While UMMC wants students to receive all of the grants and scholarships they can receive each academic year, many may still need to take out student loans to help finance their educational goals throughout their college careers.
About student loans
Educational loans are the largest financial resource available to students pursuing postsecondary education, as nearly two-thirds of students attending 4-year institutions will graduate with student loan debt. Student loan programs allow students to borrow money at low interest rates, with no collateral, and generally no co-signer (with the potential exception of Private Student Loans). Additionally, most student loans do not need to be repaid until the student graduates or drops to less than half-time status.
Students are reminded that borrowing money for college is a serious financial obligation. In addition to the principal borrowed, interest is generally charged for the use of funds. It is important to remember that when you borrow money it must eventually be repaid. When signing a loan promissory note, you enter into a legal, ethical agreement. Legally, you will be required to sign the note promising to repay the loan. Ethically, you are responsible to future borrowers, since collections from old loans are major funding sources for new loans. Think about this commitment carefully when taking out a loan, and consider how much you reasonably can afford to repay. With that being said, student loan debt, along with mortgage debt have always been known as the best forms of debt to have, as an investment in your education is an investment in your future.
From a financial standpoint, it is wise to pursue loans in the following order:
- Federal direct loans
- Institutional loans (need-based, if eligible)
- Federal Direct Parent PLUS or Federal Direct Graduate PLUS Loans
- Private student loans (school-certified)
How to apply
At UMMC, eligibility for student loans requires that students apply for financial aid using the Free Application for Federal Student Aid (FAFSA). Students and parents of dependent students must obtain a FAFSA PIN to complete the FAFSA. Usually after about a week of completing the FAFSA, the student will receive a Student Aid Report (SAR) that will confirm the information that has been entered on the FAFSA, which is important to review for any errors. Once the application process is complete, the Office of Student Financial Services updates the award notification.
Students accept the loan(s) awarded by accepting their awards online. When accepting loans online through individual Workday accounts, students will be prompted to complete a Federal Direct Loan Master Promissory Note (MPN), and complete the one-time online Federal Direct Loan Entrance Counseling. The Federal Direct Loan MPN is the method for all students to complete promissory notes for their direct loans. The initial MPN application may represent the one and only time you are required to complete an MPN. It is good for up to 10 years, granted you do not change lenders, change schools, or go 12 months or longer without borrowing with that particular lender.
For Direct Parent PLUS, Direct Graduate PLUS and private student loans, the borrower will have to complete a separate online application through the direct loan program. We encourage you to explore each of these loan products to learn more and apply online at studentaid.gov .