Student Loans

There are three types of loans available to students:

• Subsidized: A Subsidized Federal Stafford loan is a low interest, variable rate, need based loan to help pay for educational expenses. The federal government pays interest to the lender during the student's enrollment in school, 6 month grace period immediately following school and during any authorized periods called deferments when payments may be postponed.
  
  
• Unsubsidized: An Unsubsidized Federal Stafford loan is available to students who may not qualify for subsidized loan or who qualify for less than the full amount. Unsubsidized means the federal government does not pay interest to the lender on a student's behalf. Students are responsible for paying all interest throughout the life of the loan.
  
  
• Parent Plus: Parent Plus loans are federally sponsored educational loans for parents of undergraduate, dependent students. A PLUS loan allows parents to borrow the full cost of a child's education including tuition and fees, room and board, books and supplies, transportation and living allowance less other financial aid received.

Students should begin the process of applying for a student loan as soon as possible after January 1 of the year for which they will need financial aid. Aid is generally awarded on a first-come, first-served basis, and a late application may cause students to miss out on available funding.

To get started:

1. Starting point is to complete the Free Application for Federal Student Aid (FAFSA). Applications available:
   • Online at Federal Student Aid (FAFSA)
   • Paper FAFSA from high school guidance office, college financial aid office, or public library.
   • Request a FAFSA be sent to you by contacting the Federal Student Aid Information Center (FSAIC) at 1.800.4FEDAID.
2. Approximately four weeks after you submit the FAFSA, you will receive a Student Aid Report (SAR), which tells your Expected Family Contribution (EFC) or how much your family is expected to pay towards the cost of your education. The SAR is mailed to the school(s) to which you have been accepted.
   
   
3. Financial aid administration at your school(s) will use the SAR information to determine your eligibility for financial aid and send you a financial aid award letter detailing your eligibility for grants, loans, and/or work study.
   
   
4. If the school you choose has included federal student loans as part of your financial aid award, you will need to complete a Stafford loan Master Promissory Note (MPN). The MPN is the legal agreement you sign with a lender when you accept student loan funds. By signing the MPN, you agree to pay the loan under the terms and conditions detailed in the note. Your school will provide instructions.
   
   
5. The school must certify your enrollment, your cost of education, any other financial aid you'll be receiving and, in the case of some loans, your financial need.
   
   
6. You or your school will submit the Stafford loan note to a lender.
   
   
7. Once your loan is approved, the lender will send the loan proceeds to your school (minus fees paid to the federal government and guarantor). Your school will deduct tuition, and other authorized expenses and provide you with the remaining funds, if any. If it's your first loan and your first year in school, the money may not be released until 30 days after your first day of enrollment.