Student Financial Assistance
G-1 Parker Hall
300 W. 13th St.
Missouri S&T changed to the Federal Direct Lending Program in 2010. The following information was made available to all S&T students during the fall 2010 semester.
If you plan to borrow a federal student loan through the Federal Stafford or the Federal Grad PLUS loan program for the upcoming school year, OR your parents will borrow through the PLUS loan program, please read the following:
What is changing for next year aid year (the aid year beginning Fall Semester 2010)?
Missouri S&T currently processes Federal Stafford and Grad PLUS loans through the Federal Family Education Loan program in which students and parents borrow from private lenders and banks. Beginning in the Fall 2010 semester, Missouri S&T will participate exclusively in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the US Department of Education.
Why is Missouri S&T changing its loan process?
Volatility in the credit markets and reductions in lender subsidies have caused many lenders to stop offering borrower benefits and reduce their level of customer service. Several major lenders have made changes to their program that caused a delay in students receiving funds or other inconveniences. Some have dropped out of the FFEL program altogether, often with limited notice to our school or borrowers. We know that a number of you have had to complete multiple promissory notes with various lenders when your original lender dropped out of the program. The Direct Loan program is not impacted by changes in the economy and thus students will keep the same lender throughout their academic career at S&T. We believe that this program will offer students and parents a more streamlined, stable, and predictable borrowing experience.
What do I have to do to get my loan funds for next year?
As in prior years, you must complete the FAFSA (Free Application for Federal Student Aid), provide any documents requested by our office, and accept or decline your federal student loans via Joe’SS. You will then have to complete a new MPN for the Direct Loan program before your funds will disburse. The only exception will be for those students who borrowed through the federal student loan program prior to Fall 2007. Prior to Fall 2007, Missouri S&T participated in the Direct Loan program and if you borrowed under that program, and your master promissory note is less than 10 years old, you will not be required to complete a new promissory note. You will also NOT be required to do Direct Loan Entrance counseling.
Can I complete the new MPN now to get a head start?
Yes! You can complete your Direct Loan MPN online at www.studentloans.gov. You will need the same PIN that you used for your FAFSA to electronically sign the note. If you do not have a PIN, you may obtain one via http://www.pin.ed.gov.
What does this mean for me if I wish to consolidate my loans when I graduate?
You may consolidate both FFEL and Direct loans upon graduation. We encourage you to go to http://www.loanconsolidation.ed.gov and carefully consider all information regarding interest rates and repayment issues as you make your choice regarding reconciliation.
Where can I go to determine what loans I have borrowed and the lender who currently holds my loan?
We encourage you to retain all communication you receive from any lender or servicing agency regarding your student loans. You can go to www.nslds.ed.gov to determine who currently owns and/or servicers your loans.
*Note: If you will borrow from BOTH the Stafford and Grad PLUS programs, you will need to complete a separate MPN for each loan program. This change also applies to PLUS loans borrowed by parents.