Loan Information
Stephens College processes all Federal loans through the William D. Ford Federal Direct Loan Program (effective 2010-2011 academic year). The first step in applying for student loans is to complete the Free Application for Federal Student Aid (FAFSA) online. If you prefer, you may request a paper copy of the FAFSA from your high school counselor, the Financial Aid Office, or by calling (800) 4FEDAID. The Financial Aid Office will determine your eligibility for student loans after receiving your FAFSA and will notify you of the type and amount of loans you are eligible to receive. After you receive your financial aid award, if you plan to request Federal Direct student loans, please follow the links provided.
Choosing the right loan
- Subsidized: Federal Stafford low interest loan available to undergraduate students; eligibility is based on financial need. Interest is paid by the federal government while the student remains enrolled at least half time. Repayment begins six months following the last date of enrollment at half time or full time status.
- Unsubsidized: Federal Stafford loan for undergraduate or graduate students; eligibility is not based on financial need. Interest is paid by the student while in school, or can be added to the principal balance of the loan through a process called capitalization. Repayment begins six months following the last date of enrollment at half time or full time status.
- Graduate PLUS: Federal credit-based loan for graduate students. It is not need-based and has fixed interest rate. Student may request deferment while enrolled with at least half time status.
- Parent PLUS: Federal credit based loan for parents of dependent students. It is not a need-based loan. Parent may request deferment while student is enrolled with at least half time status.
- Private, credit-based loans: Non-federal loans, not restricted on financial need. Benefits, qualification, and rates vary by lender. Alternative Loan Historical Lender list: https://choice.fastproducts.org/FastChoice/Welcome.do?configId=1344269146657
|
Stafford Subsidized Loan |
Stafford Unsubsidized Loan |
Graduate PLUS Loan |
Parent PLUS Loan |
Private Lender |
Lender |
United States Department of Education |
United States Department of Education |
United States Department of Education |
United States Department of Education |
Varies |
FAFSA Required |
Yes |
Yes |
Yes |
Yes |
No |
Interest Rate 2012-2013 |
3.4% Fixed |
6.8% Fixed |
7.9% Fixed |
7.9% Fixed |
Varies- lenders offer fixed and variable rates |
Interest Rate 2013-2014 |
6.8% Fixed |
6.8% Fixed |
7.9% Fixed |
7.9% Fixed |
Varies- lenders offer fixed and variable rates |
Interest Accrued |
Paid by Federal Government while enrolled at least half-time |
Student is responsible for paying while enrolled or interest capitalizes and accrues |
Student is responsible for paying while enrolled or interest capitalizes and accrues |
Parent is responsible for paying while student is enrolled or interest capitalizes and accrues |
Varies by lender. Interest can be paid while enrolled or it can capitalize and accrue |
| Loan Fees | 1% Origination Fee |
1% Origination Fee |
4% Origination Fee |
4% Origination Fee |
Varies by lender, 0% for most lenders |
Eligibility Requirements |
Financial Need; Must be enrolled at least half-time |
Not based on Financial Need; must be enrolled at least half-time |
Credit Check Required; Must be enrolled at least half-time |
Credit Check Required; Must be enrolled at least half-time |
Credit Check Required; Enrollment requirements vary |
Annual Loan Limits |
$3500-$5500 depending on academic classification |
$2000-$7000 |
Cost of Attendance minus any financial aid awarded |
Cost of Attendance minus any financial aid awarded |
Cost of Attendance minus any financial aid awarded |
Aggregate (Lifetime) Limits |
Varies by grade level or dependency status |
Varies by grade level or dependency status |
None |
None |
Varies |
Responsible Party |
Student |
Student |
Student |
Parent |
Student and/or cosigner |
| Cosigner Requirement | N/A |
N/A |
No. Endorser is optional if denied due to adverse credit |
No. Endorser is optional if denied due to adverse credit |
Varies depending on lender |
| Cosigner Release | N/A |
N/A |
N/A |
No. Parent is making a commitment to replay the loan for the life of the loan |
Many lenders provide a cosigner release |
Repayment Begins |
6 months after last day of enrollment in at least half-time status |
6 months after last day of enrollment in at least half- time status |
60 days of loan being fully disbursed, unless deferment is requested |
60 days of loan being fully disbursed, unless deferment is requested |
Varies depending on the lender |
| Repayment Length | 10-25 years |
10-25 years |
10-25 years |
10-25 years |
4-24 years, varies by lender |
| Deferment | Automatically deferred as long as enrolled at least half-time |
Automatically deferred as long as enrolled at least half-time |
Can request to defer until student is no longer attending |
Can request to defer until student is no longer attending |
Varies depending on lender |
Steps to Apply for your Stafford Loan
To accept a Stafford Loan, all students must sign and return a copy of their award letter to the Financial Aid Office. First time borrowers and transfer borrowers are also required to participate in a Loan Entrance Counseling Session and to complete a Master Promissory Note (MPN) prior to loan processing. Once you’re ready to begin, follow these steps:
- Log on to www.studentloans.gov with your Social Security Number and Department of Education issued PIN. If you don’t have a PIN, please visit the official PIN site to request one.
- Once you sign in, select Complete Entrance Counseling and proceed through the session. You will receive an electronic confirmation once the session is complete.
- Next, click on Complete New MPN for Student Loans to complete your Stafford Loan Master Promissory Note.
If you do not wish to complete Entrance Counseling online, you may contact the Financial Aid Office at [email protected] to schedule a counseling appointment with a Financial Aid Counselor.
Please complete these steps prior to June 1st to ensure that Stafford loan funds are available for your use on the first day of classes (or by December 1st for the Spring semester). Applications are accepted throughout the year.
Steps to Apply for your Parent PLUS Loan
Please complete the following steps prior to June 1st to ensure that PLUS loan funds are available for your student’s use on the first day of classes (or by December 1st for the Spring semester). Applications are accepted throughout the year.
- Log on to www.studentloans.gov with your Social Security Number and Department of Education issued Parent PIN. If you don’t have a PIN, please visit the official PIN site to request one. .
- First time and returning borrowers must complete the Parent PLUS Loan Application and credit check. Requests for an increase to an existing loan can be made throughout the year, depending on loan eligibility, by submitting an additional Parent PLUS Loan Application.
- First time PLUS Loan borrowers must complete a Parent PLUS Master Promissory Note (MPN). Click on ‘Complete Master Promissory Note’ and select ‘Complete New MPN for Parent PLUS Loans.’ You can request and complete a paper Master Promissory note by contacting the Financial Aid Office at [email protected] Please be aware paper filing typically delays processing by 2-4 weeks.
Stafford Loan FAQs
Are there limits to how much I can borrow?
Limits are set on how much financial assistance students can receive in the form of federal student loans, frequently determined by the student’s financial need and grade level.
Maximum Annual Award
|
Dependent student |
Independent student |
1st-year undergraduate |
$5,500 |
$9,500 |
2nd-year undergraduate |
$6,500 |
$10,500 |
3rd- and 4th-year undergraduate |
$7,500 |
$12,500 |
Graduate/professional |
Not applicable |
$20,500 |
The aggregate (lifetime) limit for dependent students is $31,000 (up to $23,000 may be subsidized).
The aggregate limit for independent students and dependent students whose parents cannot borrow PLUS is $57,500 ($23,000 may be subsidized).
The aggregate limit for Graduate/professional students is $138,500 (up to $65,000 may be subsidized)*
*Beginning July 1, 2012 graduate/professional students are not eligible for new subsidized loans. .
How will I know when funds will be disbursed?
You will receive notification from Stephens College via email that funds have been disbursed to your student account. Disbursements occur no earlier than ten (10) days prior to the start of a term. To ensure loan funds are available for your use on the first day of classes, be sure to complete all loan paperwork prior to June 1st (December 1st for Spring semester).
What if I would like to cancel my Stafford Loan or Parent PLUS Loan?
You may cancel all or a portion of your loan before the start date of the loan period. Please submit a written request to the Financial Aid Office, or email us at [email protected] from your Stephens student email account if you would like to cancel all or a portion of your loan. Changes made to loan amounts will be reflected on your student statement within 30 days of your request.
How does Loan Consolidation work?
When a student graduates, withdraws, or reduces enrollment below half time status, loan repayment will begin. Students will be provided with several options concerning repayment, including loan consolidation, and will have the opportunity to choose which option, is in their best interest. Students may contact the Direct Loan Program for an application for a Direct Consolidation Loan.
How do I find out who services my federal student loans?
Information regarding your federal loan debt can be accessed via the National Student Loan Data System (NSLDS) at http://wwww.nslds.ed.gov. Note that any private alternative loans will not appear on NSLDS.
