Your Financial Aid Award Letter may list Federal Subsidized and/or Unsubsidized Stafford Loan eligibility. If so, you are not required to borrow through this program, or you may borrow less than the amounts listed on your Financial Aid Award Letter.

If you decide not to borrow, do not return a Loan Request Form to the Student Service Center.

The Stafford Loan Program is a federal loan program which can be both need-based and non-need based:

A Subsidized Loan is considered “need-based’ and the federal government is paying your interest for you while you are enrolled at least half-time and during a six-month grace period after you leave school. You do not have to show need to qualify for an Unsubsidized Loan, however interest is accruing while you are in school. You have the option of allowing the interest to accumulate or you may pay the interest as it accrues. The type and amount of your loan(s) for which you qualify is determined by your FAFSA results and other factors, such as student need, independent or dependent student status, grade level, and annual /aggregate borrowing limits.

Repayment of the principal and interest begins six months after you cease to attend at least half-time. Half-time enrollment is six undergraduate or six graduate credits per semester.

The Interest rate is 6.8%.

Disbursements: Loan proceeds are usually sent to the school in equal disbursements at the beginning of each semester. It will also depend on whether your financial aid file is complete or if you still need to submit any verification documents that may have been requested from you. In general, you can expect a disbursement for each semester you are enrolled at least half-time.

Loan Fees: The lender sends equal disbursements per semester and a processing fee of up to 2.0% may be deducted from each disbursement. For example, if a loan was approved for $3,500, the student could actually receive $3,430.00. Loan fees (if any) are set annually and can vary by lender/guarantor. As a result, it is impossible to accurately predict potential fees at this time.