 14, 2010, both private lenders and institutions offering private loans to students must comply with new regulations per the Federal Reserve Board. Under these laws, a lender offering private loans for postsecondary education expenses must first provide a disclosure about loan terms and features at the time of application and must disclose information about federal student loan programs that may offer less costly alternatives. If the initial application reaches an approval status, a second loan disclosure statement must be provided to the student at that time. If a student accepts the loan terms provided in the second disclosure statement, a third final disclosure must be provided when the loan is consummated. An additional piece of these private loan regulations require an applicant to complete a “self-certification form” and return it to the lender before they may disburse the loan to the school. The “self-certification form” may be found at the lender’s website or you may request this form from the Student Financial Services Office. Each alternative loan lender may have a slightly different application process; therefore, it is best to contact your alternative loan lender directly if you have any questions. Finally, a lender must provide the student with a 3-day rescission or “right-to-cancel” period after the final loan disclosure form is sent to the student. The 3-day rescission period means that once the school has certified your loan and it is ready to be disbursed, there is a mandatory 3-business-day waiting period before the lender may disburse loan funds to the school. If a lender only offers a mailed Final Disclosure (not online) then they must wait 6 days to disburse the loan to the school (3 days for mail time and an additional 3 day “rescission or right-to-cancel” period). If you have any questions related to these regulations, please contact the Student Financial Services Office.