Loan Types

 

Students have access to a wide varity of loans to cover their educational expenses. Review the information below for an in-depth desciption of all loan types available. 

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 Click below to learn more about each Federal Loan opportunity!

Federal Direct Subsidized Loans are awarded to undergraduate students based on financial need as determined by the FAFSA. The federal government pays the interest on the loan while the student is enrolled at least half-time in a degree-seeking program, until repayment begins and during authorized periods of deferment. To learn more about Federal Direct Subsidized Loans click here.

Federal Direct Unsubsidized Loans are not need-based and have a fixed interest rate. Interest accrues once the loan is disbursed and until it is paid in full. Students may elect to pay the interest while enrolled in school or request to defer payment on the interest. If you defer the interest, it will be added (capitalized) to the principal. For more information about Federal Direct Unsubsidized Loans click here.

Federal Direct Graduate PLUS Loans are awarded to graduate students who are enrolled in at least six credits in a degree-seeking program. There is no annual loan limit for the Graduate PLUS Loans but students cannot borrow in excess of their cost of attendance. For rates and more information on Federal Direct Graduate PLUS Loans click here.

Federal Direct Parent PLUS Loans are loans parents may apply for on behalf of their dependent student. Your student must be admitted into a degree-seeking program and enrolled at least half-time (six credits). For more information about rates and how to apply click here.

A Nursing Student Loan is a fixed low-interest (5%) loan for students with exceptional financial need. MSU awards Nursing Student Loans primarily from funds generated from former students repaying these loans. To read more about Nursing Student Loans click here. If you have any questions, please contact MSU’s Nursing Loan Servicer at 406-994-2701.

Alternative Loans are available from some private lenders and used as a last resort to fill unmet need between what you have received from federal financial aid sources and the cost of attendance. Alternative Loans are not federally funded. The terms and conditions on alternative loans vary widely and we strongly recommend you research the various rates, fees, and repayment options. For more information about Alternative Loans click here.

 
Loan Type Application Eligibility? 2022 - 2023 Interest Rate Accrues Interest While in School Loan Servicer? Do I have to Pay While I am in School? When Does Repayment Start?
Subsidized Loan FAFSA Based on Financial Need 4.99% No Determined by US Dept of Ed. No 6 months after graduating, withdrawal, or dropping to below 6 credits.
Unsubsidized Loan FAFSA Available to all applicants 4.99% Yes Determined by US Dept of Ed. No 6 months after graduating, withdrawal, or dropping to below 6 credits.
Parent Plus Loan FAFSA Available to all qualified applicants 7.54% Yes Determined by US Dept of Ed. No 6 months after graduating, or dropping to below 6 credits.
Nursing Loans MSU Nursing Program Based on Financial Need 5% No Hartland No 9 months after graduating, withdrawal from Nursing Program, or dropping to below 6 credits
Graduate & Professional Student Loan FAFSA Available to all applicants 6.54% Yes Determined by US Dept of Ed. No 6 months after graduating, or dropping to below 6 credits.
Private Loans At bank or loan provider Varies by lender Varies by lender, typically higher Yes Private Loan Provider Varies by lender Varies by lender