Federal Stafford Loans
This loan provides funding for students to pay for their educational expenses. The loan is made to the student, and the student is directly responsible for repayment of this debt. Eligibility is contingent upon completion and submission of appropriate application documents. Repayment of principal begins six months after a student ceases enrollment on at least a half-time basis.
There are two types of Stafford Loans. If the student demonstrates financial need, students can qualify for the Subsidized Stafford Loan. The federal government pays the interest on this loan while enrollment remains at least half-time. If a student does not qualify for the full Subsidized Stafford Loan, he/she may borrow an Unsubsidized Stafford Loan. Interest on this loan must be paid while enrolled or student may capitalize the interest and pay it, along with the principal, upon leaving school.
Stafford Loan funds are borrowed directly from the Federal Government and repayment is made directly to a servicing agent that is assigned by the Department of Education.
The amount of your student loan depends on the number of credits you have successfully completed. If you are a new student or have completed fewer than 28 credits, you are eligible for an annual maximum of up to $3,500. If you have completed or transferred in with 28 -- 59 credits, you are eligible for an annual maximum of up to $4,500. Once you have completed or transferred in with at least 60 credits, you are eligible for an annual maximum of up to $5,500.
Stafford Loan eligibility is determined by the Financial Aid Office in accordance with federal regulations. To apply for and receive such a loan, the student must complete an Entrance Counseling and an Electronic Master Promissory Note (or, E-MPN) at
http://www.studentloans.gov. If you are an incoming student with an incomplete file, the student will need to complete these processes online before the Stafford Load can be processed. If you are a returning student, an applicable Master Promissory Note may already be on file. Please check with the Financial Aid Office if you have questions or if your loan proceeds are not delivered to your account within four weeks of a semester start.
In either case, you must have an eligible Master Promissory Note in order to process a Student Loan of any sort. After your promissory note has been completed, your loan will be electronically certified by the college and the Student Accounts Office will receive the loan and credit it to your account, half in each semester (minus the origination fee). The FAFSA is the annual application for a Federal Stafford Loan.