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Undergraduate Federal Stafford Loans
Shawnee State University participates in the Federal Family Education Loan Program (FFELP). It includes the Federal Stafford Loans and Federal Parent Loan for Undergraduate Students (PLUS) Loan. The Stafford loan program has both subsidized and unsubsidized programs. The subsidized loan is need-based. The federal government pays the interest on the subsidized loan while the student is in school and during the six month grace period of the loan. The unsubsidized loan is interest bearing and the student is responsible for the interest from the time of disbursement. The PLUS loan is a loan that the parent can apply for to assist the student with their educational expenses. This loan requires credit approval by the lender. If the PLUS loan is denied, dependent students are eligible to borrow additional loan monies.
Federal Stafford loans are payment deferred until six months after graduating, dropping below six hours, or withdrawing from school. The normal repayment period is up to ten years but can be extended thru loan consolidation.
To apply for a loan at SSU, the student must:
First time borrowers at SSU must complete an entrance counseling session. This can be completed on-line at http://www.shawnee.edu/off/fa/counseling.html. Students must complete the entrance counseling before SSU will process a student loan.
First time borrowers at SSU and students who change lenders will also be required to complete a Master Promissory Note (MPN). The MPN is the loan contract between the student and the lender. It is the student's promise to repay the loan. The MPN is good for up to ten years. Students can electronically sign the MPN online or can complete the paper MPN. The lender will not disburse loan funds to SSU unless the student completes the MPN. Failure to complete the MPN will result in cancellation of the loan.
Parents who apply for a PLUS loan are also required to sign an MPN. The parent can also electronically sign the MPN or complete a paper MPN. Again, failure to complete the MPN will result in cancellation of the loan.
SSU has selected a lender list based on the borrower benefits offered to student and parent borrowers. Students and parents are not required to select a lender from this list. They may choose a lender of their choice.
Federal guidelines require that all students graduating, out of school for two consecutive semesters, or dropping below half time (6 credit hours) complete an exit counseling session. This can be completed on-line at http://www.shawnee.edu/off/fa/counseling.html.
Sallie Mae has a loan calculator to help students determine their payback options. The National Student Loan Data System (NSLDS) is available for the student to see their entire loan history including any loans received from other schools. A student can use the Personal Identification Number (PIN) that they use to apply for the FAFSA on the web to access the NSLDS web site.
The Financial Aid Office adheres to the statement of ethical principles for financial aid professionals. It can be viewed at http://www.nasfaa.org/EthicalPrinciples.html.
Interest Rates and Fees
Interest rates are fixed at 6.8% on Stafford loans and 8.5% on Parent PLUS. Stafford loans may have up to a 1.5% federal origination fee and a 1% default fee deducted from the loan proceeds. Parent PLUS loans may have up to a 3 percent federal origination fee and a 1 percent default fee deducted from loan proceeds.
Maximum Annual Loan Amounts for Federal Stafford Loans
Loan amounts are determined by the Federal Government.
Annual Loan Amounts (for loans disbursed after July 1, 2007)
Maximum Aggregate Loan Amounts for Federal Stafford Loans
Student/Parent Loan Borrower Rights
You have the right to-
*Notification of the change must be made either jointly or separately by the purchasing and selling lenders. If a borrower is in a grace period or in repayment, the last school the borrower attended may request the following from the guaranty agency before the beginning of the repayment period: notification of the sale, transfer or assignment of the loan to another holder, and the address and telephone number of the new holder.
Student/Parent Loan Borrower Responsibilities
You are responsible to -
For additional information or questions regarding student loans, please contact the Financial Aid Office at 740.351.4243.