STUDENT LOANS | Student Financial Aid

FEDERAL DIRECT MASTER PROMISSORY NOTE

Student loan borrowers are required to use a Master Promissory Note when requesting funding through the Federal Direct Student Loan Programs.  The MPN allows students to borrow for multiple years without having to complete a new loan application each time.  The MPN will automatically expire upon the earliest of:

1. The date the Direct Loan Servicing Center receives written notification from the student asking that the MPN no longer be used as the basis for additional loans; or

2. Twelve months after the original MPN was signed, if no disbursements were ever made under that MPN; or

3. Twenty-four months after the last disbursement was made under that MPN; or   

4. Ten years from the date the MPN was signed.  If a portion of a loan is made on or before ten years from the signature date, remaining disbursements of that loan can be made.

LSU Health Shreveport allows students to use the multi-year feature of the Direct Loan MPN.  Students with a valid, non-expired, Direct Loan MPN on file with the Direct Loan Servicing Center do not need to complete a new MPN. Previous Direct Loan borrowers may log into www.studentloans.gov  and click on “Completed MPNs” under “My Loan Documents” to check the status of their existing MPN. To apply go to www.studentloans.gov.

STUDENT LOAN COUNSELING 

Entrance Counseling

All Federal Direct Loan borrowers, except Parent Plus Loan borrowers, must complete entrance counseling requirements before being awarded a federal loan. This helps the borrowers to understand their rights and responsibilities regarding their loans. LSU Health Shreveport requires borrowers to complete this requirement online at www.studentloans.gov. Federal Perkins Loan borrowers will receive instructions on how to complete the entrance counseling requirement for Perkins from the Bursar’s Office prior to the loan being disbursed.

Exit Counseling

All borrowers must complete exit counseling requirements upon leaving the institution.  This helps borrowers to understand their rights and responsibilities regarding repaying their federal loans. The Financial Aid Office will send instructions on how to complete the exit counseling requirement for Federal Stafford loans when the student withdraws from the institution, goes on an approved leave of absence, or prior to graduation. Federal Perkins Loan borrowers will receive information from the Bursar’s Office regarding instructions on completing the exit loan counseling requirements for Perkins. For more information on student loan repayment visit the Financial Wellness and Debt Management section of the Financial Aid Office website.

CREDIT BASED EDUCATIONAL LOANS

Credit-based loans are non-need based educational loans that students can borrow to assist with unmet educational expenses after federal aid has been applied.  These loans may have higher interest rates. The amounts that a borrower can receive, interest rates, and repayment terms vary among lenders. Students must complete a FAFSA (Free Application for Federal Student Aid) first before applying for all credit based loans except the Federal Parent Plus loan.  Financial Aid staff will not certify a credit based loan for a student until the student has received all federal aid that is available. There are three types of credit based loans: 

Federal Direct Grad Plus
The Federal Direct Grad Plus loan is a credit based loan for graduate and professional students. Students can borrow up to their total cost of attendance minus any other financial aid the student is receiving.  Repayment begins 6 months after graduation or the student decreasing to a less than half time attendance status.  The Grad Plus loan can be included in a federal student loan consolidation. 

Federal Direct Parent Plus
The Federal Direct Parent Plus loan is a credit based loan for the parents of undergraduate students.  Parents can borrow up to their dependents students cost of attendance minus any other financial aid the student is receiving.  Repayment begins immediately unless the parent contacts the servicer for the loan and request a deferment.  If the parent is unable to secure a Direct Plus loan, the undergraduate student may be eligible to borrow additional Unsubsidized loan funds.  

Private Lender Educational Loan
Private educational loans are offered by a variety of different lenders. Students can borrow up to their total Cost of Attendance minus any other financial aid the student is receiving.  Repayment terms, interest rates, and fees can vary by lender.  Students are encouraged to use a cosigner to help ensure that they qualify for the best terms available. Borrowers are strongly advised to contact each lender that they are considering to determine the exact terms, conditions and availability of individual incentive programs.

RESIDENCY and RELOCATION LOANS (For Medical Students Only)

Consumer loans are available to medical school seniors to assist with residency interviews and relocation after graduation. The amounts, interest rates, fees, and repayment terms vary among lenders.  Students should use caution when applying for Residency and Relocation loans and beware of the amount of total debt (federal and personal) that the student will accumulate.  These loans may have higher interest rates, cannot be consolidated with federal consolidation loans, and do not have the same deferment, repayment, and cancellation terms as federal student loans.  Residency/Relocation loans are non-educational loans and are not certified by the Financial Aid Office. LSU Health Shreveport cannot recommend a lender nor assist students with the application process for these loans.  Student wanting to borrow a Residency and Relocation loan are advised to thoroughly research all loans and lenders that they are considering before applying.

STUDENT LOAN REPAYMENT INFORMATION

The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov.

For more information click on the following topic:

• Repayment plans and Calculators 
• Public Service Loan Forgiveness
• Postponing Repayment
• Loan Consolidation 
• Federal Student Loan Omsbudsman
• Private Lender Student Loan Complaint

Louisiana State Loan Repayment Program
The purpose of the Louisiana State Loan Repayment Program is to encourage primary care practitioners to serve in Health Professional Shortage Areas. For the purpose of recruitment under this program, eligible primary care practitioners include those who are specialty board certified or have completed a residency in family practice, osteopathic general practice, obstetrics/gynecology, internal medicine, pediatrics, psychiatry, or dentistry. Mid-levels include physician assistants, advanced nurse practitioners, and nurse midwives. The mission of the program is to alleviate, and ultimately overcome, the state's problem of a substantial mal-distribution of primary care health professionals in rural and inner city areas.  For more information, visit http://dhh.louisiana.gov/index.cfm/page/1195.

Federal Student Loan Omsbudsman
Students should make every effort to resolve loan disputes with the school, lender, and/or servicer for their loan.  If no satisfactory resolution can be reached, students should contact the Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education (ED). The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about federal student loans. Contact the Ombudsman Group as a last resort.

GENERAL INFORMATION

https://studentaid.ed.gov/repay-loans/disputes/prepare

Prepare to Dispute - https://studentaid.ed.gov/sites/default/files/ombudsman-information-checklist.pdf

File a Dispute - https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

Private Lender Student Loan Complaint
Contact the lender for the private education loan for assistance with any disputes.  If no satisfactory resolution can be reached, students can file a complaint with the Consumer Financial Protection Bureau.  http://www.consumerfinance.gov/complaint/

Federal Direct Subsidized Loan

Direct Stafford Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education at participating schools.

Direct Subsidized Loans are for undergraduate students with financial need. Students are required to complete the Free Application for Federal Student Aid (FAFSA). The Student Financial Aid Office will review the results of the FAFSA and determine the amount that can be borrowed.  Interest is not being charged while in school at least half-time.

In addition to the FAFSA, the following must be completed:

       1. Direct Loan Master Promissory Note (MPN)
       2. Direct Loan Entrance Counseling Session

The application process can be found here Application Process.

Federal Direct Graduate PLUS Loan

The Graduate Plus loan is an unsubsidized loan for graduate/professional students and can help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

The terms and conditions applicable include:

• a determination that the applicant does not have an adverse credit history (example - bankruptcy, foreclosure, tax lien, or loan default)

• a fixed interest rate

• a credit check that is valid for 90 days if performed prior to March 29, 2015

• a credit check that is valid for 180 days if performed on or after March 29, 2015

• Students are required to complete the Free Application for Federal Student Aid (FAFSA). The Student Financial Aid Office must determine the maximum eligibility for Direct Subsidized and Direct Unsubsidized Stafford Loans prior to awarding Grad Plus loans.

In addition to completing the FAFSA, the following information is required to be completed: 

1. Direct Loan Grad Plus Master Promissory Note (MPN)
2. Direct Loan Graduate Entrance Counseling
3. LSUHSC Grad Plus or Parent Plus Request Form

The rules for defining adverse credit history will change effective March 29, 2015.  This applies only to outstanding balances of combined debts greater than $2,085:

• one or more debts are 90 days delinquent
• debts in collection
• accounts charged off in the previous two years

Applicants who are determined to have adverse credit history on or after March 29, 2015, but who qualify for a Direct PLUS loan by documenting extenuating circumstances or obtaining an endorser must complete additional PLUS loan counseling.  The applicant will be notified at the time of the credit decision of how the additional loan counseling should be completed.

The application process can be found here Application Process.

Credit Based Educational Loans from Private Lenders

Credit-based loans from private lenders are non-need based educational loans that students can borrow to assist with unmet educational expenses, after federal aid has been applied. These loans may have higher interest rates. The amounts that a borrower can receive, interest rates, fees, and repayment terms vary among lenders. 

Students must complete a FAFSA (Free Application for Federal Student Aid) first before applying for all credit-based loans, except the Federal PLUS Loan. Financial aid staff will not certify a credit based loan for a student until the student has received all federal aid that is available.  Graduate or Medical students should consider Federal Grad Plus loans before applying for a private lender educational loan.  Although based on credit as well, Grad Plus loans are federal educational loans and eligible for similar borrower benefits as the Direct Federal Stafford program.  Federal Grad Plus loans can be included in a Federal Consolidation Loan.  Pre-approval is available online for all credit-based educational loans.  Borrowers are strongly advised to contact each lender that they are considering to determine the exact terms, conditions, and availability of individual incentive programs.