Federal Stafford Loan

If you are a continuing student and have already had a Federal Stafford Loan while at Whittier, you do not need to complete a new MPN. Whittier College will use the same lender, unless you decide to choose a different lender.

 

WHO IS ELIGIBLE?

The Federal Stafford loan is a low interest loan awarded to all students who are either U.S. Citizens or permanent residents. You must be enrolled at least half-time to be eligible for the Federal Stafford Loan.

 

AMOUNT OF ELIGIBILITY:

The amount you are eligible to receive is based on your grade level. Review lender information to determine if the loan amount you borrow will be reduced due to lender fees.

Dependent students can borrow the following for the academic year:

  • Freshman (0-29 units) - $3,500 + $2,000 in Stafford Unsubsidized loans
  • Sophomores (30-59 units) - $4,500 + $2,000 in Stafford Unsubsidized loans
  • Juniors and seniors (60 units or more) - $5,500 + $2,000 in Stafford Unsubsidized loans

 

INTEREST RATE:

The interest rate on the Federal Subsidized Stafford loan for 2008-2009 is a fixed 6% interest and for the 2009-2010 school year it will be a fixed 5.6% interest (if disbursed after July 1, 2009). This interest rate is applicable while you are in school, during the grace period, during repayment and if you are in deferment or forbearance. The interest is paid by the federal government while you are in school and during your grace period. The grace period is 6 months after you graduate or cease to be enrolled less than half-time.

If you are awarded the Federal Unsubsidized Stafford Loan, the interest rate is 6.8%. You are responsible for paying the interest while you are in school. You may elect to defer the interest payments; however, Whittier College encourages students to make monthly payments to avoid capitalization. Capitalization is the adding of accrued interest to the principal balance at repayment.

 

DISBURSEMENT:

Your Federal Stafford Loan funds will be sent in via EFT (Electronic Funds Transfer) and will be applied directly to your Whittier College student account. The first disbursement will arrive in the fall semester with the second disbursement in the spring. Entrance Counseling and a completed Master Promissory note (MPN) are required before funds are allowed to disburse. Provided that the all financial aid requirements are complete, your Federal Stafford Loan funds will be applied your Whittier College student account 10 days prior to the first day of class

 

REPAYMENT:

Repayment on the Federal Stafford Loan will begin 6 months after you have graduated or cease to be enrolled at least half-time. There is no prepayment penalty. Standard repayment may take 10 years. There are many loan forgiveness programs which may forgive all of part of the Federal Stafford loan.

 

HOW TO APPLY FOR THE FEDERAL STAFFORD LOAN

NOTE: Keep in mind that with the current financial crisis we are experiencing, banks may determine to cease any and all loan applications currently being funded. IF your lender decides to follow through with this decision, be advised that a new Master Promissory Note (MPN) will need to be completed. Contact your lender's customer service department for current updates.

Students must complete the Free Application for Federal Student Aid (FAFSA) for the appropriate year to be considered for this loan

Accept your Federal Stafford loan on your Whittier College financial aid award letter or accept the award at my.whittier.edu. My Info.

Complete Entrance Counseling on line via EDTEST. This information explains your rights and responsibilities as a Federal Loan borrower and is a federal requirement. Your Federal Stafford loan will not disburse to your Whittier College student account until you successfully complete this requirement.

Select a lender and complete the Master Promissory Note (MPN). Whittier College has provided a list of lenders that we feel offer you optimal service and pricing for your Federal Stafford loan. To apply simply go online to ELM SELECT. Please compare each lender's repayment benefits and conditions. You will only need to complete the Master Promissory Note once, unless you decide to choose a different lender.

IMPORTANT: You have a choice and are not obligated to select one of our lenders. We recommend these lenders based on the quality of products and services they provide to students and families. We have carefully considered our selections in order to provide you with the best possible list of suggested lenders. However, if you wish to use another lender that is not on this list, you have the right to do so. If you decide not to use a Whittier College lender, please apply online at your lending institution of choice. Make a copy of the completed MPN and send it to the Office of Financial Aid. Be advised however, that lenders outside of the Whittier College process may cause a delay in the processing and disbursement of your loan.

Once we have received notification from your selected lender that the loan has been approved and the MPN is complete, we will certify your Federal Stafford loan.