Understanding Loans at Ole Miss
While The University of Mississippi wants students to receive all of the grants and scholarships they can receive each academic year, many students will still need to take out student loans to help finance their educational goals throughout their college careers.
About Student Loans
Educational loans are the largest financial resource available to students pursuing postsecondary education, as nearly two-thirds of students attending 4-year institutions will graduate with student loan debt. Student loan programs allow students to borrow money at low interest rates, with no collateral, and generally no co-signer (with the potential exception of Private Student Loans). Additionally, most student loans do not need to be repaid until the student graduates or drops to less-than-half-time status.
Students are reminded that borrowing money for college is a serious financial obligation. In addition to the principal borrowed, interest is generally charged for the use of funds. It is important to remember that when you borrow money it must eventually be repaid. When signing a loan promissory note, you enter into a legal, ethical agreement. Legally, you will be required to sign the note promising to repay the loan. Ethically, you are responsible to future borrowers, since collections from old loans are major funding sources for new loans. Think about this commitment carefully when taking out a loan, and consider how much you reasonably can afford to repay. It’s also important to only borrow “what you need”, which is why students have the ability to decline or reduce their loan offer on their online Financial Aid Award Notification. With that being said, student loan debt, along with mortgage debt have always been known as the best forms of debt to have, as an investment in your education is an investment in your future.
Students should utilize all need-based loans (if eligible) such as Federal Direct Subsidized Loans and some institutional loans before pursuing Federal Direct Unsubsidized and PLUS loans.
How to Apply:
At The University of Mississippi, eligibility for student loans requires that students apply for financial aid using the Free Application for Federal Student Aid (FAFSA). Students and parents of dependent students must obtain a FAFSA PIN to complete the FAFSA. Usually after about a week of completing the FAFSA, the student will receive a Student Aid Report (SAR) that will confirm the information that has been entered on the FAFSA, which is important to review for any errors. Once the application process is complete, the Office of Financial Aid sends each student a Financial Aid Award Notification.
Students accept the loan(s) awarded online. When accepting loans online through MyOleMiss, students will be prompted to select a Federal Direct Loan Master Promissory Note (MPN), and complete the one-time online Federal Direct Loan Entrance Counseling. The Federal Direct Loan MPN is the method for all students to complete promissory notes for their Direct Loans. The initial MPN application may represent the one and only time you are required to complete an MPN. It is good for up to 10 years, granted you do not change schools, or go 12 months or longer without borrowing with that particular lender.
For Direct Parent PLUS, Direct Graduate PLUS and Private Student Loans, the borrower will have to complete a separate online application through the Direct Loan program. We encourage you to explore our websites for each of these loan products to learn more and apply online.