Federal Stafford Loans
Federal Stafford Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. Students will not
be charged any interest before repayment begins or during authorized periods of deferment. The federal government "subsidizes" the interest
during these periods. An unsubsidized loan is not awarded on the basis of need. Students are charged interest from the time the loan is
disbursed until paid in full. The lenders for this program are banks, credit unions, or other lenders that participate in the federal loan
program. Student loan applications can be obtained from the College Financial Aid Office or from any lender. Students pay fees up to four
percent of the loan, and these fees are deducted proportionately from each loan disbursement.
A first time undergraduate dependent student can borrow up to $3,500 for the first year of study, $4,500 if they have completed
30 credit hours, and $5,500 a year if they have completed 60 credit hours.
Undergraduate independent students or dependent students whose parents are denied a Federal PLUS (parent) loan can borrow up to $7,500
for the first year of study (only $3,500 of this amount may be in subsidized loans), $8,500 if they have completed 24 credit hours (only
$4,500 of this amount may be in subsidized loans), and $10,500 a year if they have completed 60 credit hours (only $5,500 of this amount
may be in subsidized loans).
First time borrowers, once you return your signed Financial Aid Award Letter to the Financial Aid Office, American Student Assistance
(ASA) will send you a Federal Stafford Loan Master Promissory Note (MPN) to sign and return. First time borrowers are also required to complete an
Entrance Interview in order to receive a Federal Stafford Loan. To complete this requirement, go to
www.mapping-your-future.org. Click on "Online Student Loan Counseling" then click on "Stafford Loan Entrance Counseling".