Federal PLUS Loan Disbursement Process
Lender disburses loan funds to school
After the guarantor approves the loan and the lender/loan agency completes the loan application process, the lender/loan agency will disburse the funds to MSU for eligible students and parents. If there are two semesters within the loan period, the lender/loan agency will disburse one-half of the loan for the first semester and the other half for the second semester, unless the first semester is past, then the lender/loan agency may disburse the entire loan in one disbursement. If there is only one semester within the loan period, then the lender/loan agency will disburse the loan in one disbursement.
School processes loan disbursement
When the disbursement arrives on campus, it is processed and prepared for delivery to the student or parent after the student meets all the eligibility requirements, which includes enrollment in at least six eligible credit hours for each semester within the loan period. Most lenders send disbursements to MSU as an Electronic Funds Transfer (EFT) through the National Disbursement Network (NDN), but a few lenders may send a paper check, which takes more time to process than an EFT. If the disbursement is an EFT, MSU will automatically apply the funds directly to the student's MSU student account. If the disbursement is a check, which is make co-payable to MSU and the parent, the Office of Controller and Treasurer will mail the check and an authorization form to the parent for processing. The parent borrower should endorse the check, complete the authorization form, and return both to Account Services. When Account Services receives the endorsed check and authorization form, they will credit the student's (MSU student) account (Please note that federal regulations prohibit MSU from disbursing Federal PLUS Loan funds after 120 days from the end of the loan period).
Parent/student receive loan funds
If the student has a credit balance (excess funds over tuition, fees and other charges) after the funds are applied to the student's MSU student account, Account Services will, if requested on the Authorization form, send any excess funds (over tuition, fees and other charges) to the parent borrower. Otherwise, Account Services will make the excess funds available to the student when requested. Beginning on the first day of final registration each semester and continuing each weekday throughout the semester, MSU will process available Federal PLUS disbursements for eligible students and parents. Please review your Student Account information on the MSU Intranet at https://mybanner.msstate.edu to see if your EFT PLUS disbursement has been applied to your account.
