Loans are funds that students and/or parents borrow and must repay. Most loans are repaid after completion of studies, but some loans require repayment to begin shortly after the loan funds have been sent to the College.
Federal Direct Stafford Loans
Federal Direct loans are the most common loans for undergraduate and graduate students. Federal Direct loans must be repaid with interest. There are two types of loans: subsidized and unsubsidized loans .
Subsidized Loan: The federal government pays the interest while you are in college.
Unsubsidized Loan: The student is responsible for paying all the interest on the loan, during and after college.
Alternative Loans are private loans to supplement educational financing. Note: Applications should be returned to the Office of Student Financing for further processing of the loan.
Note: The terms of these loans differ from lenders, and the student should compare the information to determine which loan best suits their needs. If an undergraduate borrows loans, a co-signer may be required. If the student applies for an alternative loan, a revised award letter will be sent to the student as notification that the loan application has been sent to the lender. However, this does not implicate the loan has been guaranteed. The lender will notify the student directly.
Loan Entrance: Federal Requirement for First Time Loan Borrowers at MSMC: If you are a first time Federal Direct loans borrower at Mount St. Mary’s College, you must complete the Loan Entrance Counseling requirement. This is required by federal law to fully understand your rights and responsibilities as a student borrower.
Loan Exit: Federal Requirement for Students Leaving MSMC:
Upon exiting Mount St. Mary's College, you must complete the Loan Exit Counseling requirement. This is required by federal law to fully accept legal and financial responsibilities that last until the loan is repaid.
These funds are not associated with MSMC but are awarded to the student directly by an outside organization and must be coordinated with the student’s award package. In most cases, these scholarships will be used to offset loans and work-study, but in rare cases, may affect the amount of grant the student receives. Please make sure all checks are taken/mailed directly to the Office of Student Financing so the scholarships may be credited to the student’s account. Outside Scholarship funds will not be credited until the funds arrive from the donor. Please click here for a listing of scholarship websites.