Loans
Loans are borrowed money that must be repaid with interest. They are often an important part of the financial aid package. Explore the steps to receiving and repaying student loans below.
Step 1: Accept Loans
After you complete the FAFSA, if you are eligible for loans, you will receive information from Mid-State in your award package about the loans you qualify for. For all federal loans, students must be enrolled in school at least half-time (6 or more credits) in order to be eligible.
Loan Types
- Federal Stafford Subsidized Loans: Based on need. The government pays the interest while the student is enrolled in school at least half-time (6 or more credits).
- Federal Stafford Unsubsidized Loans: Not based on need. The interest accrues from the time the money is disbursed to the student. The student can either make interest payments or let the interest accrue and capitalize it (have the interest added to the loan balance) when he/she begins repayment.
- Parent Loan to Undergraduate Students (PLUS): Parents of "dependent" students may apply for a loan to assist their child with educational expenses. Detailed information is available at studentaid.gov. For this type of loan, students need to let Mid-State know they are interested in the PLUS Loan by completing the Parent PLUS Request Form. The Financial Aid Office can then send a school certification to the Federal loan servicer. Funds will be transmitted to Mid-State electronically once these steps above have been completed. Funds will be used to pay the student account balance. Once the student has a zero balance, any remaining funds will be sent to the parent.
Step 2: Meet Requirements to Receive a Loan (First-Time Borrowers)
The following steps are required for all first-time borrowers. Once these requirements are met, they are good for ten years.
Student Loan Requirements
First-time Stafford Loan borrowers must complete both a master promissory note and entrance counseling. Loan checks will not be credited to your account until these requirements are met.
- Master Promissory Note (MPN): Complete your MPN online at studentaid.gov. To complete this process, you must have your FSA ID.
- Entrance Counseling (EC): Complete the entrance loan counseling at studentaid.gov. To complete this process, you must have your FSA ID.
- Special requirements for parent PLUS loan: The parent must complete a PLUS Loan Master Promissory Note (MPN) at studentaid.gov using their FSA ID. No loan will actually be processed unless the parent completes the DL PLUS MPN as the legal agreement to pay.
Step 3: Set Up a Repayment Plan
Repayment begins six months after the student stops attending school at least half-time. Loans are low interest and offer fixed rates, so the interest does not fluctuate. Learn more about managing your student loans.
Free Repayment Support from Ascendium
Mid-State has partnered with Ascendium Education Solutions® and its Repayment Support team. The student loan payment pause is ending soon, and we want to make sure you have the support you need to successfully restart repayment.
Because there are numerous scams and fraudsters taking advantage of students, we want to make sure you know Ascendium is a trusted resource for you.
How it works:
- Mid-State hired Ascendium to reach out to our students to help them manage repayment.
- There’s absolutely no cost to you for this support.
- Ascendium can answer your federal student loan questions. They will also help you find and implement an affordable repayment plan.
If you have questions or concerns about repaying your federal student loans, contact Ascendium’s Student Loan Success Center™ at 833.707.1220, Monday through Friday, 8:00 a.m. – 4:30 p.m. Central Time.
