top image

Loans

  1. Financial Aid
  2. Loans

Loans are another form of financial assistance available to undergraduate and students as well as the parents of dependent undergraduate students. Each type of loan has its own unique fees, interest rates and repayment terms. Loans are often a necessary part of funding college costs. Montana Western will determine the maximum amount you are eligible to receive but it is important that you borrow wisely and only the amount you truly need.

ANY LOANS PROCESSED (FEDERAL OR PRIVATE) FOR ONE SEMESTER, WILL BE DISBURSED IN TWO (2) PAYMENTS DURING THE ONE SEMESTER.  (One disbursement at the beginning of the semester or as soon as it is processed and one disbursement at the mid-point of the semester.)

Students and parents should view the federal web site regularly for any changes as well as to view loan types and limits for each loan program.

If at any time you need assistance, you may also contact the Financial Aid Office at Montana Western at 406-683-7511.

The U.S. Department of Education is your lender and has the following loans available to students & parents:

Direct Subsidized Loans

  • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. The US Department of Education pays the interest on the Direct Subsidized Loan:
      • While you are in school at least half-time, (6 or more hours)
      • For the first six months after you leave school (referred to as a grace period, and
      • During a period of deferment (a postponement of loan payments)

UMW will award your eligibility at the time of processing your financial aid. If you want the funding, you must accept the funding on your DAWGS account and if a first-time borrower at Montana Western, complete the Entrance Counseling and Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action.

Direct Unsubsidized Loans

  • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
      • The US Department of Education does NOT pay the interest on the Direct Unsubsidized Loan
      • You are responsible for the interest during all periods of enrollment and non-enrollment
      • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and capitalized (that is, your interest will be added to the principal amount of your loan).

Montana Western will award your eligibility at the time of processing your financial aid. If you want the funding, you must accept the funding on your DAWGS account and if a first time borrower at Montana Western, complete the Entrance Counseling and Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action

The student may qualify for an Additional Unsubsidized Loan if the parent applies and is denied the Parent Plus Loan. The denial must be submitted to the Financial Aid Office at Montana Western before additional funding may be awarded to the student.

Direct Parent PLUS Loans

  • Direct Parent PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
      • The US Department of Education is your lender
      • You must NOT have an adverse credit history
      • The maximum loan amount is the cost of attendance (determined by your school) minus any other financial aid received

UMW will award your eligibility at the time of processing your financial aid. If you & your parent want the funding, you must accept the funding on your DAWGS account and if a first time borrower at UMW, your parent must complete the Entrance Counseling (required only once) and Master Promissory Note (must do each year) at https://studentloans.gov/myDirectLoan/index.action and also complete our internal PLUS loan application available at Montana Western PLUS Direct Loan Application for Parents.

Parents should review both the Federal Direct Parent PLUS Loans and Private Education Loans (also called Alternative Loans) and determine the best option for them based on their credit and repayment options. Information about private loans can be found below.

UMW uses a third-party servicer, Inceptia, to assist you with all your loan questions and more. You can visit the Inceptia website at https://www.heroknowl.org/ for information concerning each stage you may be in with your loans—In School; In Between; or In Repayment.

There are guides that help you determine what amount of loans you should consider borrowing based on your anticipated income as well as a Loan Repayment guide.

Inceptia offers information on additional financial aid resources; has courses you can take to assist you in knowing your rights and responsibilities as a student loan borrower as well as blogs and general information concerning Personal Finance. Check this information out at Financial Avenue https://fa.financialavenue.org/.

Federal Perkins Loan Program

  • Federal Perkins Loan Program  is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is the lender. [This program ended September 30, 2017. No new loans can be made from this fund].

UMW uses a third party servicer, Heartland/ECSI, to assist us in repayment, deferments & forbearance approvals. You should mail these completed forms to: Heartland/ECSI; 3330 Healy Drive, Suite 105; Winston-Salem NC 27103. You can view your Perkins loan information at https://efpls.com/ as well as acquire additional documents. You can also call them at 1-800-334-8609. If at any time you need assistance, you may also contact the Financial Aid Office at Montana Western at 406-683-7511.

TEACH Grant

https://studentaid.gov/understand-aid/types/grants/teach

TEACH Grant Exit Counseling provides information about fulfilling your TEACH Grant service obligation and explains the terms and conditions that apply if your TEACH Grant is converted to a Direct Unsubsidized Loan.

If you fail to comply with the guidelines and polices of your TEACH Grant, it may convert to a Direct Unsubsidized Loan with accrued interest.

National Student Loan Data System

We encourage students to periodically log into https://nslds.ed.gov/nslds/nslds_SA/ to view their financial aid history. This federal site should show you all aid received at any college & will show you the status of your student loans.

You can Compare all of the federal student loan programs here.

Exit Counseling

Exit Counseling provides important information to prepare you to repay your student loan(s). If you have received a Subsidized, Unsubsidized, Perkins, Teach Grant or PLUS loan, you must complete exit counseling each time you:

  • Drop below half-time enrollment (6 credit hours)
  • Graduate
  • Leave School

You can go to https://studentloans.gov/myDirectLoan/index.action  to complete the required exit counseling for any of your Direct Loans (Perkins exit counseling will be mailed to you by UMW).

Private Education Loans

Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows students to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.

Many students/parents take out private education loans in order to finance their education. With that, it’s best to get as much information as possible before you begin the process.

If at any time you need assistance, you may also contact the Financial Aid Office at Montana Western at 406-683-7511.