Steps to Complete for Loan Disbursement
New students or first-time borrowers
You must complete all three steps in order for your loan to disburse:
- Log on to MU Online to accept your loans.
- Sign in at https://studentaid.gov and complete the Direct Loan Master Promissory note.
- Complete the Loan Entrance Counseling at https://studentaid.gov.
If you had a Federal Direct Loan last year, simply accept your loan(s) on MU Online. Your Master Promissory Note (MPN) and Entrance Counseling are on file.
Types of Loans
Loans are the elements of a financial aid package that must be repaid. Some loans are offered by the Federal government, others come from private sources. All Federal Loans require the completion of the Free Application for Federal Student Aid. Each loan program is described below.
Federal Direct Subsidized Loan
Eligibility for the Federal Direct Subsidized Loan is based on financial need. Interest on the loan is paid by the Federal Government as long as the student is enrolled at least half-time (6 credit hours) during the term. The subsidized loan offers a 6 month grace period, before repayment on the loan is expected. The interest rate is determined each year by Federal guidelines. For 2020-21 the Federal Subsidized Direct Loan interest rate is 2.75%. There is an origination fee assessed by the Department of Education before disbursement. The loan fee as of October 1, 2019 is 1.059%. New borrowers need to complete the Loan Entrance Counseling and the Master Promissory Note at www.studentaid.gov.
Federal Direct Unsubsidized Loan
Eligibility for the Federal Direct Unsubsidized Loan is not based on financial need. The interest accrues on this loan while the student is still enrolled. The student may pay this interest while in school, or they can allow it to accrue and capitalize. Repayment begins six months after the student graduates or ceases to be enrolled at least half-time (6 credit hours) during the term. The interest rate is determined each year by Federal guidelines. For 2020-21 the Federal Unsubsidized Direct Loan interest rate is 2.75%. There is a loan fee assessed by the Department of Education before loan disbursement. As of October 1, 2019 the fee is 1.059%. New borrowers need to complete the Loan Entrance Counseling and the Master Promissory Note at www.studentaid.gov.
Parent Loans for Undergraduate Students (PLUS)
This federal loan program allows parents to borrow on behalf of their dependent student who is attending at least half-time (6 credit hours). The annual limit for this loan is determined by subtracting the total financial aid received from the student's total cost of attendance. The loan requires successful completion of a credit check. For 2020-21 the interest rate is 5.30%. The Dept of Ed will assess an origination fee of 4.236% before disbursement. Parents can apply online at https://studentaid.gov. Repayment begins 60 days after the loan is fully disbursed. The PLUS loan can be deferred until the student graduates or ceases to be enrolled. Deferment options can be requested through the loan servicer. If a parent is not approved for the PLUS Loan, we will offer up to $4000 additional for Freshmen and Sophomores and up to $5000 additional to Juniors and Seniors, in the Unsubsidized Direct Loan. The parent will receive an immediate response on his/her PLUS Loan and Millikin will be notified electronically.
The private/alternative loans are commercial educational loans that may be used to close the gap between your financial aid and cost of attendance. Interest rates will vary from lender to lender. Listed below is our our historical lender list. You are not limited to these lenders. There are many alternative loan options in the lending community. Personal research is up to each individual or family, as Millikin cannot advise on these products.
Possible lenders (listed alphabetical order)
- Anheuser-Busch Credit Union
- Ascent Independent Variable Loan
- Citizens One Student Loan
- College Avenue Student Loans
- Discover Student Loans
- Dupaco Credit Union
- Elements Federal Credit Union
- Evansville Teachers Federal Credit Union
- Interra Credit Union
- Iowa Student Loan Corporation
- PNC Bank
- Regions Bank - Smart Option Loan
- Sallie Mae
- SoFi Student Loan Finance Corp
- Student Loan Finance - iHelp Loan
- Sun Trust Bank
- Thrivent Federal Credit Union
- University of Illinois Employees Credit Union
- University of Wisconsin Credit Union
- Wells Fargo
- Updated January 2020
Graduate Student Loans
Federal Direct Unsubsidized Direct Loan for Graduate Students: Graduate students must file the FAFSA each year to be considered for the Unsubsidized Direct Loan. The student must maintain at least half time (6 credits) enrollment. The interest rate in 2020-21 is 4.30%, with an up front fee of 1.059%. First time borrowers, be sure to complete the loan entrance counseling and the master promissory note at https://studentaid.gov.
Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS loan, is credit based and requires completion of the online application. The interest rate is 5.30% in 2020-21 and repayment begins 60 days after full disbursement, however, the student can request a deferment. Origination fee assessed on all loans is 4.236%. You will need to complete the FAFSA to be eligible. To apply go to https://studentaid.gov. First time borrowers - complete your MPN - Master Promissory note at https://studentaid.gov.
Maximum annual loan limits
Maximum annual limits for undergraduate and graduate students are monitored by the college based on federal regulations.
Maximum for Subsidized Loans
|Total Subsidized and/or Unsubsidized|
|Third Year and higher||$5,500||$7,500|
|Third Year and higher||$5,500||$12,500|
|Graduate and Professional Students||$20,500|
Federal Direct Subsidized/Unsubsidized Loan(s)
In accordance with Federal regulations, when a student ceases enrollment at least half-time or graduates, the institution is required to provide Direct Loan Exit Counseling.
You can complete your exit counseling at https://studentaid.gov. You will sign in with your FSA ID. You will see the amounts of your loans listed and go through helpful information on loan repayment, including who you owe, when you owe and a monthly expense estimate to help you with budgeting. Learn how to avoid default and what to do if you are having trouble making payments.
Loan consolidation, loan forgiveness, and repayment options of Federal Student Loans are all done through studentloans.gov or by talking with the servicer of your loan. If students do not know their loan servicer, they can view all loan details at www.nslds.ed.gov. You will sign in with your FSA ID. Loan consolidation is free, you should never pay a company to consolidate your Federal Loans.