Manhattan School of Music participates in the William D. Ford Federal Direct Loan program, based on the passed Student Aid and Fiscal Responsibility Act (“SAFRA”) legislation, in which borrowers obtain loan funds directly from the U.S. Department of Education. See a detailed description of Federal Direct Loans below.
Federal Direct Stafford Loan
Stafford Loans are either Subsidized or Unsubsidized:
- A Subsidized Stafford Loan is awarded on the basis of financial need. Interest does not accrue as long as a student maintains at least half-time enrollment. Payments are also deferred as long as a student maintains at least half-time enrollment.
- An Unsubsidized Stafford Loan is awarded regardless of a family’s demonstrated financial need. Interest accrues while the student is enrolled. Payments are deferred as long as a student maintains at least half-time enrollment.
Students accepting Stafford Loan(s) on their Financial Aid Notification Letter will have their loan data electronically transmitted to the Office of Financial Aid. The US Government has origination fees that apply to these loans. For loans disbursed on or after 10/1/19 and before 10/1/20, the origination fee is 1.059% of the total amount of the loan. For loans disbursed on or after 10/1/20 and before 10/1/22, the origination fee is 1.057%. This percentage will be deducted from your loan automatically by the federal government before releasing the loan funds to MSM.
All first-time borrowers are required to sign a Master Promissory Note (MPN) and complete Entrance Counseling (EC) at www.studentloans.gov before funds can be released.
All returning and new borrowers must return a signed copy of the Financial Aid Award Letter to the Office of Financial Aid to accept or decline their loans. Once these items are completed, the loan will be set for disbursement on dates established by Manhattan School of Music. The funds will be electronically transmitted to Manhattan School of Music and will be applied to your account within three business days.
Stafford Loan Borrower Limits
- Subsidized Stafford Loan: Undergraduates may borrow up to $3,500 in their freshman year, up to $4,500 in their sophomore year; and up to $5,500 in their junior and senior years. All undergraduate Dependent students are also eligible for a $2,000 Unsubsidized Stafford Loan. Graduate students are not eligible for a Subsidized Stafford Loan.
- Unsubsidized Stafford Loan: Independent undergraduates can borrow up to $4,000 in their freshmen and sophomore years, and $5,000 in their junior and senior years. If a Dependent student’s parents are denied a Federal Direct Parent PLUS Loan, they are eligible for these additional unsubsidized amounts. Graduate students may borrow up to $20,500 in a Federal Direct Unsubsidized Stafford Loan.
Federal Direct PLUS Loan
Federal Direct Parent PLUS Loans are federal loans granted in the parent’s name to assist with the expenses for Dependent undergraduate students. Graduate students may apply for the Federal Direct Graduate PLUS Loan in their own name. PLUS Loan amounts may cover up to the Cost of Attendance (COA) minus any financial aid received. The maximum PLUS Loan amount is determined by Manhattan School of Music. A credit check determines eligibility for this loan, which may be performed prior to applying. Both the loan applicant and the Office of Financial Aid will be notified of the credit check results. Once the credit check is received, we will initiate the certification process for approved applicants. Applicants will have their loan data electronically transmitted to the Office of Financial Aid.
The US Government has origination fees that apply to these loans. For loans disbursed on or after 10/1/19 and before 10/1/20, the origination fee is 4.236% of the total amount of the loan. For loans disbursed on or after 10/1/20 and before 10/1/22, the origination fee is 4.228%. This percentage will be deducted from your loan automatically by the federal government before releasing the loan funds to MSM.
To apply for a Direct PLUS Loan, visit www.studentloans.gov. All borrowers are required to reapply each year and have a new credit check run. All returning and new borrowers must return a signed copy of the Financial Aid Notification Letter to the Office of Financial Aid. All first-time borrowers are required to sign a Master Promissory Note (MPN) at www.studentloans.gov before funds can be released.
Once these items are completed, your loan will be set for disbursement on dates established by Manhattan School of Music. Your funds will be electronically transmitted to MSM and applied to the student’s account within three business days. If there are excess loan proceeds after all billed charges have been satisfied, we will ask you if you want those funds released to you, the student, or held for future charges with the Office of Student Accounts.
A parent or graduate borrower who does not meet the credit requirements to qualify for a Federal Direct PLUS Loan can either appeal the credit decision or secure an endorser (or co-signer). If you choose to appeal the decision, please contact Student Loan Support Services at 1-800-557-7394 to initiate the appeal process. All PLUS Loan borrowers who do not initially meet the credit requirements are required to complete PLUS Loan Counseling at www.studentloans.gov if their credit appeal is accepted or they secure an approved endorser.
