- Part of my award includes a Federal Direct Stafford Loan. What are my next steps?
Under the Federal Stafford Loan and/or Federal Unsubsidized Stafford Loan Programs, freshmen may borrow up to $3,500, sophomores may borrow up to $4,500, and juniors and seniors may borrow up to $5,500 per academic year. Independent undergraduate students attending on at least a half-time basis, may borrow an additional $4,000 in their first and second year and $5,000 in their third year and beyond under the Federal Unsubsidized Stafford Loan Program.
As of July 1, 2008 H.R. 5715 went into effect. This law increased the Stafford loan limits for undergraduate students. The law provides all undergraduate students with an additional $2000 in Unsubsidized Stafford Loans.
Graduate students attending at least on a half-time basis may borrow up to $8,500 in the Stafford Subsidized and 12,000 in the Unsubsidized Loan Program for a total of $20,500.
To authorize the dollar amount you wish to borrow in the Federal Direct Stafford Loan program, complete the Federal Stafford Loan Certification which is found under the forms “tab” under SHUawards. Students, who receive both the Subsidized and Unsubsidized loan portion of the Stafford Loan Program and want to accept both, should fill in the total of the two loan amounts.
New student applicants and first-time borrows must complete an online Federal Direct Stafford Loan Master Promissory Note (E-MPN).
- How do I apply for my Federal Stafford Loan?
In order for your Federal Stafford Loan to be processed and applied to your Student Account, you must complete the following 3 Steps:
- Electronically sign your Federal Stafford Loan Master Promissory Note
- Complete the on-line Entrance Interview
- Complete the Stafford Loan Certification
- First-time borrowers must complete an Entrance Interview!
Before the University will process your loan, you must complete an Entrance Interview. Entrance Interviews will be held in person during orientation or can be done on-line at: http://www.mappingyourfuture.org/. Remember: When you apply for a loan, you are agreeing to repay the funds you borrow plus interest and fees. Unlike grants and scholarships, loans must be repaid.
- What are some of the other important details about the loan programs? There are processing fees!
All loans are subject to fees that are paid to the federal government to offset administrative and insurance costs. Fees are deducted proportionately from each disbursement. For Federal Stafford Loans and PLUS Loans, fees may reflect up to 4%.
There are special disbursement terms for these loans!
Your loan will be disbursed in two or more installments. Loan proceeds are sent directly to the University, either by electronic transmission or check. Loan proceeds for first-time borrowers may not be disbursed until 30 days after the first day of classes. You will be notified when the funds arrive.
- What is the difference between a subsidized Stafford Loan and an Unsubsidized Stafford Loan?
The term subsidized means that the federal government will be covering the interest payments on your loans while you are in school. The term unsubsidized means that the student, rather than the federal government, will be responsible for interest payments while you are in school.
- When do I start repaying my Federal Stafford Loan?
The principle plus interest for your Federal Stafford Loan will begin 6 months after graduation and you have 10 years to complete the payments.