Federal Stafford Student Loan
NEW REQUIREMENT FOR All STUDENT LOAN BORROWERS
Effective immediately, Saint Joseph's College will administer federal student loans through the Federal Direct Loan Program (DL). With legislation recently enacted by Congress, the Federal Family Education Loan Programs are being eliminated and all funding of federal student loans will be done directly by the Federal Government in the Direct Loan Program. This means that you will be REQUIRED to complete a new Master Promissory Note (MPN) with the U.S. Department of Education as your lender even if you have previously borrowed from the Stafford Loan Program. Your MPN must be signed before your loan disbursements can be finalized.
Before applying, make sure you know your Federal Student Aid PIN that you used to file your Free Application for federal Student Aid (FAFSA). Just like on the FAFSA, the PIN serves as your electronic signature on your MPN.
Steps for Borrowers to take for 2010-2011 Loans:
Borrowers new to Saint Joseph's College
- Go to: https://studentloans.gov
- Click the green SIGN IN button. Sign in using the information requested.
- Complete BOTH the following:
- Entrance Counseling
- Sign Master Promissory Note
- Complete the Stafford Loan Request Form
Current Saint Joseph's College students who have already borrowed Stafford Loans
- Go to: https://studentloans.gov
- Click the green SIGN IN button. Sign in using the information requested.
- Click Sign Master Promissory Note to complete new MPN
- Complete the Stafford Loan Request Form
See additional information about Federal Direct Stafford Loans
Federal Direct Subsidized and Unsubsidized Stafford Loans
The terms of the need based Federal Direct Subsidized Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as subsidized because no interest is charged while the student is enrolled in school and during the six month grace period.
The terms of the non-need based Federal Direct Unsubsidized Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as unsubsidized because the interest is not paid by the federal government while the student is enrolled in school. Interest on Direct Unsubsidized Loans begins to accrue after disbursement of the loan funds, however, the student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time of repayment.
Additional terms of the Federal Direct Subsidized and Unsubsidized Stafford Loans, subject to federal regulation, include:
- Interest Rates and Fees
| Subsidized Interest Rate: |
4.5% |
| Unsubsidized Interest Rate: |
6.8% |
| Origination Fees: |
0.5%* (net) |
*The Federal Direct Subsidized and Unsubsidized Stafford Loans have a 1.0% origination fee and also offer a .5% rebate on the origination fee – resulting in a net fee of .5%, which will be deducted from the gross amount of the loan borrowed. Once you enter repayment and make your first 12 monthly payments on-time, the rebate becomes permanent. If you fail to make your first 12 on-time monthly payments, a charge for the initial rebate will be added to the outstanding balance of the loan.
- Repayment begins six months after the student ceases to be enrolled in school on at least a half-time basis and generally extends over a 10 year period.
- Annual borrowing limits for Dependent Students
| Year |
Subsidized |
Unsubsidized** |
TOTAL |
| 1 |
$3,500 |
$2,000 |
$5,500 |
| 2 |
$4,500 |
$2,000 |
$6,500 |
| 3,4 |
$5,500 |
$2,000 |
$7,500 |
- Annual borrowing limits for Independent Students***
| Year |
Subsidized |
Unsubsidized** |
TOTAL |
| 1 |
$3,500 |
$6,000 |
$9,500 |
| 2 |
$4,500 |
$6,000 |
$10,500 |
| 3,4 |
$5,500 |
$7,000 |
$12,500 |
***If a Federal Direct PLUS Loan is applied for by a parent and denied based on credit, a dependent undergraduate may borrow at the independent levels listed above.
