Student Financial Aid
Stafford
Loans
FEDERAL
STAFFORD LOANS
Stafford
Loans are for undergraduate, graduate and professional degree
students. There are
two types of Stafford Loans:
Subsidized
and Unsubsidized.
-
Subsidized Stafford Loans are available to students who demonstrate
financial need as determined by using information provided on
the FAFSA. Interest
on Subsidized Stafford Loans is paid by the federal government
while you are enrolled at least half-time or qualify for a
deferment.
-
Unsubsidized Stafford Loans
do
not require the student to demonstrate financial need,
however, the student is required to file a FAFSA.
Interest on Unsubsidized
Stafford Loan is either paid by the student or added to the
loan principal (capitalized).
Repayment
of principal and interest for both types of loans begins six
months after the student graduates, leaves school or stops
attending at least half time. We
also recommend visiting the Loan
Payment Calculator web site to help you determine your
future payments based on your Stafford Loan balance.
FEDERAL
STAFFORD LOAN APPLICATION PROCESS
Step 1: Complete
the FAFSA and submit any other information (tax returns and other documents)
that may be requested by the Financial Aid Office.
Step 2: When
you receive notification of your financial aid eligibility,
complete and return the “Stafford Loan Application/Information
Update” to the Financial Aid Office.
The Financial Aid Office will certify your loan
eligibility and transmit this information to the lender.
Step 3: For
all Federal Stafford Loan borrowers, if you are borrowing from
your lender for the first time, you must complete a Master
Promissory Note (MPN). Once
your Federal Stafford Loan request has been processed, you will
be sent an email with instructions to electronically sign your
MPN.
Step 4: First
time borrowers are required to complete an Entrance Interview on-line.
The entrance interview explains your rights and
responsibilities as a Stafford Loan borrower.
Step 5: Your loan will be divided
evenly between the number of semesters you are enrolled at least
half-time (6 credits) for the academic year.
Loan funds (less an origination fee, if your lender
charges one) will be sent to USM by electronic funds transfer
and, assuming you continue to meet all eligibility criteria,
will be credited to your bill.
If the lender uses paper checks instead of EFT, the
Student Billing Office will contact the borrower after the check
is received. Visit
the Student Billing web site or call 780-5200
for details about outstanding balances and credit refunds
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