FEDERAL
DIRECT STAFFORD LOAN PROCEDURES - 2009-2010 Barnard College is participating
in the Federal Direct Stafford Loan Program beginning in the 2009-2010 academic
year. The Program is administered by Barnard College which works with the U.S.
Department of Education to offer this loan. The student borrows directly from
the federal government and has a single contact--the Direct
Loan Servicing Center--for everything related to the repayment of your loans.
Detailed information regarding the Program can be found on the U.S.
Department of Education's web site. Federal Direct Stafford Loans are available
to students who are enrolled at least half-time and are U.S. citizens or permanent
residents.
The Direct Loan Program offers the following types of student
loans: - Subsidized: for students with demonstrated financial
need, as determined by federal regulations. No interest is charged while a student
is in school at least half-time, during the grace period, and during deferment
periods.
- Unsubsidized: not based on financial need; interest is
charged once the loan is disbursed.during all periods, even during the time a
student is in school and during grace and deferment periods.
| Federal Direct Stafford
Loan Limits | Undergraduate | Dependent
Student | | | Maximum
Stafford | Additional
Unsubsidized | 1st-year | $3,500
| $2,000 |
2nd-year | $4,500
| $2,000 |
3rd year | $5,500
| $2,000 | 4th
year | $5,500
| $2,000 |
| If a parent is denied a PLUS
Loan, a dependent student is then eligible for an additional Federal Direct Unsubsidized
Loan, up to $4,000 for first-year and sophomores and $5,000 for juniors and seniors. |
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| Federal Direct Stafford
Loan Application Procedures | | 1. | Complete
the Federal Direct
Stafford Student Loan Request form. | | 2. | Complete
the Master Promissory Note on-line.
Click on "Complete New MPN for Student Loans." This is a legal document
in which you promise to repay your loan(s) and any accrued interest and fees to
the Department of Education. You will be required to use your Department of Education
PIN--the same PIN you use to complete the FAFSA. | | 3. | Complete
an Entrance Interview on-line. Click on
"Entrance Counseling." This helps you to understand your responsibilities
regarding your loan and is required before the first disbursement of your loan.
If you have borrowed a Stafford loan before, you do not need to do another Entrance
Interview. Check your financial aid portal to determine if your Entrance Interview
was received. | | 4. | Submit
FAFSA to the federal processor if you have
not already done so. | | 5. | Complete
the Verification Worksheet and submit
to the Financial Aid Office. | | 6. | Submit
2008 federal tax returns and all 2008 W-2 forms for you and your parents to the
Financial Aid Office if you have not already done so. |
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| Federal Direct Stafford
Loan Interest Rates and Fees | Subsidized | Unsubsidized |
For first disbursement on/after
July 1, 2009: Interest Rate: 5.6% | For
first disbursement on/after July 1, 2006: Interest
Rate: 6.8% | For
loans first disbursed on/after July 1, 2009 through June 30, 2010: Origination
Fee: 1.5% Rebate: 1.0% Net
Fee of .5% is deducted from the amount borrowed. | | Interest
rate reduction: 0.25% when you use the electronic debit account (EDA) option to
make payments on your loan. | | Click
here for calculator. | (Back to top)
Disbursement
of Loans: Your loan is for a full academic year and a disbursement will be
made at the beginning of each term.
Repayment
of Loans: When you graduate, drop below half-time, or withdraw from Barnard
College, you will receive a six-month grace period for your loans. Once your grace
period ends, you must begin repaying your loan.
You may choose to pay interest
on your Direct Unsubsidized loan while you are in school. If you choose not to
pay the interest while you're in school, it will be added to the unpaid principal
amount of your loan, called capitalization. Click here to review the Direct
Loan Repayment plans. (Back to top)
Additional
Information and Resources:
Web Sites for Borrowers:
Direct Loans
- Students: http://www.direct.ed.gov/student.html
Direct
Loan Servicing Center - Borrower Services: http://www.dl.ed.gov
Direct
Loan Master Promissory Note: http://www.dlenote.ed.gov
FAFSA:
http://www.pin.ed.gov (to register for a Department
of Education Parent PIN)
Federal Student Aid Information: http://www.studentaid.ed.gov
Direct
Loan Consolidation Center: http://www.loanconsolidation.ed.gov Call
Centers:
COD School Relations - Applicant Services: 800-557-7394
Direct
Loan Servicing Center - Borrower Services: 800-848-0979 (Back
to top)
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