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MECE Credit Union Student Loans
College Financial Aid Information
Lender Code 834352

What To Know About Financial Aid
Financial aid is the help you need to finance your college education. It is comprised of four areas:
1. Grants
2. Scholarships
3. Loans
4. Employment

You must be admitted to a college or university to have your financial aid application processed. The Free Application for Federal Student Aid (FAFSA) is the application for all of the above. The earliest possible date to submit the FAFSA is January 1st of the calendar year the school term begins, in either summer or fall. Grants, scholarships, and loans are awarded regardless of income level, so do not let worries about your family’s income keep you from applying.

The only way to receive many state scholarships, as well as student loans, is by completing the FAFSA. There are deadlines, and the free monies are first come-first served, so be sure to submit your FAFSA no later than March 1st.

Private scholarships and loans are also available. Please see below for detailed information on all grants, scholarships, loans, and the FAFSA.

FAFSA
The Free Application for Federal Student Aid, or FAFSA, is the main application for college financial aid. It can be completed online at www.fafsa.ed.gov or the paper version is available through any high school counselor or your college’s financial aid office. It is strongly advised to complete the FAFSA online because it processes quicker and there is less chance of error.

Do not complete the FAFSA through any Web site other than that listed above. Some companies will charge a fee to access the FAFSA through their site. Avoid unnecessary fees. This is a FREE service.

On the home page of the FAFSA Web site, you will be instructed to create a PIN first. Your PIN will be your electronic signature and your means to check the status of your FAFSA at any time.

The earliest you may complete a FAFSA is January 1st of the calendar year your school year begins. For example, a student’s school year begins in September of 2007. The earliest the FAFSA can be completed is January, 1, 2007. You will need your taxes done or estimated to complete the FAFSA. You must complete a FAFSA each school year.

The FAFSA applies for all the free monies you may qualify for, as well as the federal student loans. Some free monies are based on merit and not income, so be sure to get the FAFSA submitted as early as possible. The free monies are first come, first served and deadlines do exist. Best scenario is to have applied by March 1st.

For detailed questions about completing the FAFSA, contact your school’s financial aid office.

Stafford Loan
The Stafford Loan is the most common loan received by students. This loan is in the student’s name with no payment required until 6 months after a student graduates or falls below half-time attendance. Repayment term is ten years with a minimum $50 monthly payment.

There are two types of Stafford, subsidized and unsubsidized. Students showing an economic need will receive the subsidized Stafford. Any interest accrued while in school will be paid by the US Department of Education. Students not showing an economic need will receive the unsubsidized Stafford and are responsible for all interest accrued on the loan. Interest payments can be made at any time but are not required until repayment begins. If there is interest owed when the loan enters repayment, it will be capitalized and added to the principal balance.

Students will receive the same dollar amount regardless of whether the loan is subsidized or unsubsidized. It is possible to receive both. The government sets the interest rate, so it is the same no matter what lender you use. Interest rate reduction incentives are available during repayment. See the information on repayment for more details.

Government limits for Stafford Loans for dependent students:

The FAFSA is the application for a Stafford Loan. Once the FAFSA is completed, the student will need to sign the Master Promissory Note (MPN) in order to choose a lender and receive the funds. It is possible for the student to receive additional unsubsidized Stafford funds if the student is independent or the parent did not qualify for a PLUS loan.

Stafford Master Promissory Note (MPN)
Student loan funds cannot be disbursed without a signed MPN. As long as the student stays with the same lender, a MPN does not need to be signed again and the student can borrow for ten years. Some schools, however, may require a MPN be signed repeatedly.

You can electronically complete and e-sign your MPN from several Web sites. To use MECE Credit Union as your lender, simply type in “MECE Credit Union” as lender and 834352 as the lender code. If you are on a Web site that will not allow you to enter MECE Credit Union as your lender, then close out of that site and complete the MPN through this MECE Credit Union Web site. Please note: if you attend a Direct Lending school, your lender is automatically the US Department of Education.

Click here to complete the Stafford Master Promissory Note (MPN)

A parent may borrow a PLUS loan to help cover the cost of education for their dependent student. You may borrow up to the cost of attendance less any aid received by the student. In addition to the loan being in the parent’s name instead of the student’s, repayment begins immediately after full disbursement. Since most loans disburse half for the fall semester and half for the spring semester, most PLUS loans have first payment due in either February or March. The term is for ten years with a minimum $50 monthly payment.

Interest rates are set by the government and are the same for all lenders. There are repayment incentives available. See the repayment information for more details.

The application for a PLUS loan is the PLUS Master Promissory Note (MPN) and Application. Some schools will require the FAFSA to be completed as well. The loan is in one parent’s name and satisfactory credit is a criteria. If the parent does not qualify for a PLUS loan, the student can receive additional unsubsidized Stafford funds.

Parent PLUS Master Promissory Note (MPN) and Application
PLUS loan funds cannot be disbursed without a signed MPN. As long as the parent stays with the same lender and the loans are for the same student, a MPN does not need to be signed again and the parent can borrow for ten years. Some schools, however, may require a MPN be signed repeatedly.

You can electronically complete and e-sign your MPN from several Web sites. To use MECE Credit Union as your lender, simply type in “MECE Credit Union” as lender and 8343582 as the lender code. If you are on a Web site that will not allow you to enter Vantage as your lender, then close out of that site and complete the MPN through this MECE Credit Union Web site. Please note: if you attend a Direct Lending school, your lender is automatically the US Department of Education.

Click here to apply for a PLUS loan and complete the PLUS Master Promissory Note (MPN)

Graduate PLUS Loan
Graduate and Professional students may borrow using a PLUS loan. As with the Parent PLUS loan, the student may borrow up to the cost of attendance less all other aid awarded. A FAFSA must be completed and processed before a Graduate PLUS loan can be processed. A credit check is performed and the borrower must be credit worthy. Repayment term is ten years with a minimum $50 monthly payment.

As with the Parent PLUS loan, the Graduate PLUS loan enters repayment after full disbursement. If the student is still enrolled at least half-time, they can receive an in-school deferment to stay out of repayment until graduation. However, interest will continue to accrue on the loan.

Interest rates are set by the government and are the same for all lenders. There are repayment incentives available. See the repayment information for more details.

The application for a Graduate PLUS loan is the PLUS Master Promissory Note (MPN) and Application.

Graduate PLUS Master Promissory Note (MPN) Application
PLUS loan funds cannot be disbursed without a signed MPN. As long as the borrower stays with the same lender, a MPN does not need to be signed again and the graduate can borrow for ten years. Some schools, however, may require a MPN be signed repeatedly.

You can electronically complete and e-sign your MPN from several Web sites. To use MECE Credit Union as your lender, simply type in “MECE Credit Union” as lender and 834352 as the lender code. If you are on a Web site that will not allow you to enter MECE Credit Union as your lender, then close out of that site and complete the MPN through this MECE Credit Web site. Please note: if you attend a Direct Lending school, your lender will automatically be the US Department of Education.

Click here to apply for a Graduate PLUS loan and complete the PLUS Master Promissory Note (MPN)

Alternative Loans
If a student needs more loan funds after exhausting all possibilities with the FAFSA, an Alternative Loan is a good option. These are loans in the student’s name with no payment required until after graduation. The difference is these loans are made through private lenders instead of the government.

MECE Credit Union does not currently make Alternative Loans, but our partner MOHELA has a very good loan program. Visit their Web site at www.mohela.com and click on “cash loan” for all the information and application. Or, you may simply ask your school’s financial aid office which lenders they use for Alternative Loans.

Please note: Alternative Loans should always be the last resort. The goal is for the student to graduate with as little debt as possible.

Timeline
The most common error parents and students make when it comes to financial aid is not applying at all and/or applying too late. Here is a brief time line to help keep you on track:

July/August:	Apply for private scholarships; visit schools
Sept-Dec:	Apply for admissions; apply for scholarships
Jan-Feb:	Complete FAFSA and any other forms required
Mar-May:	Follow all instructions from school
Jun-Aug:	Get a summer job and save money
Sept:	Classes begin

Current Interest Rates
Interest rates for student loans are set by the US Department of Education and are the same for every lender. The only time there can be a difference in rates is after the borrower enters repayment. The companies that handle the repayment of student loans can offer special incentives to reduce the interest rate.

MECE Credit Union sells their student loans to MOHELA, and they have one of the best repayment incentives available. Details on those options can be found under “Rate Relief Program” and “Public Service Award Program” below.

Here are the current interest rates set by the USDE:

Stafford Loans	6.80% fixed with a cap of 8.25%
Parent PLUS Loan	8.50% fixed (Direct Lending rate is 7.9% fixed) with a cap of 9%
Graduate PLUS Loan	8.50% (Direct Lending rate is 7.9% fixed) with a cap of 9%

Repayment Information
Stafford loans do not enter repayment until six months after the student graduates or falls below half-time attendance. PLUS loans begin repayment 30-60 days after full disbursement. Most lenders sell their student loans when they enter repayment. MECE Credit Union sells their loans to MOHELA, the secondary market for student loans in Missouri. The companies that handle the repayment of student loans can offer special incentives to reduce the interest rate.

Repayment Benefit
All loans disbursed on or after June 1, 2008, will be eligible for a 0.25% interest rate reduction when your loan goes into repayment. To qualify for this rate reduction the following requirements must be met:

1. Sign up for automatic payment
2. Attend a Missouri School