Loans
Loans are a form of funding that must be paid back to your lender. Your lender may be the school, the federal government, or a private lender. Visit the U.S. Department of Education resource for Federal Student Aid for more information.
Direct Loan Origination Fees and Interest Rates
Please review the Federal Student Aid website for the current origination fees and interest rates.
Loan Types
A Federal Parent PLUS loan is a credit-based Federal Direct Loan for parents that can be used to help pay for college expenses of a dependent undergraduate student. The loan amount is limited to the cost of attendance minus financial aid and resources. Learn how to apply for this loan, interest rates and repayment options.
A Federal Graduate PLUS Loan is a credit-based Federal Direct Loan for graduate and professional students that can be used to help pay for college expenses. The loan amount is limited to the cost of attendance minus financial aid and resources. Learn how to apply for this loan, interest rates and repayment options.
A loan based on financial need for which the federal government generally pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. A borrower is eligible to receive subsidized loans for up to 150% of his or her program length.
Who can get Direct Subsidized Loans?
Direct Subsidized Loans are available to undergraduate students with financial need.
How much can you borrow?
Your school determines the amount you can borrow, and the amount may not exceed your financial need.
Who will pay the interest?
The U.S. Department of Education pays the interest on a Direct Subsidized Loan
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while you’re in school at least half-time,
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for the first six months after you leave school (referred to as a grace period*), and
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during a period of deferment (a postponement of loan payments).
A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. This type of loan is not based on financial need.
Who can get Direct Unsubsidized Loans?
Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
How much can you borrow?
Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
Who will pay the interest?
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
This federal loan program offers a low-interest (5 percent) loan to students may borrow up to $4000 per year with a maximum for all years of study not to exceed $17,000. The lender of this loan is the school. Loan repayment will be made according to the provisions outlined in the promissory note the borrower signs at the time of each disbursement.
There are many loans that are funded from private student loan lenders. You may borrow from a private lender by researching their websites to apply online through them. Research their repayment options, incentives, and other features to compare against others lenders you are considering. Go shopping and do your homework before borrowing a private loan to make sure you are aware of all the specifications of the loan.
Introducing a way to search for private loan opportunities. View our comparison chart of loan lenders.
Requirements to Receive a Loan After Accepting
Loan counseling is required for any loan.
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For the Federal Direct Subsidized, Unsubsidized, and Parent/Graduate PLUS loans, visit the Student Loan website to complete entrance counseling.
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For the Nursing loan, you will be sent an email with information on how to complete the counseling via our third-party servicer ECSI.
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For private loans, you will complete counseling when applying for the loan with the private lender.
In order to receive any loan, a promissory note must be signed.
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For the Federal Direct Subsidized, Unsubsidized, and Parent/Graduate PLUS loans, visit the Student Loan website to sign the promissory note.
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For the Nursing loan, you will be sent an email with information on how to complete the promissory note via our third-party servicer ECSI.
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For private loans, you will sign the promissory note when applying for the loan with the private lender.
Financial Awareness
Once you are no longer at least 1/2 time at Murray State, you must complete direct loan exit counseling for the Federal Direct Subsidized, Unsubsidized, and Graduate PLUS loans.