Loans

Student loans are a form of financial aid that must be repaid. Most are offered at low interest rates with repayment deferred until after graduation.

Participants in any loan program must be enrolled at half-time status or more. It is important to note that if a student drops below half-time status during the semester, all or a portion of their loan funds received for that semester may be returned to the lender. This may result in the student owing money to Saint Mary’s, if the university has to refund the money. The student will owe money to the lending institution, if the student has received a refund check.

Students in graduate-level programs are eligible to apply for the Federal Direct Loan (also known as the Federal Stafford Loan) subject to approval by the Financial Aid Office of Saint Mary's. A Free Application for Federal Student Aid (FAFSA) must be completed.

Types of Loans

Direct Subsidized Loans are available to undergraduate students with financial need. Saint Mary's determines the amount you can borrow, and the amount may not exceed your financial need.

Eligibility
  • Financial need as determined by the FAFSA
  • Minimum of half-time status
  • U.S. citizen or eligible noncitizen
  • Not in default on any student loan
  • Degree seeking
  • Undergraduate student
     
Repayment

The U.S. Department of Education pays the interest on a Direct Subsidized Loan:

  • while you're in school at least half time,
  • for the first six months after you leave school (referred to as a grace period), and
  • during a period of deferment (a postponement of loan payments).
     
Loan Amount
  • Click here to see the allowed amounts of Direct Subsidized Loans you are eligible to borrow.
  • Actual amount is based on cost of attendance.

Direct Unsubsidized Loans are available to undergraduate students; there is no requirement to demonstrate financial need.

Eligibility
  • Minimum of half-time status
  • U.S. citizen or eligible noncitizen
  • Not in default on any student loan
  • Degree seeking
     
Repayment
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
     
Loan Amount
  • Click here to see the allowed amounts of Direct Unsubsidized Loans you are eligible to borrow.
  • Actual amount is based on cost of attendance.

Institutions that enter into an agreement with a potential student or parent of a student regarding a Title IV loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by servicers, guaranty agencies, lenders, and institutions determined to be authorized users of the data system.  Students can access their information as well at www.nslds.ed.gov

In compliance with federal regulations under HEOA Sec. 489 amended Sec. 485B (d) (4) (20 U.S.C. 1092b) the College is required to notify you that approved loans will be submitted to the National Student Loan Data System (NSLDS) by the U. S. Department of Education and will be accessible by servicers, guaranty agencies, lenders, and institutions determined to be authorized users of the data system as determined by the U. S. Department of Education.

Terms and conditions
Terms and conditions of Title IV, HEA loans Terms and conditions of Federal Student Loans are listed on the Master Promissory Note signed by a borrower accepting the loan. The Stafford Promissory Note is completed online through www.studentloans.gov.

Before receiving a student loan, borrowers must complete an online entrance counseling session. This interactive counseling session will help you understand:

  1. How the loan process works;
  2. Managing your education expenses;
  3. Other financial resources to consider to help pay for your education; and
  4. Your rights and responsibilities as a borrower.

The online entrance counseling session will take you approximately 15-30 minutes to complete. To get started:

  1. Go to www.studentloans.gov
  2. Log in using your FSA ID username and password
  3. Select "Complete Counseling"
  4. Select "Start Entrance Counseling".
  5. Select “Minnesota” and “Saint Mary’s University of Minnesota” from drop down boxes.
  6. Select “Notify This School.”
  7. Select Student Type and Continue
  8. Complete entrance counseling by answering all questions
  9. Click “Submit”
  10. Print the Entrance Counseling for your records.

The Federal Stafford Loan and Federal Direct Loan Exit Counseling is used when a student has borrowed in a federal loan program and has dropped below half time status (please see definition listed below).

It is mandatory that this counseling information be completed by students in order to receive their rights and responsibilities of repaying their student loans.

Please click on the Federal Stafford and Federal Direct Loan Exit Counseling link in order to complete the exit counseling.

*Please note: It does not matter which loan program (Federal Stafford Loan or Federal Direct Loan) you have borrowed from. The exit counseling is the same for both programs.

Federal Stafford & Federal Direct Loan Exit Counseling

*Half-time status is defined as the following:

  1. Graduate students must maintain the following: a minimum of 4 credits per term or an equivalent to this OR if you are registered by a learning contract, you must maintain one credit per month of your contract. (Example: 7-month contract must have at least 7 credits in order to be half-time)
  2. Undergraduate students must maintain the following: a minimum of 6 credits per term.

Grants

Grants are a form of financial aid that does not need to be repaid.

Types of Grants

The Federal Pell Grant is available for undergraduate students who have not yet earned a bachelor's degree. Eligibility is determined based upon the FAFSA, cost of attendance, and enrollment level. Students attending less than full time will receive prorated amounts. The available amount changes yearly.

The Minnesota State Grant is available for undergraduate Minnesota residents. Eligibility is determined by the Financial Aid Office based upon the State Grant award formula. The available amount changes yearly.

The Minnesota GI Bill is available for undergraduate and graduate students. Eligible students include Minnesota veterans and service members as well as eligible spouses and children of deceased or permanently disabled eligible Minnesota veterans. Eligibility is determined by the Financial Aid Office based upon the Minnesota GI Bill award formula.