1. MSU requests and receives loan funds.
After Federal Direct Student Loans notifies MSU of the approved loans for disbursement, MSU requests the appropriate loan funds from Direct Student Loans / U.S. Treasury. MSU receives the Direct PLUS Loan funds from the U. S. Treasury for eligible students and parents and then prepares the funds for disbursement based on the prescribed schedule. The federally mandated disbursement schedule is based on a loan period and the 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.
The Student Loan Office and Account Services processes the loan funds on the prescribed date of disbursement for delivery to the student or parent after the student meets all the eligibility requirements, which includes at least half-time enrollment for each semester within the loan period. 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 PLUS Loan funds after 180 days from the end of the loan period).
3. 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 issue the refund based on the authorization by the parent borrower. If the parent borrower authorizes the refund to go to them self, then, Account Services will send any excess funds (over tuition, fees and other charges) to the parent borrower. If the parent borrower authorizes the refund to go to the student, then, Account Services will make the excess funds available to the student when requested. Beginning on the first day of final registration for each semester and continuing each weekday throughout the semester, MSU will process available Federal Direct PLUS Loan disbursements for eligible students and parents.Please review your Student Account information at myState to see if your Direct Loan disbursement has been applied to your account.