Stafford Loan Information
The Federal
Family Education Loan (FFEL) Program administers the Stafford
Loan Program which is a major form of self-help aid for students.
Under the FFEL Program, the funds for
your loan are lent to you from a private lender (a bank,
credit union, or other lender that participates in the FFEL
Program). Your loan would be repaid to the same private
lender that made you the loan or to its designated agency.
FFEL
Stafford Loans have variable interest rates. The loans are
either subsidized or unsubsidized. You may receive a subsidized loan and an unsubsidized loan for
the same enrollment period.
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A subsidized
loan is awarded on the basis of financial
need. You won't be charged any interest before you
begin repayment or during deferment periods. The federal government "subsidizes"
the interest during these periods.
-
An unsubsidized
loan is not awarded on the basis of need. You'll be
charged interest from the time the loan is disbursed until
it is paid in full. If you allow the interest to accrue (accumulate)
while you are in school or during other periods of
nonpayment, it will be capitalized. This means the
interest will be added to the principal amount of your loan,
and additional interest will be based upon the higher
amount.
Federal
Subsidized Stafford
Federal
Unsubsidized Stafford
-
This
loan is based not on financial need.
-
ED
does not pay the interest while the student is in school
and during grace and deferment periods.
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All
new Stafford Loans have a fixed
interest
rate of 6.80%..
-
Unsubsidized
loans are charged interest from the day the loan is
disbursed until it is paid in full, including
in-school, grace, and deferment periods. The
borrower may choose to pay the interest during these
periods, or it can be capitalized (added to the
principle).
-
Students must be
enrolled at least half-time each term in order to be
eligible for this loan.
The
Stafford Loan application process:
The loans amounts for which
you are eligible are listed on your financial aid award
notification. If
you choose to borrow, you must confirm the award amounts you
wish to borrow and return one signed copy of the notification to
the Office of Student Financial Aid.
If you choose to borrow less than the amount listed, you will
need to modify the letter to show the lesser amount you wish to
borrow.
-
If you have
previously completed a Master Promissory Note (MPN) at Washington State
University, you
are not required to complete a new loan application unless you
decide to change your lender. (The MPN is the legal contract between the
borrower and the lender, ensuring that you (the borrower) will
repay the loan.)
-
If you have not previously completed an
MPN at Washington State University, you'll
start the loan application process by getting a letter from
EdFund, which includes instructions for completing the loan
application online at www.edfund.org.
A link to WSU's Preferred
Federal Loan Lenders
will be available online as well.
Parent PLUS
Denial/Additional Stafford Eligibility
If your parent's application for a
Parent PLUS is
denied, you may qualify for an additional Unsubsidized Stafford
Loan. (The amount of the unsubsidized Stafford Loan may not
equal the amount of the original Parent PLUS.) To access the
unsubsidized Stafford Loan, you must provide the Office of Student Financial
Aid with a copy of the Parent PLUS denial letter issued directly from the
lending institution.
For more information on
Stafford Loans:
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