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Loans and Grants

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Sections

Loans

  • Almost every student can qualify for some type of student loan. Loans must be paid back. 
  • All loan requests must be received at least 15 days before your last day of attendance. Loans are disbursed by term.
  • You must be enrolled for six credits or more per semester to receive a loan.
  • You must complete a FAFSA to apply for loans. 

Federal Direct Subsidized/Unsubsidized Loans

Eligibility is based on financial need. A freshman may borrow up to $3,500 depending upon eligibility. The maximum loan amount for a sophomore in the second year of a two-year program is $4,500. This loan has a fixed interest rate. 

Subsidized loans

The federal government pays interest while the student is in school. Interest and loan repayment begin six months after leaving school or dropping below half-time enrollment.

Unsubsidized loans

Similar to the subsidized loan, but the student is charged interest while in college. The borrower can accrue and capitalize the interest, which will increase the amount borrowed. Repayment of interest begins during school enrollment unless deferred. Students who do not qualify for a subsidized loan will likely qualify for an unsubsidized loan.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

If you're a dependent student, your parents may borrow up to the cost of education minus any financial aid received by the student. Repayment begins immediately with the first payment due 30-60 days after the loan is disbursed. This loan has a fixed interest rate. Credit-worthiness of the parent/stepparent is required. Find the application at Forms.

Student Educational Loan Fund (SELF)

Minnesota residents and non-residents are eligible to borrow. The lender is the Minnesota Office of Higher Education. A credit-worthy co-signer is required. You must be enrolled for six credits or more per semester to receive this loan and must pay the interest every three months from the time of disbursement. Freshman limit is $10,000, and sophomore limit is $10,000.

Dakota Education Alternative Loan (DEAL)

North Dakota residents are eligible to borrow through the Bank of North Dakota. A credit-worthy co-signer is required for borrowers under age 24. You must be currently enrolled. The maximum amount you can borrow is equal to the cost of attendance at M State minus all other financial aid received for the loan period. Visit DEAL Student Loan for more information.

Sallie Mae Smart Option Student Loan

Offers undergraduate student loans. A credit-worthy cosigner may be required. See Sallie Mae for details.

Applying for loans

The first step in determining eligibility for any type of financial aid is to complete the FAFSA and submit all required documents to the M State Financial Aid Office.

To begin the loan application process, you'll need to log in to your SpartanNet account, click on eServices and click on Loans under Financial Aid. Complete the following steps in order for loan funds to be applied to your student account:

  1. Complete the pre-requirements for Entrance Counseling and the master promissory note. M State will be notified electronically as these steps are successfully completed. (All students must complete these steps at EACH college they attend.)
  2. Request the amount you would like to borrow. Log in to your SpartanNet account, click on eServices and click on Loans under Financial Aid.

For help completing your master promissory note, contact Direct Loan Applicant Services at 800.557.7394.

Loan disbursements

Direct student loans are applied to the accounts of first-time borrowers after the 30th day of the semester. Students borrowing for one semester only will have half of their loan funds applied to their bill either by the 10th day of the semester or after the 30th day (if they are a first-time borrower). The second half of the loan will arrive at midterm.

Funding for all other borrowers will apply to their accounts on the 10th business day of the semester.  Alternative and private loans need a month for processing. Financial aid dates and deadlines are available at Important Dates.

Grants

Grants do not need to be paid back.

Alliss Two-Year Opportunity Grant

Available if you have a financial need and are enrolled in AA, AS, AAS, AFA, diploma, certificate and Minnesota Transfer Curriculum courses designed to transfer to baccalaureate programs. When you enroll, you are automatically considered for the Allis Grant as part of the financial aid process. If you have already earned a bachelor's degree, you are not eligible.

Federal Pell Grant

This amount is determined by the Department of Education as part of your FAFSA, and is awarded automatically.

Federal Supplemental Education Opportunity Grant (SEOG)

Available if you have great financial need and are registered for six or more applicable credits. Funds are limited, and early applicants receive priority.

Minnesota State Grant

This amount is determined by the Minnesota Office of Higher Education as part of your FAFSA and is awarded automatically.

Postsecondary Childcare Grant

This is a State of Minnesota program. If you are a Minnesota resident and will not receive TANF/MFIP benefits while attending college, you may be eligible for benefits to offset your costs of childcare. An application is required. Student loses eligibility after four years of full-time enrollment. Funds are limited, and early applicants receive priority. Visit Postsecondary Childcare Grant Program to learn more.