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Loans

Student loans are sources of financial aid which must be repaid. The University of Minnesota, Morris will offer student loans as part of your financial aid award after reviewing your eligibility for grants, scholarships, and work-study.

Most student loan programs offer favorable terms reserved for students. Interest rates on student loans are typically lower than on other types of consumer loans, and repayment often does not begin until you are done with school or drop below half-time enrollment. Additionally, there may be an interest-free grace period before repayment begins and some loans offer forgiveness options if you work in a particular program or position after graduation.

You must have a completed Free Application for Federal Student Aid (FAFSA) on file at Morris to be eligible for federal loans.

Federal Loans »

Ford Federal Direct Subsidized Loan
The Ford Federal Direct Subsidized Loan is a need-based program, subsidized by federal funds that allows you to borrow money interest-free while in school at least half-time. You must complete the Direct Loan Master Promissory Note. (MPN) and Entrance Counseling if you are a first-time borrower.
Ford Federal Direct Unsubsidized Loan
The Ford Federal Direct Unsubsidized Loan is a non-need-based program. You will be charged interest on this loan, but have the option to defer paying the interest while in school at least half-time. You must complete the Direct Loan Master Promissory Note (MPN) and Entrance Counseling if you are a first-time borrower.
Federal Perkins Loan
The Federal Perkins Loan is a low interest (five percent) need-based program available to students who have exceptional financial need (the lowest EFC). There is no origination fee and interest does not accrue while you are enrolled. Repayment begins nine months after you graduate, withdraw or drop below half time status (six credits). Full details are provided on the promissory note. You must have a completed Free Application for Federal Student Aid (FAFSA) on file at Morris to be eligible.

The loan is made with federal government funds, but the University is the lender. Be aware that funds are limited. If you have not been awarded a Perkins loan, you must schedule an appointment with a Financial Aid Officer to apply. You must have a cumulative grade point average (GPA) of 2.0, be registered for 12 or more credits, and be working towards your first bachelor’s degree to be eligible.
Ford Federal Direct PLUS Loan
Parents of a dependent student may apply for a Ford Federal Direct Parent Loan for Undergraduate Students (PLUS) Loan, a non-need-based program that allows a parent to borrow any amount up to the cost of attendance minus other financial aid awarded.

Parents wishing to borrow a PLUS loan need to complete the PLUS Active Confirmation Form, and complete the PLUS Master Promissory Note before the funds will disburse to your student’s account.

Alternative Loan Programs »

The University of Minnesota, Morris recognizes that not all students and their parents will be able to meet the financial burden of paying for an education, even with the assistance of traditional aid resources. The University of Minnesota, Morris cannot recommend an alternative loan program for you. Since each student’s needs are unique, you and your co-signer should evaluate each loan program to determine the best loan for your educational plans.

Morris has an Alternative Lender List which provides the alternative loan programs frequently used by our students and will process all loan requests, regardless of whether the lenders appear on the list.

Ford Federal Direct PLUS Loan
Parents of a dependent student may apply for a Ford Federal Direct Parent Loan for Undergraduate Students (PLUS) Loan, a non-need-based program that allows a parent to borrow any amount up to the cost of attendance minus other financial aid awarded.

Parents wishing to borrow a PLUS loan need to complete the PLUS Active Confirmation Form, and complete the PLUS Master Promissory Note before the funds will disburse to your student’s account.

Student Loan Exit Counseling »

Exit counseling – leaving the University

Exit counseling sessions are required of all borrowers of federal (Direct) and University-administered (Perkins) student loan programs. Exit counseling provides you information regarding the rights and responsibilities of a borrower and a lender/servicer. You learn about repayment, deferment, and cancellation of your loan. These sessions prepare you to be responsible and effective in repayment of your educational loans.

You are required to complete exit counseling when you:

  • are about to graduate.
  • leave the University (even if it is just temporary).
  • drop your registration below half-time enrollment (6 credits).
  • transfer to another school.
  • leave for a National Student Exchange (NSE) experience.

Once you have been selected for the exit process, you will receive an email with instructions to complete your exit counseling online.

Did you transfer or withdraw?

If you recently transferred or withdrew from the University, please contact Student Account Assistance to let us know that your enrollment status has changed. Otherwise, it may take several months for us to identify you as needing to complete the exit counseling process. Delaying your exit could negatively affect your student loan grace period and/or repayment terms.

Holds

Make sure you respond by completing your exit counseling in a timely manner! A hold will remain on your student record until your exit counseling is complete, delaying your diploma, preventing registration, and preventing access to your transcripts.

Questions?

For more information about student loan exit counseling, contact Student Account Assistance.

Manage your Student Loans »

Federal Loans can be managed at www.studentloans.gov, where you can find information about repayment, deferments, and consolidation. You can also access your financial aid history and monitor your total federal loan debt and interest accrued.

Perkins Loans are serviced through the Student Account Assistance office on the Twin Cities campus. They can be reached at stdtloan@umn.edu or 612-625-8007.

Alternative Loans can be managed through your lender. If you are unsure about which lender you’ve borrowed from and what amount, you can contact the financial aid office for details about your school-certified alternative loans. Another helpful resource is www.annualcreditreport.com, where you can access your credit report once each year from the three main credit reporting agencies.




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