1. How do I know if I am eligible for a Stafford loan?
To be eligible, you must:
- Not be in default of any previous student loans
- A U.S. citizen or an eligible non-citizen
- Be enrolled at least half-time in an accredited degree program
- Have a high school diploma or GED
2. What is the difference between the loans?
Subsidized - The federal government pays the interest on the loan while the student is in school, enrolled at least half time.
Unsubsidized - The interest begins to accrue at the time of disbursement, you can choose to pay the interest on the unsubsidized loan as it accrues or allow it to capitalize.
GradPLUS - A graduate/professional student can borrow on his own behalf up to the cost of attendance.
3. How much am I allowed to borrow?
Qualifying students can receive up to $8500 in subsidized and $12,000 in unsubsidized loans, for a total of $20,500 every two semesters, i.e. fall/spring, spring/summer, or summer/fall. GradPLUS borrowers can borrower up to the cost of attendance less any financial aid or scholarship.
4. What is the interest rate?
The interest rate for Stafford loans after July 1, 2007 is fixed at 6.8%
The interest rate for GradPLUS loans after July 1, 2007 is fixed at 8.5%
5. What is the Master Promissory Note (MPN)?
A promissory note is the legal agreement a student signs with a lender accepting student loan funds. The MPN states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The MPN is a simplified method of applying for and receiving Federal Stafford Loan funds.
6. When will I start repaying the loan?
Subsidized & Unsubsidized Stafford loans have a 'grace period' and are deferred until six months after you graduate, withdrawal or drop below less than halftime. The GradPLUS loan does not have a grace period but students may defer payment on their loans while in in-school status. There are no prepayment penalties for either types of loan.
7. When do I receive my loan stipend money?
Stafford loans are disbursed the 1st day of classes, once the money is applied to the students account, all additional monies will be mailed to the student within one week in a student stipend check.
