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Office of Financial Aid
University of Mississippi

Graduate McKinstry Loan

What are McKinstry Loans?


The George C. and Laura B. McKinstry Loan Fund at The University of Mississippi was established in 1973 by Dr. McKinstry in memory of his mother and father to provide low-interest loans to young men and women of character who have successfully completed at least one semester of college work. Additional preference is given to residents of Jones and Jasper counties in Mississippi. The University of Mississippi is responsible for administering the loan program on our campus. Students repay directly to The University.

McKinstry Loans are need-based aid. Eligibility is based on financial need as determined by federal guidelines. Interest does not accrue on the loan for the student during:

  • At least half-time enrollment in school
  • The nine-month grace period after the student ceases attendance on at least a half-time basis.

Advantages of the McKinstry Loan

  • The interest rate is 5%.
  • It carries no origination and guarantee fees. Many other loans may have fees of 1-4%.
  • Repayment of the loan does not begin until you graduate or drop below half-time status.
  • In cases of economic hardship, payments may be deferred, extended, or reduced.
  • The loan is forgiven in case of death.
  • You may be allowed up to 10 years to repay the McKinstry Loan.

Eligibility for McKinstry Loans


Your McKinstry Loan eligibility is determined by the Office of Financial Aid and is based on information you provided in the Free Application for Federal Student Aid (FAFSA).

Criteria include:

  • Resident of Mississippi
  • Sophomore class level or above.
  • Enrollment in an eligible school at least half-time in a degree program
  • U.S. citizenship, permanent residency, or eligible noncitizen status
  • Satisfactory academic progress (as determined by the Office of Financial Aid)
  • No unresolved defaults or overpayments owed on Title IV educational loans and grants
  • Satisfaction of all Selective Service Act requirements

Loans are usually issued for a single academic year, and both eligibility and amount are redetermined annually throughout your academic career.

Limited McKinstry funds are available each year, so you must submit the FAFSA by the Office of Financial Aid’s recommended priority deadline to ensure consideration for a McKinstry Loan.


Regulation Z Requirements


Private Loan Regulations (Title X of the Higher Education Opportunity Act)


As of February 14, 2010, both private lenders and institutions offering private loans to students must comply with a new set of regulations per the Federal Reserve Board.


Under the new laws, an institution offering private loans for postsecondary educational expenses (i.e. McKinstry Loans, Health Profession Student Loans, etc.) must first provide a disclosure about loan terms and features at the time of application and must disclose information about federal student loan programs that may offer less costly alternatives. If the initial application reaches an approval status, a second loan disclosure statement must be provided to the student at that time. If a student accepts the loan terms provided in the second disclosure statement, athird final disclosure must be provided when the loan is consummated.


An additional piece of the new private loan regulations requires an applicant to complete a “self-certification form” and return it to the institution before the loan may be approved. The “self-certification form” may be found here, then return the completed form to the institution. If you need assistance completing the form, please visit the Office of Financial Aid at Ole Miss.  


Last, an institution must provide the student with a 3 day rescission or “right-to-cancel” period after the final loan disclosure form is sent to the student. The 3 day rescission period means that once the school has certified your loan and it is ready to be disbursed, there is a mandatory 3 business day waiting period before the institution may disburse the loan funds


Below is an example of what to expect if you apply for a private loan:

  • Apply online (you will receive the Application Disclosure Statement)
  • If approved for the loan, you will be provided an Approval Disclosure Statement
  • Complete the Self-Certification Form and return to the institution
  • Finally, you will receive a Final Disclosure Statement
    (allowing you up to 3 days to cancel the loan before it is disbursed)

If you have any questions related to the new regulations, please visit our office.



How Much Can I Borrow?


McKinstry Loans are available for up to $3000 during the academic year. Loans may also be available in the summer based on the level of remaining funds.

Interest Rates


The interest rate is computed at the rate of 5% per annum simple interest on the unpaid balance.



The Application Process


The Office of Financial Aid will make determinations of eligibility. Although you cannot apply specifically for a McKinstry Loan, you will be automatically considered if you do the following:

  1. Complete a Free Application for Federal Student Aid (FAFSA) application online at the Department of Education’s website . Be sure to file by the priority deadline each year (March 15). The University of Mississippi’s school code is 002440.
  2. Students (and parents of dependent students) complete the FAFSA and submit it to the address included in the FAFSA instructions or submit over the web.
  3. Once your FAFSA is processed, you will receive a Student Aid Report (SAR) documenting your financial resources and expected family contribution towards educational costs. An electronic copy will be sent to the Office of Financial Aid of the school listed on your application.
  4. Check your SAR for accuracy. If there are errors, follow the correction process indicated on the SAR or as instructed by the Office of Financial Aid.
  5. From the information obtained in the SAR and other supporting documents, we will generate an online Financial Aid Award Notification documenting the financial aid available to you including McKinstry Loan eligibility.

If your aid includes a McKinstry Loan, processing will include the following steps.

  1. Submit the completed Self-Certification Form.
  2. The student may accept all or a part of the aid by accepting and confirming your Financial Aid Notification online.
  3. The student must complete Loan Entrance Counseling by completing the process on the Web site Ole Miss Online Entrance Counseling. 
  4. Once the Financial Aid Award Notification has been accepted and submitted and Loan Entrance Counseling has been completed, complete the McKinstry Loan Contract which is available online at under the “Check Your Award Status” icon.
  5. Submit the contract by mailing it or returning it in person to the Bursar’s Office.

Disbursements of Funds


The loan proceeds will be processed through the Office of Financial Aid. Funds will credit first to your Bursar bill and any excess funds will be mailed to your permanent address or directly deposited to your personal account.