Student Loan Information
Entrance Interview Counseling Instructions
Students borrowing a Federal Subsidized Stafford or Unsubsidized Stafford loan for the first time at PSU must complete the Entrance Interview Counseling before their first loan check can be disbursed.
***First-time PSU borrowers MUST complete counseling to receive their student loan!***
-
Go to the PSU homepage at www.pittstate.edu. Select the "Quick Links" drop down menu and click on the "Financial Assistance" link.
-
-
Click on "New User? Please register." Complete the information needed to create your online account.
-
Log in using your new User ID and Password. Once you are logged in, you will be taken to the Stafford Loan Guide "Orientation" page. Please read the information, then click on "Begin".
-
There are 11 counseling topics, the first being the "Master Promissory Note". Each topic has a summary page, a detail page, and the test question page. Once you answer the test question, you will be notified if your answer is correct. Click "Continue" to go to the next topic.
-
After you have answered all the questions, your score will be tabulated. You must answer 9 of the 11 questions correctly in order to complete the Stafford Loan counseling. If you do not correctly answer 9 questions, you will be redirected to the questions you missed so you can review the information again.
-
Once you have completed the testing requirements, you will be taken to a 12th topic, "Keeping Track of Your Loan". Please read this page carefully as it offers helpful information regarding organization of your loan files. Click on "Continue".
-
You will now see a summary page of the topics covered during your counseling session. Read the summary and click "Continue". If your session was completed successfully, you will see "Counseling Complete" on this page. You may wish to print a copy of this page for your records.
-
Your score will be electronically submitted to the Office of Student Financial Assistance.
Complete Master Promissory Note (MPN)
***You must do this before you can receive your student loan!***
-
Before attempting to sign your electronic Master Promissory Note, please return your Award Letter and allow two days for our office to certify your loan after the Award Letter has been received.
-
Once PSU certifies your loan, the lender/disburser will send you directions on how to complete your MPN via an electronic/web or traditional/mail process.
top
| Lenders Selected by PSU Students |
There are hundreds of lenders who participate in the student loan programs. Listed below are some that have been used by PSU students.
You have the right and the ability to select the education loan provider of your choice. You are not required to choose any lender named below.
|
Choosing a lender is an important decision. If you have previously borrowed a Stafford Loan, we suggest that you stay with the same lender. This will simplify the repayment process because all of your loans will be in one place. In selecting a lender, you may wish to consider the following: |
•
•
• |
Does the lender have a proven track record of good customer service?
Does the lender offer zero up-front fees?
Does the lender process electronically? |
|
top
Loan Disbursement Information
Loan proceeds will be disbursed at the beginning of each semester. Future disbursement dates are as follows:
| |
FALL 2008 |
August 25, 2008 |
| |
SPRING 2008 |
January 15, 2009 |
top
Repayment Schedule
No matter which loan program you choose, remember to borrow only what you absolutely need--what you borrow today you will need to pay back after you graduate or withdraw (with interest)! You may not need to borrow as much, if at all, if you are able to cut costs (personal, miscellaneous) or work. Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college costs. The result is lower debt and loan payments that will be easier to manage after graduation.
You may refer to the General Loan Repayment Chart below to see how loan funds borrowed today affect how much you need to pay back after you graduate or withdraw from school.
General Loan Repayment Chart
10 years (120 months)
As you can see from the chart below, it is important to carefully consider your need for loans and to realize how loan debt will affect your cost of living budget after you leave Pittsburg State University.
Loan Repayment Chart
(based on 8.25%)
Amount Borrowed |
# Monthly Payments |
Amount of Monthly Payments |
Total Amount Paid |
Total Interest Paid |
Suggested Annual Income Level |
$1,000 |
22 |
$49.14 |
$1,081.13 |
$81.13 |
$7,371 |
$1,500 |
34 |
$49.63 |
$1,687.32 |
187.32 |
$7,445 |
$2,000 |
47 |
$49.95 |
$2,347.44 |
$347.44 |
$7,793 |
$2,500 |
61 |
$50.31 |
$3,069.20 |
$569.20 |
$7,547 |
$2,625 |
65 |
$50.21 |
$3,263.91 |
$638.91 |
$7,532 |
$3,000 |
77 |
$50.30 |
$3,873.48 |
$873.48 |
$7,545 |
$3,500 |
95 |
$50.30 |
$4,778.30 |
$1,278.30 |
$7,545 |
$4,000 |
116 |
$50.16 |
$5,817.98 |
$1,817.98 |
$7,524 |
Amount Borrowed |
120 Monthly Payments |
Total Amount Paid |
Total Interest Paid |
Suggested Annual Income Level |
$4,500 |
$ 55.20 |
$6,623.56 |
$2,123.56 |
$ 8,280 |
$5,000 |
$ 61.33 |
$7,359.50 |
$2,359.50 |
$ 9,200 |
$5,500 |
$ 67.46 |
$8,095.45 |
$2,595.45 |
$10,119 |
$6,000 |
$ 73.60 |
$8,831.40 |
$2,831.40 |
$11,040 |
$6,500 |
$ 79.73 |
$9,567.35 |
$3,067.35 |
$11,960 |
$7,000 |
$ 85.86 |
$10,303.30 |
$3,303.30 |
$12,879 |
$7,500 |
$ 91.99 |
$11,039.26 |
$3,359.26 |
$13,799 |
$8,000 |
$ 98.13 |
$11,775.20 |
$3,775.20 |
$14,720 |
$8,500 |
$104.26 |
$12,511.15 |
$4,011.15 |
$15,639 |
$9,000 |
$110.39 |
$13,247.10 |
$4,247.10 |
$16,559 |
$9,500 |
$116.53 |
$13,983.05 |
$4,483.05 |
$17,480 |
$10,000 |
$122.66 |
$14,719.00 |
$4,719.00 |
$18,399 |
$15,000 |
$183.99 |
$22,078.50 |
$7,078.50 |
$27,599 |
$20,000 |
$245.32 |
$29,438.00 |
$9,438.00 |
$36,798 |
$25,000 |
$306.65 |
$36.797.51 |
$11,797.51 |
$45,998 |
$30,000 |
$367.98 |
$44,157.00 |
$14,157.00 |
$55,197 |
$35,000 |
$429.30 |
$51,516.50 |
$16,516,50 |
$64,395 |
$40,000 |
$490.63 |
$58,876.01 |
$18,876.01 |
$73,595 |
$45,000 |
$551.96 |
$66,235.50 |
$21,235.50 |
$82,794 |
$50,000 |
$613.29 |
$73,595.00 |
$23,595.00 |
$91,994 |
$55,000 |
$674.62 |
$80,954.51 |
$25,954.51 |
$101,193 |
$60,000 |
$735.95 |
$88,314.00 |
$28,314.00 |
$110,393 |
$65,000 |
$797.28 |
$95,673.50 |
$30,673.50 |
$119,592 |
$70,000 |
$858.61 |
$103,033.01 |
$33,033.01 |
$128,792 |
Loan Consolidation:
- Allows you to combine your federal loans so that you make only one monthly payment.
- You can consolidate any or all of your federal loans
- you choose which ones to consolidate (Stafford, Perkins and/or Nursing Loans).
- There is no cost to you to consolidate.
- You can usually lower the interest rate on your loans if you consolidate during your grace period.
- The loan servicer will assist you with the loan consolidation process.
- Applications and information about consolidation are available from the servicers.
- The application will ask for specific information about the loans you wish to consolidate. To complete the application contact your lender or servicer.
- For consolidation information for Nursing Student Loans contact the Cashier's Office at (620) 235-4092.
top
General Loan Information
Loans are borrowed funds which must be repaid, with interest, after you are no longer a student. As college costs climb, many families find that supplemental borrowing by the parent or student becomes an important resource to financing educational expenses.
Federal Need-Based Loans
Some federal loans are awarded to students on the basis of financial need:
Students are awarded need-based loans as part of their financial aid packages. Repayment is deferred and there is no interest on need-based loans as long as the student is enrolled at least half-time.
Federal Non-Need-Based Loans
Other federal loans are awarded to student not based on financial need:
Federal Unsubsidized Stafford Loans are awarded to students as part of their financial aid packages, while Federal PLUS Loans are not (see below for application instructions). Interest begins accruing immediately on non-need based loans. While in school, the principal of Unsubsidized Stafford is deferred and interest may be paid periodically or capitalized (added to the balance when you enter repayment). Repayment of principal and interest for PLUS Loans begins 60 days after the loan is disbursed. Non-need based programs would be of interest to students who:
- have little or no eligibility for need-based financial aid programs,
- need assistance in meeting the Expected Family Contribution (EFC) calculated by the federal need analysis formula called Federal Methodology,
- are classified as non-residents for tuition purposes and need additional resources to "fill the gap" between need-based financial aid and college costs, or
- have unusual costs above the standard student budgets used by the Office of Student Financial Assistance.
PLUS Loan
The Federal PLUS Loan (Parent Loan for Undergraduate Students) is intended to assist those families who:
- are not eligible for other types of financial aid,
- have remaining financial need after other forms of financial aid have been awarded, or
- wish to borrow all or part of their Expected Family Contribution.
The maximum that can be borrowed each year is the cost of education minus all other financial aid awarded.
PLUS Loan Eligibility Example:
$16,528 Cost of Attendance/Budget
- 12,000 Total Financial Aid Awards
=$3,528 PLUS Loan Eligibility
The borrower in this program is the parent of a dependent undergraduate student. You must reapply for the PLUS Loan each year that you wish to receive it. Contact the Office of Student Financial Assistance for required forms.
Origination and Guarantee Fees for Federal Stafford and PLUS Loans
Federal Stafford subsidized and unsubsidized loan awards have an origination fee of 3%. PLUS Loans also have a 3% origination fee. The origination and guarantee fees are subject to change as determined by the lender/guarantor.
Because origination and guarantee fees are subtracted from your loan awards, the actual loan amounts applied to your student account will be less than those listed on your Award Letter.
Terms of Student Loans
- Know what you owe. If you have lost track of your paperwork, use the free Loan Locator service of the National Student Clearinghouse.
- Choose a repayment plan. You have four repayment plans from which to choose.
- Level repayment: Least expensive option in terms of total interest costs. This plan provides a fixed monthly payment of at least $50 over a period of up to 10 years.
- Graduated repayment: Monthly payments start low and increase over time. Maximum repayment term is 10 years. Total interest cost are higher than level payment plan.
- Income-sensitive repayment: Payments are adjusted up or down annually to account for changes in your income. Repayment period can be extended from 10 years to 15 years under special forbearance provisions. Total interest costs are higher than level payment plan.
- Extended repayment: This option is available only if you did not have a balance on a Federal Family Education Loan Program loan as of October 7, 1998.
For more information on the four options go to www.usafunds.org.
Payment Relief Options
If you are unemployed, facing certain other personal financial difficulties, returning to school or pursuing certain educational or training programs you may qualify for temporary payment relief.
Deferments
For deferments you must submit the required documentation. If you don't meet the requirements for deferments, you may appeal to your lender or loan servicer for a forbearance.
Forbearance
To print these forms you may go to www.usafunds.org/forms/deferment_forbearance.html.
Loan Cancellation
You may also qualify for loan cancellation if you are teaching, a health professional or service volunteer. You would need to contact your lender or loan servicer to see if you qualify.
Glossary of Loan Terms
Capitalization: Adding accumulated interest to the loan principal rather than having the borrower make interest payments. Capitalizing interest increases the principal amount of the loan and the total cost of the loan over time.
Default: Failure to repay a loan according to the terms of the promissory note.
Deferment: A deferment means you may postpone making payments on your loan under certain conditions. For need-based loans, interest doesn't accrue during periods of deferment.
Forbearance: If you're unable to make payments on your loan for reasons such as unexpected personal problems or poor health and you don't qualify for a deferment, you may request forbearance of loan payments.
Grace period: A period before the first payment must be made on a loan. Usually, the grace period begins the day after the borrower ceases to be enrolled at least half-time.
Principal balance: The amount owed on a loan or loans at any given time. The principal balance may include capitalized interest.
Repayment period: The period during which a borrower is obligated to make payments on his or her loan.
top |
