Introduction to Loans

The University of Mississippi's Office of Financial Aid administers a variety of loan programs for students who need financial assistance. Often a part of a financial aid package, loans provide students with an opportunity to invest in their future, typically at interest rates lower than those on the commercial market. Students at the The University of Mississippi who borrow wisely are acquiring marketable skills which will enable them to repay their loans.

Educational loans are the largest financial resource available to students pursuing postsecondary education. Student loan programs allow students to borrow money at low interest rates, with no collateral, and generally no co-signer. Most student loans do not need to be repaid until the student graduates or drops to less-than-half-time status.

Students are reminded that borrowing money for college is a serious financial obligation. In addition to the principal borrowed, interest is generally charged for use of funds. It is important to remember that when you borrow money it must eventually be repaid. When signing a loan promissory note, you enter into a legal, ethical agreement. Legally, you will be required to sign the note promising to repay the loan. Ethically, you are responsible to future borrowers, since collections from old loans are major funding sources for new loans. Think about this commitment carefully when taking out a loan, and consider how much you reasonably can afford to repay.

How to Apply:

At The University of Mississippi, eligibility for student loans requires that students apply for financial aid using the Free Application for Federal Student Aid (FAFSA). Once the application process is complete, the Office of Financial Aid sends each student a Financial Aid Award Notification.

Students accept the loan(s) awarded by signing and returning the Reply Copy of the Financial Aid Award Notification. For Stafford loans, the student will also indicate their lender of choice. The Office of Financial Aid maintains a list of Lender Partners recommended by the University.

The Master Promissory Note (MPN) is the new method for all students to apply for their Stafford Loans. The initial MPN application, which replaces the Common Stafford Application, may represent the one and only time you are required to complete a loan application.

First-time borrowers at The University of Mississippi must complete a Loan Entrance Counseling session.

Parent Borrowers who wish to utilize the Federal Parent Loan for a dependent undergraduate student (PLUS) are required to have the student file a FAFSA, and must complete the Ole Miss Online PLUS Parent Loan Application.

Graduate students who wish to borrow under the new Graduate PLUS Loan Program are required to file a FAFSA and must complete the Ole Miss online Graduate PLUS Loan Application.

Students wishing to apply for Private (Alternative) Loans must complete the Ole Miss Online Alternative Loan Application.

The University of Mississippi uses the ELM Resource Loan Process exclusively. ELM Resources is an alliance of lenders who have created the student loan industry's first ATM-scale data switch and interactive Internet client software. As a non-profit company, ELM provides The University of Mississippi uniform delivery of student loans regardless of which lenders her students choose to use.

ELM is an educational loan processing and management system. Utilizing a centralized database and network, it enables the University, its preferred lenders, guarantors, and servicers to process student loans regardless of which lender or guarantor is involved.

ELM National Disbursement Network (ELM’s NDN)

The University of Mississippi exclusively uses ELM’s National Disbursement Network for the Electronic Fund Transfer (EFT) of loan proceeds. ELM’s NDN enables The University of Mississippi to receive all loan funds and handle fund returns through a single disbursing agent. Stafford Loans are disbursed by EFT daily. PLUS Loan proceeds are disbursed by EFT to the University. Alternative loans are disbursed by EFT to the University.