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
FOR 2009-2010
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 the notification of your financial aid eligibility
(this is the only notification you will receive), we strongly
recommend that you visit MaineStreet self-service at https://mainestreet.maine.edu
on a regular basis. Please be advised that you may visit
the ACCEPT YOUR AWARD (tab) once and once only.
Follow the instructions carefully to apply for the Federal
Stafford Loan(s). Any changes after that will need to be
made directly with the Student Financial Aid Office.
Step 3: First-time
borrowers must complete an Entrance
Counseling Session to review their rights and
responsibilities. The Entrance counseling session must be
completed online and
must be completed prior to your federal loan being
certified.
Step 4: 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). In most cases you will be notified
when to complete this electronically. The MPN must be
completed before your loan funds will be released to the
school. Repeat borrowers using the same lender will
receive funds under their previously completed MPN.
Step
5: Your
loan will be divided between the number of semesters you
are enrolled at least half-time (6 credits) for the
academic year. Loan funds (less fees, if your lender
charges fees) will be sent to USM by Electronic Funds Transfer (EFT).
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 an
outstanding balance and credit refunds.
03/31/2009
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