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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.

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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.

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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

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Barnard Office of Financial Aid | 3009 Broadway, New York, NY 10027 | finaid@barnard.edu | 212-854-2154