Student Loans

Applying For and Receiving Financial Aid

Read this before applying for aid:

Credit requirement! Please be aware that graduate students must be enrolled for a minimum of six credits each semester in order to qualify for a student loan. Scholarships and fellowships require students to carry at least nine credits per semester.
Apply early! Because of complex federal requirements, it can take four to eight weeks to process an accurate application. (In some cases an application can be processed in one to two weeks.) Errors will delay an award even more. Please apply in time to meet financial aid deadlines.
Apply for a PIN online at www.pin.ed.gov. This can save time by allowing the entire application to be completed online.
Apply for admission. It is necessary to be fully admitted (matriculated) into a USU degree-granting program before the student can be awarded.
Check your email. That's where USU will send notification of unmet requirements and of the award. It is possible to log onto USU Access and enter or update a current email address that USU is to use.
Getting married is tricky: If a student is planning on getting married, it is usually better to wait and file after the marriage has taken place. For more details, a financial aid counselor may be contacted.
Be aware of privacy restrictions: In order to allow a third party (including parents or spouse) to have access to a student's financial aid information, USU requires written permission from the student.

Yearly Application Checklist

Collect the necessary documents. Please be aware that graduate students are not eligible for Pell Grants, although all students are required to complete the FAFSA in order to qualify for student loans. A pre-application worksheet may be printed before beginning the FAFSA. If the applicant doesn't have a copy of a federal tax form, it is possible to request a transcript of a previous return from the IRS by calling 1-800-829-1040.
- A Social Security Number
- A driver’s license (if any)
- A CURRENT YEAR W-2 Forms and other records of money earned
- The applicant's (and his or her spouse’s, if married) Federal Income Tax Return
  - IRS 1040, 1040A, 1040 EZ
  - Foreign Tax Return, or
  - Tax Return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Island, the Marshall Islands, the Federal States of Micronesia, or Palau
- The applicant's parents’ CURRENT YEAR Federal Income Tax Return (if he or she was claimed as a dependant student)
- All CURRENT YEAR untaxed income records
  - Veterans benefits records
  - Child support received
  - Worker’s compensation
- All current bank statements
- Any current business and investment mortgage information, business and farm records, stock, bond and other investment records
- Alien registration or permanent resident card (if you are not a U.S. citizen)

Complete the FAFSA on the web.
(FAFSA is the Free Application for Federal Student Aid). A student can receive a Student Aid Report (SAR) - by email if an email address is provided. A record of this should be kept. USU school code for the FAFSA is 003677. Paper applications are available through the Financial Aid Office, but applying through the mail is much slower and more prone to error and delay. The student must re-apply for financial aid each academic year that assistance is requested. When completing the FAFSA:
           o   Housing status should be accurately reported (on/off-campus or living with relatives).
           o   Correctly list the class schedule. List it according to the number of credits that will
                have been earned before the first semester in 2009-10.
           o   Select all the types of aid that are of interest. A loan can always be turned down later.

Complete other requirements.
If a student is selected for verification (a routine review of the FAFSA), notification will be sent by email or letter. A verification form will need to be completed and it may be required to submit copies of federal taxes. Once verification is complete, USU will submit any necessary corrections before awarding the student.
Reviewing and accepting the award.
Once the student receives an award notice, log into USU Access to review and accept the award. If accepting a student loan, be sure to have completed the additional steps noted below.

Additional Steps to Receive a Student Loan

After accepting a Stafford or Perkins loan on USU Access, there are a few more steps:

Enroll in at least six credits in a degree-seeking program. For part-time MBA students, the MBA office will register you for your courses. This is done approximately one month prior to the beginning of each semester.
Complete loan Entrance Counseling. This only needs to be done once at USU.
Choose a lender for the Stafford loan and complete a loan promissory note each time a new lender is chosen (see below).
For Perkins Loans: If Perkins loan is awarded and the student needs to sign a promissory note with USU, a requirement will be shown on USU Access under Financial Aid Status (look for "unsatisfied student requirements"). Click on the link to download the promissory note, complete the form and submit it to the Registrar’s/Cashier’s Office.

For Stafford Loans, there are several lender and promissory note options:

Option One: UHEAA Lenders

USU does not have a preferred lender list; however, nearly all USU students choose lenders who work with the nonprofit UHEAA Utah Higher Education Assistance Authority. To the best of our knowledge, UHEAA offers some of the best borrower benefits in the country and provides excellent service. Students can choose from local and national lenders when they sign their Master Promissory Note. All lenders associated with UHEAA offer similar terms and borrower benefits including zero-fee loans. UHEAA is now a Stafford loan lender.

UHEAA partner lenders include local credits unions. UHEAA is also a Stafford loan lender. Please note: Credit unions can only lend to students who open an account with them.

If the student wishes to choose a UHEAA lender, simply accept the loan on USU Access. We will certify the loan and UHEAA will notify the student if he or she needs to sign a promissory note.

For further information on UHEAA’s partner lenders repayment benefits, visit www.uheaa.org or call 1-877-336-7378.

Option Two: Other Lenders

After accepting a Stafford loan on USU Access, please contact the financial aid office to set up a Stafford loan with the lender of choice. Not all non-UHEAA lenders process loans electronically which may delay the receipt of loan funds. The student will lose out on UHEAA's borrower benefits which are among the best in the nation. It may also be necessary to contact the lender directly to sign a master promissory note.

Stafford Loan Lenders

Students can borrow from any lender that participates in the Stafford Loan program.

Which lender to choose?

To borrow Stafford loans, a student must choose a Stafford loan lender and sign a promissory note. Processing fees and repayment benefits vary from lender to lender but the interest rates are always the same. USU does not have a preferred lender list; however, most USU students choose lenders who partner with the nonprofit UHEAA (Utah Higher Education Assistance Authority) to provide Stafford loans.

Is it possible to switch lenders?

Yes. If more than one lender is used during the pursuit of a degree and both sell to the student loan servicer (such as UHEAA,) there will be little or no difference in how the loan is repaid. If they sell to different student loan servicers, the student may end up making two sets of payments. This does not increase your total payments, but it will complicate things for the student.

If the student chooses a UHEAA partner lender and stays with that lender, it may be neccesary to sign only one promissory note (called the Master Promissory Note) for his or her entire college career. This speeds up the processing time for student loans in future years. Changing lenders will still be possible but will require the student to sign a new promissory note.

What about non-UHEAA lenders?

Students can borrow from any lender that participates in the Stafford Loan program. Some non-UHEAA lenders do not disburse their funds electronically to Utah State, so it may take longer to process and receive the loan if using one of these lenders. Processing fees and repayment benefits vary from lender to lender but the interest rates are always the same. If choosing to use an out-of-state lender, the student must contact the USU Financial Aid Office when accepting the Stafford loan on USU ACCESS.

Please note: Starting July 1, 2009 most lenders will begin charging 1.5% in origination and guarantee fees. These fees are deducted from the loan before disbursement.

Completing the UHEAA Promissory Note

If this is the first loan with UHEAA, the student should receive a notice within 10 days (see note below) of accepting the loan. The notice from UHEAA will give instructions for going on-line to complete a promissory note. This is where the student will select a lender. If a student has borrowed a Stafford loan previously and the previous lender has a valid Master Promissory Note, it will not be necessary to sign another promissory note to receive a loan.*

UHEAA sends notices for the upcoming school year starting in July.

*Update: Students who borrowed loans through Zions Bank or Mountain High Federal Credit Union will need to sign a promissory note with a different lender. Chase, Key Bank, and Wells Fargo are no longer UHEAA partner lenders. Students who still wish to use these lenders will have to contact them directly to sign a new promissory note.

During the school year, a promissory note can be completed online.

5-7 business days after accepting the loan on USU Access, go to uheaa.org.
Click on “Account Access.”
Click on “Create an Account.”
Provide the requested information.
Select “Your Stafford MPN is available for completion.”
Follow instructions to completion.
To sign electronically, a FAFSA PIN number will be needed.
For problems, phone UHEAA toll-free at 1-877-336-7378.

On the first day of class, or 7-10 business days after completing a promissory note, the Stafford loan should be able to pay toward balanced owed to the school and forward any remaining funds to the student.

What to Do After Financial Aid Has Been Awarded

Register for classes.
Before receiving financial aid, a student must be enrolled in classes. Loans require at least six credits of enrollment. Year-long independent study classes do not qualify for financial aid. USU approved study abroad programs may qualify for aid.
Check account charges - Don't lose any classes.
All accepted financial aid funds will be automatically applied to Banner charges. Check the account summary on USU Access after accepting financial awards. If the balance owed is more than the estimated financial aid, the balance must be paid before the fee-payment deadline to prevent classes from being dropped. Please note: loans require additional steps.
Receive remaining funds by mail or direct deposit.
If the student has any remaining financial aid funds, a check will be sent to the mailing address that USU has on Access during the first week of class. Or, the student can arrange to have the funds deposited a checking account by setting up direct deposit on USU Access (after logging in, select "Personal Information" then select "Update Direct Deposit" to provide the requested information. Remember to save.)

Private Education Loans (Alternative Loans)

Federal loans may not be enough to cover all school-related expenses. After having received all of the federal loan eligibility, it may be beneficial to consider applying for a private education loan (also called an alternative loan). Here are some things to know before borrowing a private education loan:

Most private education loans charge higher interest than Stafford or Perkins loans.
Each private education loan has its own unique terms and conditions.
Most private education loans require at least 6 credits and an eligible cosigner.
Private education loans cannot exceed the total cost of attendance including grants, loans, scholarships, and other financial resources.

There are many lenders who participate in this type of funding. The Utah State University Financial Aid office does not endorse any specific lenders. We provide the links below as places to start in your search for additional loan funding. Please take the time to carefully research the terms and conditions of each lender before deciding on which alternative loan to borrow.

ELMSelect.com offers an up-to-date comparison of USU's five most used private education loan programs.

SimpleTuition.com offers an up-to-date comparison of several private education loan programs.

FinAid.org offers a comprehensive overview of private education loan programs.

For any general questions about private education loans, contact a financial aid counselor for assistance. For specific details, contact the private education lender directly.

International students please note: Private education loans for international students generally require a US Citizen Cosigner.