Frequently Asked Loan Questions
At the University of Mississippi, Federal Direct Loans and Direct PLUS Loans are offered through the Federal Direct Loan Program. The Uniter States Department of Education fund the loan.
A Direct Loan is a government-guaranteed loan available to students. There are two types of Direct loans: subsidized and unsubsidized. With a subsidized Direct Loan, the government pays the interest while you're in school. With an unsubsidized Direct Loan, you are responsible for the interest that accrues while you are in school. You can either elect to pay the interest while you are in school or defer it until after graduation. You should note that if you defer the interest, it will be capitalized upon graduation and will raise the overall cost of your loan.
Your eligibility is determined by the Office of Financial Aid. You will be notified of the exact amount you can borrow in the Financial Aid Award Notification. You can never borrow more than the cost of education, less other financial aid received. Below are the maximum amounts you may borrow.
If dependent, your combined subsidized and unsubsidized Direct Loan annual eligibility is as follows:
If independent, your subsidized and unsubsidized Direct annual eligibility is as follows
During the in-school period, the fixed rate is currently 4.5% for Subsidized Direct loans for Undergraduates.¬† For Graduate students and all Unsubsidized Direct loans, the rate is 6.8%.¬†
Yes. The Direct Loan, like any other loan, must be repaid.
The "lender" is the United States Department of Education makes your student loan funds available to you.
Loan counseling is required by federal regulations for all first-time borrowers at a school. The session gives an overview of the federal loan program, discussing the types of loans, interest rates, borrower rights and responsibilities, etc. This obligation can be met via online session.
An electronic promissory note can be completed online.¬† The student completes the note and submits it back to their lender. Then the lender will send the funds to the student's account in the Bursar's Office.
One can borrow up to the cost of attendance, minus any other financial aid being received. The cost of attendance is determined by the school's financial aid office, and usually includes tuition, room and board, books, living costs and transportation expenses.
The rate is fixed, and is currently 7.9%.
Your lender will notify both you and the Office of Financial Aid of their credit decision.¬† If you are denied, the Office of Financial Aid will contact you to discuss other borrowing options.
The money goes to the school, which first applies the funds to the student's outstanding balance. If a refund is due, it will be mailed or directly deposited to the parent borrower by the Bursar.¬†
Students must meet certain requirements after their loan funds arrive at the school. If these requirements are not met within a certain time frame, we must return the loan funds.
Request the deferment form from your bank and have our Registrar's Office complete it, then return it to the bank. Continue to make all payments until the bank sends you confirmation of your deferment.
A letter is required from the agency, or holder of the defaulted loan, stating that the default has been cleared.
Not immediately. The Federal Direct Loans and Direct Graduate PLUS Loans have a grace period of six months and the Federal Perkins and McKinstry Loans have a grace period of nine months before the student must begin repaying the loan. When you take a leave of absence, you will not have to repay your loan until the grace period is used up. If you use up the grace period, however, you will have to begin repaying your loan immediately when you graduate. It is possible to request an extension to the grace period, but this must be done before the grace period has ended. If your grace period has run out in the middle of your leave, you will have to make a payment on your student loans.