Federal Stafford Loans

Stafford Loan Entrance Counseling
Stafford Loan Exit Counseling
Lenders 2008-2009
Lenders 2009-2010

The Federal Stafford Loans are loans from the Federal government. There are two types of Federal Stafford Loans: Subsidized and Unsubsidized.

Subsidized Stafford Loans are awarded on the basis of financial need, as determined by the results of the FAFSA. The federal government pays interest on the loan until you begin repayment and during authorized periods of deferment.

Unsubsidized Stafford Loans are awarded based on Cost of Attendance minus aid awarded, rather than any form of financial need. You are charged interest from the time the loan is disbursed until it is paid in full. You can either pay the interest while in school or you can have the lender add the accrued interest to the principal balance, which is called capitalization.

Processing Requirements:

• Accept the awarded Stafford Loan on-line through Tiger Tracks/Net Partner.
  • Apply directly on-line using our link or directly with the lender of your choice.

Note: Processing/certification of Stafford loans occurs after the Stafford Loan is accepted and application made directly with the lender. Loan certifications begin in June and continues throughout the award year.

Eligibility Requirements:

• Complete the FAFSA for the year in which you intend to receive aid.
• Be a degree-seeking student through FHSU.
• Be enrolled as at least a half-time student.
• To be eligible to receive the Subsidized Loan, the amount of the loan cannot exceed a student's unmet need.
  (Cost of Attendance - Expected Family Contribution - Other Aid = Unmet Need)
• To be eligible to receive the Unsubsidized Loan, the amount of the loan cannot exceed the student's original need.
  (Cost of Attendance - Aid = Original Need)
• Have no other loans currently in default.

If you already have a bachelor’s degree, you must fulfill one of the following requirements to receive a Stafford loan:

• Admitted to Graduate School in a specific Master’s degree program and enrolled in Graduate level couses. Notify our office when the process is complete.
• Enrolled in pre-requisite classes for a Master’s degree program. Provide signed documentation from advisor or Graduate Office.
• Seeking a second undergraduate degree. Submit an advisor-signed copy of your degree summary.
• Enrolled in classes for teacher certification. Notify our office when you have confirmed your standing in the Teacher Licensure Office, RH 220.

Dependent Students

Annual federal unsubsidized Stafford loan limit increased by $2,000. Dependent students can receive the base amount of eligibility plus up to $2,000 of additional unsubsidized Stafford funds.

Total aggregate increased to $31,000, of which $23,000 can be subsidized.

• Annual federal unsubsidized Stafford loan limit increased by $2,000 as of July 1, 2008, which means that freshman and sophomore students can receive up to $6,000 in additional unsubsidized Stafford funds and junior or above students, can receive up to $7,000 in additional unsubsidized Stafford funds.
  
• Total aggregate increased to $57,500, of which $23,000 can be subsidized.
  
  This chart illustrates the total amount annually available to independent undergraduate students:
  

Entrance Counseling:


All first-time borrowers at FHSU are required to complete entrance counseling either in our office or on-line. While the primary site is recommended, there is an alternate site available if you are unable to complete entrance counseling through the primary site.

If you have accepted a Stafford Loan, no financial aid funds can release until Entrance Counseling is completed at FHSU.

Exit Counseling:

When you graduate or leave school, you must complete loan Exit Counseling. If you are unable to complete your counseling session through the primary site, an alternative site is available.

Selecting a Lender:

All first-time borrowers at FHSU must select a lender and sign a Master Promissory Note with that lender. We encourage you to select from our list of lenders with which we have an established process. These lenders provide exceptional electronic service to our borrowers and work closely with FHSU to deliver your funds in a timely manner. If you choose a lender not on our list, please apply through their website and notify us of your selection.

• Terms and provisions of the Federal Program are the same for all lenders.
• It is recommended that you use the same lender (or servicer if you are a transfer student) throughout your college career.
• Federal regulations require that all lenders capitalize interest on Unsubsidized Stafford Loans at repayment.

Fees and Interest Rates:

Interest rates are set by federal regulation, effective as of July 1 of the academic year, and are therefore initially the same for all lenders. Origination fees, charged by lender, are limited to 1.5%. a 1% federal default fee, charged by a guarantee agency, may also be assessed.

• Amounts listed on award letters do not have this fee deducted.

• Stafford loans disbursed prior to July 1, 2006 have variable interest rates and are subject to change annually. Check with your lender for the most current interest rate information.

Master Promissory Note (MPN):

• FHSU processes loans using Master Promissory Notes (MPN). The MPN will allow you to borrow additional loans, based on the same Promissory Note, during the current year or subsequent years unless you change lender and/or school.
• Since the MPN does not specify a requested loan amount, refer to your most recent award letter. The amount you accepted is the amount you are borrowing for that academic year.
• The MPN is active for 10 years, unless revoked in writing to the lender, or if no disbursement is made within one year from the signature date.

Federal regulation allows the university to hold available funds for only three days. After this period, aid will be returned to the lenders for possible future disbursement when all eligibility requirements are met. This may cause considerable delay, and as a result you will be responsible for paying your tuition and fees.

Right to Cancel:
If you wish to cancel all or a portion of your Stafford or PLUS loan AFTER disbursement, you must notify the Student Fiscal Services Office in writing and attach a cashier's check made payable to your lender within 14 days of the receipt date. Questions regarding loan cancellation after disbursement should be directed to Student Fiscal Services (Sheridan Hall, Room 316), at (785) 628-4459.

Notify your lender and school if you:

• Graduate, withdraw from school, or drop below half-time status.
• Transfer to another school.
• Fail to enroll in school during the period for which the loan was intended.
• Change your name, address, or employer (after graduation only).
• Have any other status changes relevant to your loan.

Your rights as a student borrower:

• Repay the loan at any time without penalty.
• Receive a six-month grace period before beginning repayment.
• Be notified by your lender in writing if your loans are sold or transferred for servicing.
• Have your loan obligation forgiven if you die or become permanently disabled.
• Defer repayment for a specified period of time (if you qualify).
• Receive a copy of your disclosure statement and repayment schedule.