Students that wish to complete a Stafford Loan for the 2013-2014 academic year will need to complete three main steps:
A Stafford loan is a government guaranteed loan offering low interest rates and deferred payment options. There are two types of Stafford loans – subsidized and unsubsidized.
Eligibility for a Federal Stafford Loan
To be eligible, you must:
Subsidized Federal Stafford Loans
Students that meet certain financial need criteria may qualify for a Subsidized Federal Stafford Loan. The federal government pays the interest on the subsidized loan while students are enrolled at least half time, during the six-month grace period, and when they qualify for an authorized deferment.
Unsubsidized Federal Stafford Loans
Students who do not qualify for a Subsidized Stafford Loan may be eligible for an Unsubsidized Stafford Loan. The federal government does not pay the interest on an unsubsidized loan. Students have the option of paying the interest while they are in school or they can choose to have the interest added to their principal balance through a process called capitalization.
|Dependent Students||Base||Additional Unsubsidized||PLUS Loan Denial Subsidy*||Annual Maximum Amount|
* Dependent students with a parent that has been denied a PLUS loan may be eligible for the unsubsidized PLUS loan denial subsidy. Please contact us for additional details.
|Independent Students||Base||Additional Unsubsidized||Annual Maximum Amount|
The interest rate under the Direct Loan Stafford program for loans disbursed between July 1, 2013 and June 30, 2014 is fixed at 6.8% for subsidized loans and unsubsidized loans. Interest rates are subject to change July 1st of each year.
Your loan payments may be deferred until six months after graduation or six months after you cease to be enrolled at least half time. You typically have 10 years to pay off your Stafford loan. There are no prepayment penalties on a Stafford loan.
There will be a loan origination fee of 1% of the loan amount. Therefore, 1% is deducted from each loan disbursement.
Disbursement of the Loan
For academic year loans, the first disbursement will be paid at the beginning of fall semester and the second disbursement at the beginning of winter semester. For semester loans, the disbursement will be paid at the beginning of the semester.
Loan proceeds are provided directly from the federal government to Hanover College on behalf of the borrower. Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. The Office of Financial Aid will notify the borrower when the disbursement is received. If the loan proceeds create a credit balance the borrower will need to contact the Business Office to receive a refund, to receive a book voucher or to instruct them to return loan funds to the lender.
National Student Loan Database System (NSLDS) - View your Federal Stafford Loan borrowing history in the federal loan database.