Loans FAQ

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I've been offered federal student loans, how do I accept them?
- To accept loans, see Accepting/Declining Federal Loans.
- First time borrowers need to complete:
  - A Master Promissory Note (MPN)
  - Entrance Counseling

What is a Master Promissory Note, and why do I need it? 
- The Master Promissory Note (MPN) is a legal document in which you:
  - Promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.
  - It also explains the terms and conditions of your loan(s). For more info, go to Federal Loans and scroll down to the How Do I Get My Loans? section.

I accepted my loan; how long will it take for me to receive the money?
- If you have completed your Entrance Counseling and Master Promissory Note
- Federal Loans accepted before the semester starts will disburse in the first 3-5 days of the semester.
- Federal loans accepted later in the semester should be disbursed within 3-5 days

How will I get my loan money?
- Processing loan funds starts on the first day of the semester.
- Allow 3-5 days for federal aid to process.
- When your loan is funded, it follows this process:
  - Loan money is sent directly to your BYU-Idaho student account
- It automatically covers:
  - Outstanding tuition
  - Required Fees
  - On-campus housing charges (Only Center Square and University Village complexes are on-campus housing)
- To automatically cover additional charges, complete the Federal Financial Aid Authorization

 Why was my loan less than what I asked for?
- The Department of Education charges a small fee for processing your loan. This is called an origination fee
- The fee is taken out of your loan amount before you get the money.
- You’ll get less money than you accepted because of this fee
- You still have to pay back the full amount you accepted.

Why did I only receive half of my loan?
- Loans are usually offered in two semester loan periods, (Fall/Winter, Winter/Spring or Spring/Summer)
- The amount you accept will be split between the two semesters
- If you are currently in the second semester of the loan period you will receive the entire amount you accepted but it will come in two different disbursements a day or two apart

When do I have to pay back my student loans?
- You don’t have to start repaying until six months after you graduate
- If you drop below 6 program applicable credits for 6 consecutive months (grace period)

Important details about the grace period:
- The grace period starts the day after you stop attending school at least half-time (6 credits) and ends the day before the repayment period begins.
- Short breaks (like missing a semester) don’t use up the grace period.
- If you return to school within six months and take at least 6 PA credits, you still get the full six-month grace period when you graduate or drop below six credits again.
- You should get a Repayment Schedule during your grace period. If you don’t, contact your servicer. Payments start after the six-month grace period ends.

I'm leaving on a mission, what should I do about my loan?
- Reach out to your lender about deferment options before you leave for your mission. 
- You are required to begin making payments on your student loans if you drop below 6 program applicable credits for 6 consecutive months.

What if I have maxed out my federal loans?
- We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college.
- If you have exhausted all other available resources, alternative/private loans are another resource to help you fund your education.

How do I apply for an alternative/private student loan?
- Process takes up to 30 days:

Apply with private lender
After approved submit the Certification Request Form.
The Financial Aid office evaluates the requested amount.
Allow 10 business days for the school to receive private loan funds and process them.
It may take an additional 3-5 business days before the funds are awarded and disbursed to your student portal.
If the loan is requested and certified before an upcoming semester, the school should receive the funds during the first week of the semester.

Be sure to verify your eligibility and accept all federal student loans before completing the Certification Request Form.

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