Hello, I’m trying to figure out something right now. So I was awarded my financial aid package back in April. I accepted the Federal Stafford Loan, The unsubsidized loan and also the Parent PLUS loan. I did entrance counseling for federal Stafford loan and the unsubstantiated loan. I just completed the MPN. Now, my question is what is next? I emailed my counselor to ask him will it be processed in time by August 3rd (bill due), but I’m freaking out cause I’m not sure if it will. Will I have to pay out of my pocket if it doesn’t get processed? Thank you.
Sorry, I mean unsubsidized loan, not unsubstantiated
Unfortunately, no one here is going to be able to answer your question with any certainty. We do not work in your school’s financial aid office, and have no clue what the processing time is like for your school. While the MPN and Entrance counseling only take 24 hours to be submitted to your school - it is then on the school to link the documents to your loan records and create the loans. If it is not processed in time, you can follow up with your school’s student accounts/bursar’s office to see if there is a payment grace period and if so, what consequences there might be if you do not pay in time (likely a late fee). This is the busiest time of the year for financial aid offices, so it make take at least a few days for your documents and loan funds to be fully processed.
Okay thanks. I filled out the entrance counseling in early May I believe. It is already satisfied/received , according to my financial aid portal. Now I’m just wondering what’s next after the MPN. The reason I ask is because I did some research and apparently a private lender (SallieMae, Discover, etc) will disburse the money into my account? Correct me if I am wrong, but this is after the MPN is processed to my school?
The Stafford subsidized/unsubsidized loans funds will be sent to your school to be disbursed to your account (usually on the first day of fall classes) as soon as all of your requirements are met, which includes the Entrance Counseling and MPN. When you are finished with school or if you drop below a half-time student (typically below 6 units), you will begin a 6 month grace period before you have to begin repayment of your loans. When you start this repayment process, you will be working with one company (example: Navient, Great Lakes, Nelnet) to pay back your loans. This company is called the servicer - and they are hired by the Dept. of Education to manage the payments you send in for the loan money you borrowed while in school.
Thank you so much! I completed both the entrance counseling and the MPN so I think I’m set. My financial aid counselor just emailed me back and answered all my questions. Thanks again, I was really confused and nervous haha
You mentioned a parent Plus loan. Did your parents also apply for this and were approved?
You need to look at your bill and make sure that all costs will be covered with your loans. Or if there will be an out of pocket balance.
We didn’t apply for it yet because my mom wasn’t sure if she was gonna use it or just pay whatever that loan amount is in full. But I talked to my counselor and it’s all cleared up in which we (mum and i) decided that we will pay the amount in full for this Fall semester. Not sure about Spring yet.
All my costs are covered with the loans and the small grants. I have no gap money. Well now I do because I got rid of the plus loan.
As you can see its all confusing and clearly I’m all over the place.
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which we (mum and i) decided that we will pay the amount in full for this Fall semester. Not sure about Spring yet.
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Your mom should still apply for it so that you’ll know NOW whether or not she’ll qualify. It would be terrible if you waited til spring to apply and then find out that she doesn’t qualify.
She can apply now and get approved. But I don’t think she has to take the distribution. maybe @kelsmom can clarify.
Usually on the college’s FA website, there is a calendar of loan disbursement dates. For D1s school, for example, it is the end of August through the first week of September. If you have completed your MPN, then your loan(s) will show as “pending” until the disbursement date.
@mom2collegekids The mom can apply for PLUS, find out if she is approved or not - and then she can easily call the school to cancel the loan.
The parent can apply for the PLUS online, if the school allows the online application. This will allow her to know if she’s approved. The credit check is good for 180 days. The Parent PLUS loan will not (or certainly should not) disburse if the mom doesn’t sign an MPN … she can hold off on that until she decides if she wants to borrow it. Schools have different methods of formal PLUS application, so she should talk to them about what she is planning to do, so they can let her know how to proceed with her request.