How do I apply for a Federal Student loan?

File a Free Application for Federal Student Aid (FAFSA) every year. Based on the results of your FAFSA, a financial aid offer (Award Letter) will be sent to you via your myStanState Portal, which may include federal student loans. You can accept all or a part of the loan.

Before you receive your loan funds, you will be required to complete entrance counseling, and sign a Master Promissory Note (MPN), agreeing to the terms of the loan.

What is the difference between a SUBSIDIZED and an UNSUBSIDIZED loan?

Direct Subsidized Loans are available to undergraduate students with financial needs. Interest is paid by The U.S. Department of Education while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

I have an unsubsidized loan, can I make interest payments while in school?

Yes. Contact your loan servicer to find out how you can begin to make interest payments on your loan(s).

How is interest calculated on my unsubsidized loan?

Direct Loans are "simple daily interest" loans. This means that interest accrues daily. For example, on a $10,000 Direct Unsubsidized Loan with a 6.8% interest rate, the amount of interest that accrues per day is $1.86: (0.068/365) *$10,000=$1.86

TIP: You are encouraged to make interest payments on your unsubsidized loans while in school to prevent interest from capitalizing on the loan.

Why do I have to meet Satisfactory Academic Progress to receive a loan?

Satisfactory Academic Progress (SAP) toward an eligible degree or certificate is required by federal, state, and institutional rules as one condition for financial aid eligibility. 

I am nearing graduation and do not know how much I have borrowed, where do I go?

Visit the National Student Loan Data System (NSLDS) website at NLSDS, where you will find information regarding your total loan debt, the company that is servicing your loans, and their contact information.  You will need to create an FSA ID to access this information. 

What is a Loan Servicer?

A Loan Servicer is an entity that maintains Federal Loans for the department of Education. Tasks performed include:

  • Collection of payments,
  • Process requests for payment plan changes and
  • Respond to customer service inquiries.

To find out who your Loan Servicer is visit a Federal student aid loan services.

Who do I contact to repay my Perkins Loan?

ECSI is the company that services our Perkins loans you can visit them at ECSI, where you will be able to manage your Perkins loan, update your information, view your statements, pay your bill and contact them in case of any questions.

I am delinquent with my Perkins Loan, what can I do?

If you are delinquent or nearing default on your Federal Perkins Loan, you can contact ECSI borrower services at 888-549-3274 or visit them at Heartland ECSI to set up a repayment plan that will work for you.
Failure to contact them in time will result in your loan being sent to collections.

What if my loans are already in default?

If your Federal student loans are already in default status, you can contact your Loan Servicer for instructions on how to resolve your default. You can also receive Debt Resolution Information with the Federal Student Aid by visiting ED Debt.