Financial Aid

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Electronic signing of the MPN and entrance counseling can both be completed at:

Steps To Receive a Student Loan: You must do these steps in this order.

  1. You must complete the Free Application for Federal Student Aid at
  2. If selected for verification, you must submit all required documents
  3. Once offered a student loan via the SPSU Banner web system, you must accept the offer. ONLY ACCEPTED LOANS ARE SENT TO THE GOVERNMENT FOR PROCESSING.
  4. New and transfer borrowers must complete the Master Promissory Note (MPN) and entrance counseling at

You must maintain Satisfactory Academic Progress. You must maintain the proper number of minimum hours enrolled. Undergraduates must be at least 6 hours and graduate students at least 4 hours each term.


Parent PLUS loans

You must complete all of the steps above for an additional loan in the parent’s name. This is only needed when the federal loans in the students’ name are not enough. Parents can borrow additional amounts needed in their name using their social security number and PIN, not the students number. Parents must complete the credit check requirement and sign the Master Promissory Note (MPN) at

SPSU will receive the credit results and MPN electronically.


Alternative or Private Loans

These loans are only to be used as a last result. These loans are credit based; usually require a co-signer and payment may be required while enrolled. A comparison of lenders frequently used for this last resort loan can be found at:


Sample Private Loan Disclosures

Application and Solicitation Sample Disclosure

Final Sample Disclosure

Loan Approval Sample Disclosure


Frequently Asked Questions about Loans are below

What are the benefits in the direct lending program?

The Direct Loan Program offers:

  • A guaranteed source of funding for student loans
  • A lower interest rate on PLUS loans
  • A single point of service for students during repayment
  • Additional repayment options for students and interest rate reductions for on time
  • The Public Service Loan Forgiveness Program add hyperlink

What are the interest rates on federal loans?

The interest rates are variable and  established each July 1. You will find out more information about the rates and terms when you complete the entrance counseling requirement at

What happens to the Stafford loans I borrowed in previous years from commercial lenders? Will they still be deferred now that SPSU is a part of direct lending?

Your Stafford loans from previous years should remain in deferment as long as you are enrolled at least half time for your program of study. You are responsible for notifying your lender if your enrollment status changes.

How will repayment work if I have other loans and Direct loans?

You will have to make separate payments to each lender. If all loans are Stafford loans then you can also opt to consolidate with the Direct Loan Program if you would like to make only one monthly payment. More information on consolidation can be found at

Will there be any additional requirements for me to receive my aid from the Direct Loan Program?

The application process for Direct Loans is the same as the aid process was in previous years. Students must complete the FAFSA. All students offered a loan must log into Banner web and accept the loan offered. ONLY LOANS IN AN ACCEPTED STATUS ARE SENT TO THE GOVERNMENT FOR PROCESSING.

How can I receive Direct Loans?

The application process for Direct Loans is the same as the aid application process was in previous years. US Citizens or permanent residents can apply for Direct Loans by completing the FAFSA. The financial aid office will process your application and send you notification when your financial aid is ready to review and accept. Once you have accepted your awards and completed a new Direct Loan MPN your loans should be set to arrive in a timely manner. However you are encouraged to check your financial aid information through BANNER WEB as well as read any and all letters you receive from the financial aid office.

Where can I find information about who services my other federal loans?

You can find information about the servicers of your other federal loans at You will need your FAFSA pin number to access this information.

How can I consolidate my loans with Direct Lending?

Students can go to or www.studentloans.govfor information about loan consolidation. You are not able to consolidate while in school.

What is Public Loan Forgiveness?

There is a new loan forgiveness program for public service employees. Under this program, the amount forgiven is the remaining outstanding balance of principal and accrued interest on an eligible Direct Loan for a borrower who is not in default and who makes 120 monthly payments on the loan after October 1, 2007. The borrower must be employed full-time in a public service job during the same period in which the qualifying payments are made and at the time that the cancellation is granted. Students can go to more information about Public Loan Forgiveness.

What are the five repayment options?(click here for a repayment calculator).

  • Standard Repayment-With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans.
  • Extended Repayment- To be eligible for the extended plan, you must have more than $30,000 in Direct Loan debt, but you have 25 years to repay it. Under the extended plan you have two options: for fixed or graduated payments. Fixed payments are the same amount each month you are in repayment, as with the
    standard plan, while graduated payments start low and increase every two years, as with the graduated plan below
  • Graduated Repayment- With this plan your payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.
  • Income Contingent Repayment- This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month
    the lesser of:
  1. the amount you would pay if you repaid your loan in 12 years multiplied
    by an income percentage factor that varies with your annual income, or
  2. 20% of your monthly discretionary income.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

  • Income-based Repayment (effective July 1, 2009) - Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.


Are there any other requirements?

After completing your education or withdrawing, you must complete exit counseling. This must be done on line at


Where can I find the total amount of all of my student loans?

Go to