Loans

A federal loan is a loan, not a grant. Before you borrow, make sure you can afford the monthly payment. You must repay the funds you borrow, any fees associated with the loan, and any interest that accrues on the loan. All fees are deducted from your loan prior to disbursement. However, you remain responsible for repaying the entire loan amount.

Minneapolis College’s 3-year cohort default rate for 2021, the most recent year available, was 0.0% (due to the payment pause). For information about the national average Cohort Default rate, as well as specifics by institution type, visit Federal Student Aid’s default management site.

For additional information about your loans visit the Federal Student Aid site and find topics like how to manage your spending, plans to repay, loan default, making your finances a priority, Financial Awareness Counseling and more.

• You have to submit a FAFSA
• If your award letter says you have qualified for a student loan, you have to take additional steps before you have the loan
• You must pay back the loan after you leave college
• The loan process to apply for and have your loans approved will take approximately 3 weeks
• You choose whether or not to accept all or part of the loan
• Loans cannot post to your student account until the first disbursement date of the term

To be eligible to borrow federal student loans you must be

• Enrolled in an eligible degree, diploma, or certificate program
• Register for at least 6 credits per semester
• Making Satisfactory Academic Progress

You will complete loan Entrance Counseling, Master Promissory Note, and Exit Counseling at studentaid.gov . Log in with your FSA ID (used to complete the FAFSA) and use the Minneapolis College school code (002362) to complete these steps.

1. Submit a FAFSA.
2. Check your award notification to see if you have been awarded Federal Direct Loans.
3. Complete Entrance Counseling online at Studentaid.gov, unless you have done so for a previous loan.    
4. Sign a Subsidized / Unsubsidized Master Promissory Note on Studentaid.gov using your FSA ID, unless you have done so for a previous loan.
5. Request the amount you would like to borrow via eServices. Be sure to request your loan for the entire year if you will be attending Minneapolis College spring semester.
6. Every loan has two disbursements. Loan amounts for which you qualified but did not borrow can be borrowed for the following summer term.
7. Stafford Loans are submitted to the National Student Loan Data System (NSLDS) and accessible by authorized agencies, lenders and institutions.

All steps must be completed by the following dates:

Spring 2024: April 29, 2024
Summer 2024: July 19, 2024
Fall 2024: December 6, 2024

• On government student loans, you do not have to make payments while you are in school at least half-time.
• The normal repayment time of Stafford loans is 10 years and the minimum monthly payment is $50.
• After you graduate, leave school or drop below half time, you will have a 6-month grace period before the first payment is due. 
• Interest on an unsubsidized loan is added to the principle balance of the loan when you graduate. You can avoid this by choosing to pay the interest while you are in school.
• If you are returning to school and have been repaying loans, you could be eligible for a deferment, which means you don’t have to make payments while in school again.
• Repayment Estimator is designed for students who are about to go into repayment or are currently repaying on their student loans. It is your guide for everything you need to successfully manage your student loan repayment process. From repayment options to forms, to an Electronic Loan Counselor. Create an account today and asses your loan history in a secure, online environment.

If you are having issues with your student loan lender or servicer, the Student Loan Advocate with the Minnesota Department of Commerce is here to help.  To file a complaint or for more information, please visit their webpage.

A PLUS loan is taken out by the parents of a dependent student. The interest rate is variable, but not more than nine percent. The first repayment is due within 60 days; there is no grace period while you are in school.

• Apply for a Direct PLUS Loan

Commercial banks and lenders have student loan programs as well. Their student loans often do not have to be repaid while in school, but the interest rates and policies are usually not fixed (so may go up over time) are often not as favorable. Compare rates, fees and policies before borrowing. 

FASTChoice helps you request the loan you determine is right for you by providing detailed information for various loans, as well as the terms and benefits offered by different lenders. Students do not need to choose one of these lenders. A student may choose any lender who participates in the Private Student Loan Program.

• View the criteria for lenders in FASTChoice and Code of Conduct

Borrowers with federal student loans in default will be able to reenter current repayment status and have other federal student aid benefits and protections restored that will increase their long-term repayment success. 

For the most accurate and up to date information regarding the Fresh Start Program please visit the federal student aid site. 

You can also view the Fresh Start Fact Sheet with additional information by downloading the PDF here.

Student Aid will reach out to loan holders in the coming months with additional information about what steps you will need to do. In the meantime, make sure your loan holder has your most up-to-date contact information so you don’t miss important messages about Fresh Start. 

If you don’t know who holds your loan, reach out to the Default Resolution Group at this link.