Loans

Loans are a form of funding that must be paid back to your lender. Your lender may be the school, the federal government, or a private lender.  For more information about federal loans, visit this site.

Direct Loan Origination Fees & Interest Rates

Please review the Federal Student Aid website for the current origination fees and interest rates.

Loan Types

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Federal Direct Parent PLUS Loan

This federal loan program provides funds to the parent of a dependent student. The amount of this loan cannot exceed the cost of attendance less other financial aid. Borrowers pay the lender an origination fee when each loan is made. The lender of this loan is the Federal Department of Education. Interest begins to accrue upon disbursement, and the first payment is due within sixty (60) days. The interest rate is a variable rate based on Treasury Bill rates plus 3.1 percent and cannot exceed 9 percent.

Visit this site for more information about Parent Plus loans.

Federal Direct PLUS Loan for Graduate and Professional Students

This federal loan program provides funds to graduate and professional students. The lender of this loan is the Federal Department of Education. The terms and conditions applicable to PLUS loans for parents also apply to PLUS Loans for graduate and professional students.

Visit this site for more information about Graduate/Professional Plus loans.

Federal Direct Subsidized Loan

Students have to meet a federal needs test by completing the Free Application for Federal Student Aid (FAFSA) which determines if the student receives a full loan, a reduced loan or no loan. The amount of other financial aid will also be considered in determining the loan amount. Student borrowers must be attending at least 1/2 time to receive this loan. A new loan application will be required for the next enrollment period.

Borrowers pay the lender an origination fee when each loan is made. The lender of this loan is the Federal Department of Education. Repayment on this loan begins 6 months after the borrower is no longer at least 1/2 time. The interest rate for new Stafford borrowers after October 1, 1992, will be a variable rate—not to exceed 8.25 percent. The federal government pays the interest while the borrower is in school. Repayments are determined by the amount borrowed and begin six months after the student leaves school.

Refer to this chart to view the annual loan limits.

There is a maximum period of time that you can receive Direct Subsidized loans. Refer to this flier for details.

Visit this site for more information about the Federal Unsubsidized loans.

Federal Direct Unsubsidized Loan

This federal loan program has essentially the same provisions as the subsidized Stafford Loan, except it is available for all students regardless of income, and you will pay the interest during in-school and deferment periods. The loan amount is determined by the cost of attendance less other financial aid. Student borrowers must be attending at least 1/2 time to receive this loan. A new loan application will be required for the next enrollment period.

The lender of this loan is the Federal Department of Education. Interest accruing during the periods may be paid by you while you are in school or capitalized (accumulated and added to the principal) and paid after leaving school as agreed by you and your lender. This means that the federal government does not pay any interest or subsidy for you while you are in school. Borrowers pay the lender an origination fee when each loan is made. Repayment on the principle begins 6 months after the student is no longer at least 1/2 time. Independent students may qualify for additional annual amounts.

Refer to this chart to view the annual loan limits.

Visit this site for more information about the Federal Unsubsidized loans.

Federal Perkins Loan

This federal loan program offers a low-interest (5 percent) loan. No interest accumulates while you are in school at least 1/2 time. Eligible students may borrow up to $1,500 per year. The lender of this loan is the school. The loan is repayable beginning 9 months after the borrower is no longer at least 1/2 time. Loan repayments, deferments or cancellation provision will be outlined in the promissory note.

Visit this site for more information about the Federal Perkins loan.

Nursing Loan

This federal loan program offers a low-interest (5 percent) loan to students may borrow up to $4000 per year with a maximum for all years of study not to exceed $10,000. The lender of this loan is the school. Loan repayment will be made according to the provisions outlined in the promissory note the borrower signs at the time of each disbursement.

Owen Loan

This institutional loan program offers a low-interest (6 percent) loan. This loan is given to adult students (23 years and older) only. This loan is only available during the summer semester. The lender of this loan is the school. A separate application is required for this loan and is available in the our office.

Private Loans-Fast Choice

There are many loans that are funded from private student loan lenders. You may borrow from a private lender by researching their websites to apply online through them. Research their repayment options, incentives, and other features to compare against others lenders you are considering. Go shopping and do your homework before borrowing a private loan to make sure you are aware of all the specifications of the loan.

Introducing a way to search for private loan opportunities. Select Fast Choice to proceed with evaluating these opportunities. 

Requirements to Receive a Loan After Accepting

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Counseling

Loan counseling is required for any loan.
  • For the Federal Direct Subsidized, Unsubsidized, and Parent/Graduate PLUS loans, visit the Student Loan website to complete entrance counseling.
  • For the Perkins, Nursing, and Owen loans, you will be sent an email with information on how to complete the counseling via our third-party servicer ECSI.
  • For private loans, you will complete counseling when applying for the loan with the private lender.

Promissory Note

In order to receive any loan, a promissory note but be signed.
  • For the Federal Direct Subsidized, Unsubsidized, and Parent/Graduate PLUS loans, visit the Student Loan website to sign the promissory note.
  • For the Perkins, Nursing, and Owen loans, you will be sent an email with information on how to complete the promissory note via our third-party servicer ECSI.
  • For private loans, you will sign the promissory note when applying for the loan with the private lender.

Financial Awareness

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Loan Repayment

  • Once you are no longer at least 1/2 time at Murray State, you must complete direct loan exit counseling for the Federal Direct Subsidized, Unsubsidized, and Graduate PLUS loans.
  • Loan Repayment Information

Financial Aid Awareness-Know Your Finances!

Being aware of your financial situation is one step closer to managing your finances. Below is a link to assist you in understanding your finances.

Financial Awareness Counseling (this is not entrance counseling--select "Financial Awareness Counseling" once you sign in)

Contact Us

500 Sparks Hall, Murray, KY 42071-3312
Email - msu.sfa@murraystate.edu
Phone - (270)809-2546
Toll free - (800)272-4678,ext 3
Fax - (270)809-3116
(Please refer to the events calendar for university closure dates.)