loan resources

Loan Programs & Borrowing Options

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The following outlines the steps for securing and managing federal student loans at McMurry University. Students are encouraged to review each stage carefully and borrow responsibly.

1. Apply for Financial Aid

Complete the Free Application for Federal Student Aid (FAFSA). Once submitted, the Financial Aid Office will evaluate eligibility for financial assistance, including grants, scholarships, and federal loans. Students will be notified when their financial aid award package is available.

2. Review Your Award in NetPartner

Access your financial aid award through NetPartner.

When reviewing your package:

  • Remember that grants and scholarships do not require repayment.

  • You are not obligated to accept the full loan amount offered.

  • Consider all available payment options, including grants, scholarships, installment payment plans, tuition prepayment plans, and loans.

  • Federal student loans offer borrower protections such as deferment and forbearance options.

Make informed decisions and borrow only what is necessary to meet your educational expenses.

3. Accept, Reduce, or Decline Loans

After reviewing your award, you may:

  • Accept the full loan amount

  • Accept a partial amount based on your needs

  • Decline the loan entirely

To request an adjustment to your loan amount, email the Financial Aid Office at financialaid@mcm.edu.

4. Complete Loan Requirements

Once a loan is accepted, outstanding requirements will appear in NetPartner. These typically include:

Loans cannot be disbursed until all required steps are completed.

5. Loan Disbursement

After acceptance and completion of all requirements, loan funds will be applied directly to the student account on the scheduled disbursement date for the semester.

If a credit balance results, students may request a refund through the Student Accounts Office:

6. Monitor Your Borrowing

Students may review their federal student loan history through the National Student Loan Data System (NSLDS).

Through NSLDS, borrowers can:

  • View federal loan and grant history

  • Access the loan servicer contact information

  • Download federal student aid data using the MyData feature

Regular review helps students stay informed about cumulative borrowing.

7. Complete Exit Counseling

Exit Counseling is required when a student:

  • Graduates

  • Withdraws

  • Takes a leave of absence

  • Drops below half-time enrollment

This requirement ensures borrowers understand repayment responsibilities and available options.

8. Repayment

Federal loans enter a grace period after a student leaves school. Following the grace period, repayment begins.

Students should:

  • Identify their loan servicer

  • Establish online account access

  • Review repayment plan options

Proactive loan management supports long-term financial success.

The student must be enrolled in the current semester.

The Federal Direct PLUS Loan allows parents of dependent undergraduate students to borrow funds to help cover educational expenses not met by other financial aid.

Step 1: Log In to the Federal Student Aid Website

Parents must log in using the FSA ID created to complete the FAFSA.

Please note:

  • The FAFSA and the PLUS Loan application are housed on different websites.

  • Both sites are official U.S. Department of Education platforms.

  • For assistance with your FSA ID or account access, contact Federal Student Aid at 1-800-4-FED-AID (1-800-433-3243).

Step 2: Submit the PLUS Loan Application

Once logged in:

  1. Select “Apply for a PLUS Loan.”

  2. Choose “Complete PLUS Request for Parents.”

  3. Follow the prompts to complete and submit the application.

A credit check is required as part of the application process.

Application Outcomes & Next Steps

✔ Approved

If the parent later decides not to borrow the approved loan, notify the McMurry Financial Aid Office in writing (email is acceptable).

✖ Denied

If the application is denied, the parent has the following options:

1. Do Not Pursue the PLUS Loan

  • The parent accepts the denial.

  • The student will be offered additional Federal Direct Unsubsidized Loan funds (if eligible).

  • No further action is required from the parent.

2. Obtain an Endorser (Co-Signer)

  • The parent secures an approved endorser.

  • The endorser must complete the Endorser Addendum online.

  • The parent must complete PLUS Counseling.

  • The parent must sign the PLUS Master Promissory Note.

  • The student will not receive the loan until the endorser is approved and all requirements are completed.

If the parent later decides not to pursue an endorser, notify McMurry Financial Aid in writing.

3. Appeal the Credit Decision

Parents may appeal the denial due to extenuating circumstances by following the instructions provided on the Federal Student Aid website.

If the appeal is approved:

If the appeal is denied:

  • The student may be offered additional Federal Direct Unsubsidized Loan funds.

  • No further action is required from the parent.

Other Statuses

Undetermined / No Action Taken
If the application remains incomplete or unresolved, it will be treated as a denial. The student may be considered for additional eligibility for an unsubsidized loan.

Important Notice

Parents are not required to borrow a PLUS Loan, even if approved. If you choose to decline an approved loan, please get in touch with the McMurry Financial Aid Office promptly to ensure accurate processing of the student’s financial aid package.

For assistance, contact:
McMurry Financial Aid Office
financialaid@mcm.edu

In addition to federal student loans, students may explore state-sponsored and private (alternative) loan programs to help cover remaining educational expenses.

Private loans are offered by banks and lending institutions and typically require a credit review. Interest rates, repayment terms, borrower benefits, and eligibility requirements vary by lender. Students are encouraged to carefully compare options and exhaust federal aid eligibility before pursuing private loans.

ELMSelect

McMurry University provides access to ELMSelect, a lender comparison tool that allows students and families to:

      • Review participating private lenders

      • Compare interest rates and repayment terms

      • Evaluate borrower benefits and eligibility criteria

      • Apply directly with the lender of choice

ELMSelect is designed to support informed borrowing decisions by presenting lender information in a clear, side-by-side format.

Students considering private loans should borrow conservatively and review all terms and conditions before committing to a loan agreement. For additional guidance, contact the Financial Aid Office at financialaid@mcm.edu.

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dictionary

Student Loan Guidance & Support

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To help you understand key terms related to student loans and financial aid, McMurry University provides a comprehensive Loan Definitions and Glossary.

This resource explains important concepts such as:

  • Annual Percentage Rate (APR)

  • Deferment & Forbearance

  • Grace Period

  • Master Promissory Note (MPN)

  • Subsidized vs. Unsubsidized Loans

  • Servicer

  • And more

Review this glossary to make informed decisions about borrowing and managing your student loans.

 Full Glossary

Student loans must be repaid even if you do not complete your program, are unable to secure employment in your field of study, or are dissatisfied with your educational experience. However, under specific circumstances, federal and state loan programs may offer forgiveness, cancellation, or discharge options.

Types of Forgiveness by Loan Program

Type of Forgiveness / Discharge

Federal Direct Stafford / PLUS Loans

Federal Perkins Loans

Texas B-On-Time (BOT) Loan
Total and Permanent Disability Discharge

X

X

Death Discharge

X

X

Teacher Loan Forgiveness

X

Public Service Loan Forgiveness

X

Perkins Loan Cancellation and Discharge (includes Teacher Cancellation)

X

Graduation GPA Forgiveness

X

Important Considerations

  • Forgiveness or cancellation is not automatic. Borrowers must submit a formal application.

  • The loan servicer determines eligibility.

  • Borrowers will be notified once the request has been reviewed and processed.

  • Regular monthly payments must continue until official approval is granted.

Failure to continue payments during review may result in delinquency.

Application Process

Borrowers must contact their loan servicer to begin the cancellation or forgiveness process. A servicer is the organization responsible for collecting payments and managing your loan during repayment.

Federal Direct Stafford or PLUS Loans

Your loan servicer will:

  • Confirm eligibility requirements

  • Provide the necessary application forms

  • Outline documentation requirements

Borrowers can identify their federal loan servicer by accessing their loan information through the National Student Loan Data System (NSLDS).

For additional guidance, students may contact the McMurry Financial Aid Office at financialaid@mcm.edu.

Interest is the cost of borrowing money. It begins to accrue when loan funds are disbursed or credit is issued. Whether earning interest on savings or paying interest on student loans, personal loans, or credit cards, understanding how interest works is essential to making informed financial decisions.

Key Terms

A clear understanding of standard terms related to interests helps borrowers manage debt effectively.

Principal
The original amount of money borrowed.

Interest Rate
The percentage charged by a lender for borrowing money is applied to the principal balance.

Capitalization
The addition of unpaid interest to the principal balance. This often occurs after periods when payments are postponed, such as during grace periods, deferment, or forbearance. Once capitalized, interest accrues on the new, higher principal amount.

How Interest Works

The total amount repaid over time depends on several factors:

  • The principal (amount borrowed)

  • The interest rate

  • Whether the government pays interest during qualifying in-school or deferment periods (for subsidized loans)

  • The length of repayment

The longer the repayment takes, the more interest accrues.

How to Reduce the Amount of Interest Paid

Borrowers can take proactive steps to limit interest costs:

  • Make payments during in-school, deferment, or grace periods to prevent interest from capitalizing.

  • Enroll in Auto Pay to qualify for an interest rate reduction.

  • Pay more than the minimum monthly payment to reduce the principal balance faster and limit total interest over time.

How Interest Is Calculated

Federal student loans generally use a simple daily interest formula:

Loan Balance × Number of Days Since Last Payment × Interest Rate Factor

Because interest accrues daily, making timely and additional payments can significantly reduce long-term borrowing costs.

For detailed calculation examples, visit the Federal Student Aid (FSA) website.

Interest Rates and Credit Health

Maintaining strong credit is essential. A borrower’s credit history can influence:

  • Loan approval decisions

  • Interest rates offered

  • Credit card terms

Missed payments or high debt levels may result in higher interest rates or credit denial. A positive credit profile can lead to more favorable borrowing terms and long-term savings.

Staying in Control of Interest

To prevent interest from becoming unmanageable:

  • Maintain responsible financial habits to protect your credit rating.

  • Pay more than the minimum payment whenever possible so funds are applied to the principal, not just accrued interest.

Understanding how interest works empowers borrowers to manage repayments and minimize total loan costs strategically.

If you are experiencing financial difficulties, there may be options to postpone or reduce your student loan payments temporarily. These options include deferment and forbearance.

Important Information

  • Postponement is not automatic. You must submit a completed request to each loan servicer.

  • Your servicer will review eligibility and notify you once a decision has been made.

  • You must continue making scheduled monthly payments until approval is confirmed.

  • During forbearance, you are responsible for paying accrued interest.

  • Keep track of the end date of your deferment or forbearance and be prepared for repayment to resume.

Failure to continue payments while a request is pending may result in delinquency.

Deferment

A deferment is a temporary period during which required payments are postponed.

  • Interest does not accrue on Subsidized loans during deferment.

  • Interest does accrue on Unsubsidized loans and must be paid by the borrower.

Eligibility requirements vary by loan program.

Examples of Deferment (Perkins Loans Only)

Unemployment Deferment
Available if you are unemployed or underemployed (working fewer than 30 hours per week), actively seeking employment, or receiving unemployment benefits.

  • Maximum eligibility: 36 months over the life of the loan.

Economic Hardship Deferment
Available if you are working 30 hours or more but experiencing financial hardship.

  • Maximum eligibility: 36 months over the life of the loan.

How to Request a Deferment

For Federal Direct Stafford or PLUS Loans:

Forbearance

If you do not qualify for a deferment but are temporarily unable to make payments, you may request a forbearance.

Forbearance allows your servicer to:

  • Temporarily reduce payments, or

  • Temporarily postpone payments

Interest continues to accrue during forbearance, and you are responsible for paying it.

Types of Forbearance

Discretionary Forbearance
The lender determines whether to approve the request. Common reasons include:

  • Financial hardship

  • Illness

Mandatory Forbearance
If you meet eligibility requirements, your lender must grant the forbearance. Qualifying situations may include:

  • Participation in a medical or dental internship or residency program

  • Monthly federal student loan payments that equal 20% or more of your gross monthly income (additional conditions apply)

  • Service in a national service position with a national service award

  • Teaching service that qualifies for Teacher Loan Forgiveness

  • Eligibility for repayment under the U.S. Department of Defense Student Loan Repayment Program

  • Activation as a National Guard member by a governor (not eligible for military deferment)

How to Request Forbearance

You must submit a request directly to your loan servicer. In some cases, supporting documentation will be required to verify eligibility.

For assistance identifying your loan servicer or understanding your repayment options, contact your servicer directly or consult NSLDS for updated loan information.

Direct Consolidation Loan

Direct Consolidation Loan

A Direct Consolidation Loan allows borrowers to combine multiple eligible federal student loans into one new loan. Consolidation results in a single monthly payment rather than numerous payments to different servicers.

Eligible Loans

Loans that may be consolidated include:

  • Direct Subsidized and Unsubsidized Loans

  • FFEL Stafford Loans

  • Direct and FFEL PLUS Loans

  • Federal Perkins Loans

  • Certain existing federal consolidation loans

Private education loans are not eligible for federal consolidation.

Interest Rate

The interest rate for a Direct Consolidation Loan is fixed and calculated as the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent (0.125%).

For the most current federal interest rate information, visit the Federal Student Aid website.

Repayment Terms

Repayment begins once the consolidation loan is disbursed. The first payment is typically due within 60 days.

  • Repayment terms range from 10 to 30 years, depending on:

    • The total consolidation loan amount

    • Other outstanding education loan debt

    • The repayment plan selected

Important Considerations

Consolidation may reduce your monthly payment by extending your repayment term. However:

  • Extending repayment increases the total number of payments made.

  • You may pay more in total interest over the life of the loan.

If you do not need immediate payment relief, compare the long-term cost of consolidation with the cost of keeping your loans separate.

Once loans are consolidated:

  • The original loans are paid off and no longer exist.

  • The consolidation cannot be reversed.

Carefully review the advantages and disadvantages before applying.

Application Process

To apply for a Direct Consolidation Loan, log in using your Federal Student Aid (FSA) ID and complete the following steps:

1. Choose Loans & Servicer

  • Your federal loan information will automatically populate from the National Student Loan Data System (NSLDS).

  • Select which eligible loans to include.

  • If a loan is still in its grace period, you may choose to delay consolidation until the grace period ends.

  • Select a federal loan servicer to process the consolidation.

2. Select a Repayment Plan

Choose a repayment plan that aligns with your financial goals.

If you are interested in an income-driven repayment plan (such as IBR, PAYE, or ICR), you may complete the applicable request during the consolidation process.

3. Review Terms and Conditions

Carefully review the loan terms, conditions, and Privacy Act notice.

4. Provide Borrower & Reference Information

Enter required contact, employment, and reference details.

5. Review & Sign

Review your application for accuracy before electronically signing and submitting the Direct Consolidation Loan Application and Promissory Note.

After submission, your selected servicer will finalize processing and contact you with the next steps.

For additional guidance regarding consolidation, borrowers are encouraged to consult their loan servicer or the Federal Student Aid website.

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What Is Default?

A loan defaults when a borrower fails to make scheduled payments under the terms of the promissory note.

When Is a Loan Placed in Default?

For most federal student loans, default occurs after 270–360 days of missed payments, depending on the loan type. During this time, the borrower has not made the required payments and has not successfully responded to collection attempts.

What Is a Delinquency Period?

A loan becomes delinquent immediately after a missed payment.

During the delinquency period:

  • The lender or servicer attempts to contact the borrower.

  • The borrower has an opportunity to resolve the missed payments.

If the loan remains unpaid and the borrower remains unresponsive, it may enter default status.

Repayment Triggers

Repayment typically begins when a borrower:

  • Graduates

  • Withdraws from school

  • Drops below half-time enrollment

Failing to prepare for repayment after these events increases the risk of delinquency and default.

Consequences of Default

Student loans are rarely dischargeable in bankruptcy and may remain the borrower’s responsibility long-term.

If a loan defaults, the borrower may face:

  • Immediate demand for full repayment of the outstanding principal and interest

  • Loss of eligibility for additional federal student aid

  • Accrued late fees, collection costs, attorney’s fees, and additional interest

  • Reporting of default status to major credit bureaus (which may impact credit history for up to seven years)

  • Wage garnishment (withholding of earnings by an employer at the request of the federal government)

  • Withholding of federal payments, including Social Security benefits

Default can significantly affect financial stability and future borrowing opportunities.

How to Avoid Default

Borrowers who are having difficulty making payments should contact their loan servicer immediately. Options may include:

  • Changing repayment plans

  • Requesting deferment or forbearance

  • Exploring income-driven repayment options

Failing to communicate with your servicer may limit your options. The most effective way to avoid default is to make payments on time and communicate early if challenges arise.

If Your Loan Is Already in Default

There are pathways to regain good standing, including:

  • Loan Repayment (paying the balance in full)

  • Loan Rehabilitation (making a series of agreed-upon payments)

  • Loan Consolidation (combining eligible loans into a new Direct Consolidation Loan)

Borrowers are encouraged to contact their loan servicer promptly to discuss available resolution options and determine the most appropriate path forward.

 More Information

When you graduate, withdraw, or drop below half-time enrollment, your federal student loans typically enter a grace period. During this time, payments are not required.

Grace periods provide borrowers an opportunity to transition into repayment and prepare financially before monthly payments begin.

Prepayment

There are no prepayment penalties on federal student loans. Borrowers may:

  • Begin making payments during the grace period

  • Pay off loans early without penalty

Making early payments can reduce the total cost of borrowing.

Interest During the Grace Period

Interest treatment depends on the type of loan:

  • Subsidized Loans (Subsidized Stafford, Perkins, Direct Subsidized Loans):
    Interest does not accrue during in-school enrollment or the grace period.

  • Unsubsidized Stafford Loans and PLUS Loans:
    Interest accrues during school and throughout the grace period.

If unpaid, accrued interest may be capitalized (added to the principal), increasing the total amount repaid.

Making payments during the grace period—particularly on unsubsidized or PLUS loans—can help prevent capitalization and reduce overall loan costs.

For subsidized loans, early payments are applied directly to the principal balance.

Grace Period by Loan Type

Loan Type Grace Period
(Length of time before repayment begins)
Federal Stafford (Subsidized and Unsubsidized) Loans 6 months
Federal Parent
PLUS Loans		 No automatic grace period.*
Federal Graduate
PLUS Loans		 6 months
College Access Loans 6 months
Texas B-On-Time Loan 6 months

* Parent PLUS borrowers may choose, during the application process, to begin repayment immediately or request a deferment while the student is enrolled at least half-time.

Understanding your grace period timeline ensures you are prepared for repayment and positioned to manage your loans strategically.

Equity in Athletics Disclosure Act (EADA) Report

The Equity in Athletics Disclosure Act (EADA) requires coeducational postsecondary institutions that participate in Title IV federal student financial aid programs and sponsor intercollegiate athletics to submit an annual report to the U.S. Department of Education.

The EADA report provides transparency regarding:

  • Athletic participation rates

  • Coaching and staffing data

  • Revenues and expenses

  • Financial allocations by men’s and women’s teams

This disclosure supports accountability and ensures compliance with federal reporting requirements related to gender equity in collegiate athletics.
Current Report