FAQs

Financial Aid FAQs

How do I go about applying for loans?

Schools participating in the federal loan program collect a FAFSA and Promissory Note. The funds for federal student loans, known as Stafford and Plus loans, have fixed interest rates at 6.8% and 7.9%. The Stafford loan is non-credit based; the Plus loan requires credit approval. Refer to the Financial Aid Handbook for instructions on how to apply for loans at MiSPP.

Are there other loan products out there?

Yes, there are private loans. Your local lender may be able to provide a private loan. Be sure to receive a disclosure statement showing costs as the interest rates may be based on libor plus points and may fluctuate at a higher percentage than fixed-rate loans. The rate you pay is based on your credit score. MiSPP does not participate in the Perkins loan programs.

What is the FAFSA anyway?

The Free Application for Student Aid (FAFSA) is used to determine the amount of money a family/individual is expected to contribute to the price of attending a college or university. The results of the FAFSA are used in determining the financial aid award.

Why should I do the FAFSA? I’ll probably get denied financial aid.

U.S. Citizens, and qualifying non-citizens and permanent residents will qualify providing they haven’t defaulted payment on a student loan or received a drug-related felony conviction. For example at the graduate level, this financial aid award provides a potential source for a $20,500 loan to finance your education.

I did my FAFSA, why haven’t I received notice of my federal loan?

There are more steps than just filling out the FAFSA in completing your loan application such as electronically signing a promissory note and listing references.

I’m not working, how will I get approved for a loan?

Your income is not measured to qualify for a Plus loan. You may seek loans to cover up to the “Cost of Attendance” budget that includes not only tuition costs, but also living expenses.

When do I start paying on my federal loan?

For Stafford Loans, repayment begins six months from graduation and for Plus loans, 60-days from the last loan disbursement. The Plus loan may be deferred with the Stafford loan repayment for six (6) months from graduation upon request for an extension from your loan servicer.

What will my payments be?

For every $20,000 of debt, the pay-off is approximately $250 per month for a 10-year repayment plan.

Information about loan products may change as directed by The Department of Education. For more information about Federal student loans, visit Direct Lending.