STUDENT LOANS

FEDERAL STAFFORD LOANS are low interest loans made to students attending school at least half-time.  The funds come directly from the federal government.  You may qualify for a "subsidized" Federal Stafford Loan, which is based on financial need.  But, you can also get an "unsubsidized" Federal Stafford Loan regardless of financial need.  It is possible to have both types of loans.

The borrowing limit each year for graduate students is either the cost of attendance or 18,500 which ever is less.  (At least $10,000 of this amount must be unsubsidized Stafford Loans).  The interest rate is variable not to exceed 8.25%.  Borrowers with a prior outstanding loan at an established interest rate will continue to borrow at that rate.

You must pay all the interest that accrues on the "unsubsidized" loan during the time you are enrolled, during the grace period, and during periods of authorized deferments and repayment.  You may make monthly or quarterly payments to your lender; or you may agree to add the interest to the principal of the loan (capitalization).  The disadvantage of capitalizing interest is that you will pay more interest charges over the life of the loan because the interest charges are added to the principal balance and you are paying interest on the interest.  In addition, your monthly repayment amount will be higher.

APPLICATION PRECEDURES

Required Documents for Loans:

1. Free Application for Federal Student Aid (FAFSA) must be completed and mailed to the processor in the envelope provided with the form.

2. Loan request form from the OSFA.

3. Students who transfer mid-semester or who attended another institution during the summer will need to submit financial aid transcripts from the institutions attended (even if the student did not receive financial aid while enrolled there).

4. Signed copies of U.S. income tax returns for student (and spouse, if applicable) may be required.  Submit them to the OSFA upon request.

Procedures for Loans:

1. The OSFA will process you loan request form and mail the promissory note(s) to you for completion.

2. Complete the promissory note(s) and return to the OSFA.

3. If a first-time borrower on the Stafford Loan program attend one of the loan counseling sessions offered by the OSFA.

4. Loan proceeds are deposited into your account and any remaining funds will be mailed to you after all university charges have been paid.