Loans

Information about your loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders, and schools determined to be authorized users of the data system. Metro State University's three-year cohort default rate (2019) is 1.3 percent. Federal Student Aid holds data on all institutions' average cohort default rates for U.S. institutions and is available here.

• Federal Direct Loans
• Federal Direct PLUS Loans for Parents
• Federal Direct Grad PLUS Loans
• Private educational loans

William D. Ford Federal Direct Loan Program

Also known as Federal Direct Stafford Loans, these loans require repayment (with interest) over time, which begins when a student drops below half-time enrollment.

Two types of Federal Stafford loans are available to students. Neither requires payment while a student is attending the university at least half-time, but payments made while attending courses can reduce the amount of interest you'll pay when you enter repayment. See the Department of Education's Repayment Calculator to estimate the length of your loan repayment and how much interest you will pay over time.

• Subsidized loans: The federal government pays the interest on these loans while the student is in school, in the grace period and during any deferment periods. Subsidized loans are only available to undergraduates.
• Unsubsidized loans: These loans accrue interest throughout the life of the loan for which the student or borrower is responsible. Interest accumulates and is later added to the principal balance of the loan.

Direct loan interest rates

2022–23 academic year

• 4.99% fixed for subsidized and unsubsidized loans for undergraduate students
• 6.54% fixed for unsubsidized loans for graduate students

Effective Oct. 1, 2020–, Sept. 30,2023, the origination fee is 1.057% deducted by the federal government prior to loan funds being disbursed by the school. Fee example: $58.13 on a $5,500 loan.

Direct loan eligibility

• Students must be fully admitted to the university by the admissions office.
• Students must be enrolled in a degree-seeking program.
• Students must be registered at least half time: 6 credits for undergraduates and 4 credits for graduates.
• Students must be enrolled in courses required for the degree being sought.
• Students must not have previously reached or exceeded any federal loan limits. 
• Students must not have previous federal student loans in default status
• Students must be making Satisfactory Academic Progress

Additional information about the William D. Ford Federal Direct Loan Program and loan limits.

How to apply for direct loans

As with all federal student aid, students must complete the Free Application for Federal Student Aid (FAFSA). After your FAFSA  is processed, the university receives the results within 3 to 5 business days.

The federal school code for Metropolitan State University is 010374.

For more information about what to expect after you complete the FAFSA, check out Applying for Aid. 

Accepting your loans

Unlike grants and scholarships, students must actively accept the offer to borrow a student loan to receive the funds. For the next steps to request loan funds, check out Accepting Your Loans.

Loan proration requirement

If a student is enrolled in a program of less than 30 credits (such as an undergraduate certificate) or will graduate from an undergraduate degree program after attending only one semester of the academic year are required to have their loan pro-rated for that semester. This will result in an adjusted and lower borrowing limitations for the semester.

Programs less than 30 credits will carry freshmen level federal direct student loan annual limits. Students graduating will have loans pro-rated according to a federally mandated formula based on enrolled credits for the term in question, and annual loan limits. If the student's loan offer is subject to pro-ration, then the limit on the loan eligibility for that particular term is determined as follows:

The percent of credits enrolled multiplied by the annual maximum loan limits. 

For example, an independent undergraduate student will graduate after attending only one term in the academic year and during that term is enrolled in 8 credits. In this example, the student is independent, so the annual loan limits are: subsidized $5,500.00, and unsubsidized: $7,000.00. The first step is to determine the percent of credits enrolled. This is completed by dividing the number of credits enrolled (in this example 8) by the total number of credits in an academic year (24): 8/24 = 0.33.

Now that the percentage is determined (0.33), this percentage is multiplied by the annual maximum loan limit(s):

• 0.33 (percent of credits enrolled) × $5,500.00 (annual subsidized limit)
  = $1,833.00 maximum subsidized
• 0.33 (percent of credits enrolled) × $7,000.00 (annual unsubsidized limit)
• = $2,333.00 maximum unsubsidized

Keep in mind that the above example is reflective of an independent student, and that dependent students have different annual loan limits: ($5,500.00 subsidized and $2,000.00 unsubsidized). Proration calculations are done at the time we certify your loan, based on information you provide through the loan request process. This means that a student's award may change from the time of loan acceptance to certification. Students are always informed of the proration via email once it is processed.

Proration amounts by number of credits enrolled

Federal Direct PLUS Loans for Parents

Federal Direct PLUS Loan for Parents is a federal loan option for parents of dependent undergraduate students to help pay for school when Federal Direct Loans are not sufficient to cover educational expenses. Independent undergraduates are not eligible for this loan program. It is recommended that a student applies for their annual loan maximum eligibility under the Federal Direct Loan Program before a parent applies for the Federal Direct PLUS Loan for Parents.

The loan is taken in the parent's name and the parent is responsible for repayment of the loan. The parent will also be required to pass a credit check. Repayment on the Federal Direct PLUS Loan for Parents begins 60 days after the loan is fully disbursed.

Interest rates for PLUS Loans for Parents

• 2022-23 academic year: 7.54% fixed

Effective Oct. 1, 2020–Sept. 30, 2023, the origination fee is 4.228% deducted by the federal government prior to loan funds being disbursed by the school. Fee example: $422.80 on a $10,000 loan.

PLUS Loans for Parents eligibility

Students must meet all requirements listed above for the William D. Ford Federal Direct Loan Program eligibility requirements, in addition to:

• Parent must not be in default on a previous federal student loan.
• Parent must pass a credit check.
• A student must be a dependent undergraduate student.
• A student must have already requested their maximum eligibility under the Federal Direct Loan Program.
• PLUS counseling will be required for students with a denied application that was approved with an endorser or appeal.

Applying for PLUS Loans for Parents

• Log into www.studentaid.gov (The parent will need to sign in to the site using their FSA ID and password, this is the same FSA ID and password used to sign the student's FAFSA.)
• Click "Apply for a Direct PLUS Loan" and select the "Direct PLUS Loan Application for Parents" and complete.
• Go back to home page and click on "Complete Loan Agreement (Master Promissory Note)" and select the "PLUS MPN for Parents."
• Additional information about the Federal Direct PLUS Loan for Parents.

Federal Direct PLUS Loans for Graduate Students

Also known and the Graduate PLUS Loan. This loan program is available to graduate students that need funding beyond their Federal Direct loans. This loan program is not available to undergraduate students. It is recommended that a student applies for their annual loan maximum eligibility under the Federal Direct Loan Program before applying for a Federal Direct Graduate/Professional PLUS loan. The loan is taken in the student's name and the student is responsible for repayment of the loan. This loan will also require a credit check.

Repayment on the Federal Direct Graduate/Professional PLUS loan begins six months after they graduate, leave school, or drop below half-time status.

Graduate PLUS Loan interest rates

• 2022–23 academic year: 7.54% fixed

Effective Oct. 1, 2020–Sept. 30, 2023, the origination fee is 4.228% deducted by the federal government prior to loan funds being disbursed by the school. Fee example: $422.80 on a $10,000 loan.

Graduate PLUS Loan eligibility

Students must meet all requirements listed above for the William D. Ford Federal Direct Loan Program eligibility requirements, in addition to:

• A student must pass a credit check.
• A student must be a graduate student.
• A student must have already requested their maximum eligibility under the Federal Direct Loan Program.
• PLUS counseling will be required for students with a denied application that was approved with an endorser or appeal.

Applying for Graduate PLUS Loans

• Log into www.studentaid.gov (The student will need to sign in to the site using their FSA ID and password, this is the same FSA ID and password used to sign the student's FAFSA.)
• Click "Apply for a Direct PLUS Loan" and select the "Direct PLUS Loan Application for Graduate/Professional Students" and complete.
• Go back to home page and click on "Complete Loan Agreement (Master Promissory Note)" and select the "PLUS MPN for Graduate/Professional Students."

Additional information about the Federal Direct Graduate PLUS Loan.

Private educational loans

Many banks and credit unions provide educational loan options, commonly referred to as private or alternative loans. These loans may have higher interest rates than federal loans and should only be considered as a borrowing option after all federal loan eligibility has been exhausted.

Eligibility for private loans is based on the creditworthiness of the borrower and/or co-signer. Selecting a lender is the sole right of the student. FASTChoice is provided as a way to compare loan options for a number of common lenders and choose the loan that best fits your needs. Metropolitan State University does not endorse any one lender; you may choose any lender you wish that currently offers an educational loan product. The lenders listed on the FASTChoice website are lenders who have most commonly provided private loans to Metropolitan State University students over the past three years. The lender list is updated each spring with the most current information.

Under the Truth in Lending Act rules, private education loans are subject to self-certification, three consumer disclosures at specific times in the application process, and a three-day delay in disbursement. Due to the number of steps involved in the private loan application process, applicants should allow a minimum of three weeks for processing.

This information is intended to be accurate, but the publisher does not assume liability for errors or omissions.

Student Loan Advocacy

The Minnesota Department of Commerce has recently completed the integration of a Student Loan Advocate to their staff as recently as the 2023 Minnesota Legislative session to implement and oversee a student loan borrower complaint process. The Student Loan Advocate may be reached by phone at 651.539.1022 or through their online complaint form. Visit their website which informs students on their rights with regard to student loans and additional information.