This loan is to be repaid at 5 percent interest on the unpaid balance starting six or nine months after students leave the university. Priority is given to early applicants. On Subsidized Stafford loans, students must demonstrate financial need and the interest is paid by the federal government while students are in school. Students pay the interest while in school on Unsubsidized Stafford loans and are not required to demonstrate financial need. Maximum borrowing limits are based on the combined borrowing with Subsidized and Unsubsidized programs.
Students pay insurance and origination fees on each loan disbursement.
Indebtedness to MSU Moorhead under the Federal Perkins Loan program and to a bank under a guaranteed loan requires two monthly payments. The Financial Aid Office tries to choose the loan program which best meets the needs of students while maintaining a single lender when possible. Entrance counseling must be documented in the financial aid file before any loan proceeds are disbursed. Before graduating or leaving school, loan recipients must complete an Exit counseling session. Information regarding this requirement is available from the Financial Aid Office.