1. MSU requests and receive loan funds.
After Federal Direct Student Loans notifies the school of the approved loans for disbursement, MSU requests the appropriate loan funds from Direct Loans / U.S. Treasury. MSU receives the Direct Stafford Loan funds from the U. S. Treasury for eligible students and then prepares the funds for disbursement based on the prescribed schedule. The federally mandated disbursement schedule is based on a loan period and assigned disbursement dates. If there are two semesters within the loan period, the school must 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 school may disburse the entire loan in one disbursement. If there is only one semester within the loan period, then school will disburse the loan in one disbursement.
2. MSU processes the loan disbursement for delivery to the student.
The Student Loan Office and Account Services processes the loan funds on the prescribed date of disbursement for delivery to the student after the student meets all the eligibility requirements. These requirements includes the entrance counseling requirement for first-time borrowers at MSU and at least half-time enrollment for each semester within the loan period . Click here for Entrance Counseling. MSU will automatically apply the funds directly to the eligible student's MSU student account (Please note that federal regulations prohibit MSU from disbursing Direct Stafford Loan funds after 180 days from the end of the loan period).
3. Student receives the loan funds.
If the student has a credit balance (excess funds over tuition, fees and other charges) after the funds are applied to their MSU student account, Account Services will issue a refund via e-Refund, a direct deposit process offered by Account Services that allows you to manage your refund from the comfort of your computer. To use e-Refund, you are required to enter your bank information. To do so, you must log in to your myState, click on myBanner for Students, then Direct Deposit bank Information (under Account Information). Please review your Student Account Information at myState to see if your Direct Loan disbursement has been applied to your account. For more info on e_Refund refer to Account Services Refunds.