Explore Student Loan Options
When you apply for financial aid, you may see loans included as part of your financial aid offer. Accepting loans is a personal choice and not required if offered. It is important that you fully understand how interest has the potential to stack up and what your options are for repayment. The more you know and prepare, the more successful you will be at managing student debt.
If you are a first-time borrower, some of the language surrounding loans may be unfamiliar to you. We have compiled a short glossary of frequently used terms to help.
Average MSU Texas student loan debt upon graduation
Six Months
You are not required to start paying back your Federal Student Loans for up to six months after leaving school
Of students at MSU Texas graduate without student loan debt
What Kinds of Loans Are Available?
Not all loans are created equal. It is important to know the basic aspects of each loan type before you lock in with a master promissory note. If you have questions, we are here to help you understand.
Federal Direction loans are the most common loans that students acquire. In order to receive these loans, you need to be enrolled at least half-time. You cannot borrow in excess of the total amount of your cost of attendance, including all other financial aid received.
Subsidized Loans
Unsubsidized Loans
PLUS Loans
Options Beyond Federal Direct Loans
College Access Loan
Alternative Private Loans
Book Loans
You may qualify to apply for a book loan if your financial aid refund check is less than $1,000 or if you are not receiving financial aid but still need help in order to afford your text books for the semester.
(Note: The following link will have application information available only during the time we are accepting applications.)
Explore Payment Plans
Payment plans, or Emergency Tuition and Fee Loans (ETFL) are short-term loans available to you that allow you to pay your tuition and fee expenses over the course of the semester.
This is a great option for students who want to avoid taking out federal student loans and stay on top of covering their college expenses in real time.
These loans are administered through the MSU Texas Business Office.
Repayment of Student Loans
While we are responsible for disbursing your loans, repayment is entirely your responsibility. That said, we are here to help you understand your options. The information provided below is limited to Federal Direct Loans.What are the different types of Repayment Plans?
You have several options for repayment and each is designed with different needs in mind:
- Standard Repayment Plan
- Graduated Repayment Plan
- Extended Repayment Plan
- Revised Pay As You Earn Repayment Plan (REPAYE)
- Pay As You Earn Repayment Plan (PAYE)
- Income-Based Repayment Plan (IBR)
- Income-Contingent Repayment Plan (ICR)
- Income-Sensitive Repayment Plan
What will my loan payment be each month?
How much loan money have I borrowed?
Log in to the National Student Loan Data System (NSLDS) using your login information used when you set up your FSA ID for the FAFSA.
Who is my Loan Servicer and where do I send payment?
What Is Loan Consolidation?
Loan Consolidation is essentially what it sounds like — it combines all of your student loans into a single loan.
Why would I want to consolidate my loan?
There are a number of reasons to consider loan consolidation:
- If you have multiple accounts (loans from undergraduate degrees, graduate degrees, parent PLUS loans, etc.) consolidating with a lower fixed rate might make more sense for you.
- If you are considering a loan forgiveness or cancellation option, it may be necessary for you to consolidate your loans.
- If you need to lower your monthly payment, loan consolidation can help with that. But note that consolidation generally extends the life of your loan, so you pay more in interest as you will be making more payments overall.
What if I have financial hardship and I am temporarily unable to repay my loan?
Life happens and you would not be the first person to face this dilemma. As such, there are safeguards in place to help.
If you anticipate your situation to be short term, you may qualify for either a deferment or a forbearance, which would allow you to temporarily suspend your payments. Note: You will continue to accrue interest during this time. Alternatively, you may want to consider switching to an Income-Driven Repayment plan to lower your monthly payments. These plans are based on your income and family size and, in some cases, you will not owe any payment.
The most important thing is to contact your loan servicer. They will be able to help you sort through your options.
What are my options if I am delinquent on my student loan repayment?
Contact your loan servicer. If you are struggling to make payments, it is possible that a different payment plan is a better option for you. Your loan servicer can help you weigh your options and make good choices.
After 90 days of being delinquent, your loan servicer will report the delinquency to the three major credit bureaus, which can be detrimental to your credit. Additionally, the longer your loans remain delinquent, the more they risk going into default. This is avoidable — your loan servicer can help.
What are my options if I am in default on my student loans?
Defaulted loans have devastating consequences. If you default on your student loans, you have a few options:
- Check to see if you are eligible for a Fresh Start.
- Repay the defaulted loan(s) in full. (This is often not a practical option.)
- Rehabilitate your loan(s).
- Consolidate your loan(s).
Additional Resources from Federal Student Aid
The Federal Student Aid website — this is where you go to complete the FAFSA — hosts a number valuable articles and resources that may help you find more peace of mind when considering student loans. Below, we have highlighted two of our most recommended articles.Money Management Checklist
No student wants to interrupt their education because of financial troubles. Here is a checklist to help you manage your financial life while in school.
Creating a Budget
Creating a budget may sound complicated, but all you need to do to get started is set aside some time to get organized – the benefits will make the effort worthwhile. The following steps will help you set up your budget and manage your finances by helping you track your income and expenses.
Will You Qualify for Loan Forgiveness?
There are programs that will forgive the remaining balance of your loan(s) after meeting certain eligibility requirements. The federal government understands that there is increased need for college-educated individuals to take on careers that may not offer the most lucrative pay – government employees, those who work for nonprofit organizations, and teachers. To offset your service, they have established the following loan forgiveness programs.Public Service Loan Forgiveness
Teacher Loan Forgiveness
Find Out If You Are Eligible for Loans
All government-issued loans require completion of a financial aid application. If you are considering a private lender, please consult with them to determine eligibility.
FAFSA
TASFA
Student Loans FAQs
What is Entrance Counseling?
Entrance Counseling is required before you can accept student loans. It ensures you understand the terms and conditions of your loan and your rights and responsibilities. You will learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
What is Exit Counseling?
Exit Counseling is required for all graduates, students who drop to less than half-time, and those who withdraw from the university or leave under any other reason. Exit counseling offers invaluable information regarding the terms and conditions surrounding the repayment of student loans upon departure from the university.