Loans

Federal Loans

In order to be considered for Federal Student Loan Programs, students must file a new Free Application for Federal Student Aid (FAFSA) each year. Find FAFSA application information here. You must be a fully admitted, degree-seeking student enrolled at least half-time at South Dakota Mines in order to borrow Federal Student Loans. Loan borrowers may request loan cancellation by contacting the Financial Aid Office.

Detailed information about Federal Student Loan programs is available on the Federal Student Aid website.

Federal Direct Subsidized/Unsubsidized Student Loan – With the Federal Direct Loan Program, the student borrows loan funds directly from the federal government, on a subsidized or unsubsidized basis. Read more.

Federal Direct Parent PLUS Loan – This loan is available only to the parents of dependent students pursuing an undergraduate degree. Read more.

Federal Direct Grad PLUS Loan – This loan is available to graduate students who have exhausted certain other sources of funding. Read more.

Private Loans

In addition to federal student loan programs, at times it becomes necessary for a student to borrow a private alternative loan to help cover educational expenses. Students are advised to exhaust all possible Federal Student Aid options (including grants, loans, and work-study) before pursuing a private alternative loan. Please see Applying for Financial Aid for further information regarding the application process for Federal Student Aid.

Private alternative loans are borrowed from a lender, such as a bank, credit union, or financial institution. Interest rates, loan limits, eligibility criteria, and repayment terms of private alternative loans will vary among different lenders. These types of loans also typically require the borrower to obtain a credit-worthy co-signer. Private alternative loans do not offer the same benefits and provisions as federal student loans.

You are free to choose any lender you would like. South Dakota Mines’ lender list is available at FASTChoice, which provides assistance in comparing different lenders and loan programs. In selecting lenders for this list, South Dakota Mines considered factors such as: past loan volume, a proven record of customer service, range of availability, and lenders who are well-established within the industry. Again, you may select any lender you choose, even if they are not on this list.

South Dakota Mines FASTChoise Lender List

On February 14, 2010, the Private Student Loan Transparency and Improvement Act went into effect which requires that lenders obtain disclosure information and self-certification from borrowers prior to disbursement of loan funds. As a result, you should plan on 2 to 4 weeks of processing time for a private alternative loan.

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Federal Direct Grad PLUS Loan

The Federal Direct Grad PLUS Loan is available only to Graduate students who have been awarded their annual maximum for the Unsubsidized Direct Loan program or have exhausted their full $138,500 of eligibility as a graduate student. Like any loan, a Grad PLUS Loan must be repaid. Grad PLUS Loans with a first disbursement between July 1, 2022 and June 30, 2023 have a fixed interest rate of 7.54%. The Direct Grad PLUS Loan Program is available to students without adverse credit histories who are enrolled at least half-time. The current loan fee for loans disbursed between October 1, 2020 and September 30, 2023 is 4.228%. The annual loan limit is the estimated cost of education minus any financial aid received by the student (i.e., loans, fellowships, scholarships, work, etc.). All fees that are required to be withheld from the loan disbursement will be disclosed on the Notice of Guarantee and Disclosure Statement. After the loan is disbursed, it will be assigned to a Department of Education Federal Loan Servicer. Keep all communication that you receive as you will need to remember and know which servicer has your loan(s). Repayment of the Grad PLUS Loan begins within 60 days of the loan period's final disbursement on the loan (for example, after the spring semester disbursement for a fall/spring loan). Instructions for repayment are included with the application.

Applicants for the Grad PLUS loan must file a new FAFSA each school year. Grad PLUS Loan funds will be electronically received and applied to the student's account.

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Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan program is available only to the parents of dependent students pursuing an undergraduate degree. The Parent PLUS Loan, like any loan, must be repaid. Parent PLUS Loans with a first disbursement between July 1, 2022 and June 30, 2023 have a fixed interest rate of 7.54%. The current loan fee for loans disbursed between October 1, 2020 and September 30, 2023 is 4.228%. The Parent PLUS Loan program is available to parents without adverse credit who wish to borrow for a dependent student enrolled at least half-time. The annual loan limit is the estimated cost of education minus any financial aid received by the student (i.e., grants, loans, scholarships, work, etc.). However, parents should never borrow more that what is absolutely necessary to help the student offset their costs for attending South Dakota Mines. All fees that are required to be withheld from the loan disbursement will be disclosed on the Notice of Guarantee and Disclosure Statement. After your loan is disbursed, your loan will be assigned to a Department of Education Federal Loan Servicer. Keep all communication that you receive as you will need to remember and know which servicer has your loan(s). Repayment of the Parent PLUS Loan begins within 60 days of the loan period's final disbursement on the loan (for example, after the spring semester disbursement for a fall/spring loan). The parent borrower can elect to defer payments on the principal until six months after the date the student ceases to be enrolled at least half-time; however, interest continues to accrue, which can be paid monthly, quarterly or allowed to capitalize the interest quarterly (add accrued interest to the principal balance). Instructions for repayment are included with the application. The responsibility for repaying a Parent PLUS Loan will always remain in the parent borrower's name and can never be transferred to the student.

Federal Regulations require that the student for whom a Parent PLUS Loan is borrowed must have a valid FAFSA record on file in the South Dakota Mines Financial Aid Office. In the case of a student with divorced parents, whose parental information used on the FAFSA does not dictate which parent can borrow a Parent PLUS Loan. If a parent wants to apply for a Parent PLUS Loan, please complete an online PLUS Loan application at https://studentaid.gov (the parent borrower must log in with his/her own FSA ID). For 2022-23, the PLUS Loan application will be available beginning in May 2022. Parent PLUS Loan funds will be electronically received and applied to the student's account. Any funds in excess of what is needed to pay the student's bill are expected to be used to assist the student in paying for educationally related expenses. Parents should carefully consider how much they agree to borrow and not borrow more than what is needed for the academic year.

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Federal Direct Subsidized/Unsubsidized Student Loans

With the Federal Direct Subsidized/Unsubsidized Loan Program you borrow loan funds directly from the Federal Government. Like any loan, Subsidized/Unsubsidized Loans must be repaid. After your loan is disbursed, your loan will be assigned to a Department of Education Federal Loan Servicer. Keep all communication that you receive as you will need to remember and know which service has your loan(s). Subsidized and Unsubsidized Loans for undergraduate students with a first disbursement between July 1, 2022 and June 30, 2023 have a fixed interest rate of 4.99%. Unsubsidized Direct Loans for graduate students with a first disbursement between July 1, 2022 and June 30, 2023 have a fixed interest rate of 6.54%. The current loan fee for Subsidized/Unsubsidized Loans disbursed between October 1, 2020 and September 30, 2023 is 1.057%. (Check with your loan servicer for the interest rate in effect for your previous borrowing for Subsidized/Unsubsidized Loans.) While you are in school, the Federal Government pays interest on the Subsidized Direct Loan for you; however, you are responsible for the interest that accrues on the Unsubsidized Loans. Effective with loans first disbursed on or after July 1, 2012, Subsidized Loans are no longer available to graduate borrowers.

Students who began their academic career at South Dakota Mines, borrowed federal student loans (Direct, Perkins and/or Stafford) while attending and graduated from South Dakota Mines with a Bachelors Degree during the 2020-2021 academic year had an average indebtedness for these types of loans of approximately $27,028. Using the current maximum interest rate on a Direct Loan of 8.25% for undergraduate students (check your loan disclosures if you have borrowed previously), this would result in an approximate monthly payment of $332. Students are under no obligation to accept a student loan and should do so only after considering the long-term implications of borrowing.

Your award notification on Financial Aid Self-Service shows the eligible loan program and the maximum amount you are eligible to receive based on your grade level, Estimated Cost of Attendance, Expected Family Contribution and other financial aid you are receiving. You are under no obligation to accept a student loan.

Subsidized and Unsubsidized Loan payments are deferred as long as you are enrolled on at least a half-time basis. After you cease to be enrolled at least half-time, you will receive a one-time six-month grace period before entering repayment on the loan(s). Repayment will be according to the provisions of your Master Promissory Note (MPN). You are expected to contact your loan servicer when you graduate or cease to be enrolled on at least a half-time basis.

First-time Direct Loan borrowers must complete a Master Promissory Note (MPN) and Loan Entrance Counseling.

Federal Consolidation Loans

Applying for a Federal Consolidation Loan can help to lower monthly payments while giving the borrower more time to repay. Although a consolidation loan can help to ease the burden of monthly payments, the borrower will pay much more in interest over the life of the loan and may lose some of the provisions of their original loan promissory note. The advantages and disadvantages should be weighed carefully before agreeing to a loan consolidation. Private alternative student loans cannot be included in a Federal Consolidation Loan.