Federal Stafford Loan
The Stafford loan is a federal loan program where the student is the borrower. These loans have a low rate of interest not to exceed 8.25%. The subsidized Stafford loan for undergraduate students has a fixed interest rate of 6.00% for loans first disbursed on or after July 1, 2008. The unsubsidized Stafford loans and the subsidized Stafford loans for graduate students have a fixed interest rate of 6.80% for loans first disbursed on or after July 1, 2008. The Office of Financial Aid determines the students’ eligibility each year for the Stafford Loan based on the results of the Free Application for Federal Student Aid (FAFSA). The FAFSA results show if the student is eligible for the subsidized Stafford, unsubsidized Stafford or a combination of the two. The federal government pays the interest on the subsidized Stafford while the student is enrolled at least half time; however, they do not pay the interest on the unsubsidized Stafford loans. Students can request to not pay the interest in which case the interest will accrue and be capitalized on to the principal of the loan. The amount of the Stafford loan is determined by the students’ grade level (more information is provided on the Loan Information Sheet). Students must meet the Satisfactory Academic Progress requirements and be enrolled at least half-time to receive the federal Stafford loan. Half-time enrollment is normally 6 credit hours per semester. However students enrolled in 8-week courses offered by programs like the MBA, MIS, BPS and others, must be enrolled in both 8-week sessions during the semester, for a total minimum of 6 credit hours across the entire 16 weeks of the semester.
NEW BORROWER STEPS TO PROCESSING A STAFFORD LOAN:
STEP 1: New Stafford loan borrowers at UMW must complete, sign and return the Loan Information Sheet to the UMW Office of Financial Aid.
Click here to access the Loan Information Sheet
STEP 2: New Stafford loan borrowers at UMW must complete Loan Entrance Counseling and sign a Master Promissory Note (MPN).
Students selecting a lender from the electronic lender list will be prompted to complete Loan Entrance Counseling and sign an MPN.
Click here to access the Electronic Lender List
Borrowers selecting a lender other than one on the electronic lender list Click here to complete Loan Entrance Counseling and complete an MPN with your selected lender. Most lenders have an electronic process on their website. In addition, students must submit a copy of their MPN to the Office of Financial Aid.
STUDENTS WHO PREVIOUSLY BORROWED A STAFFORD LOAN AT UMW:
The Office of Financial Aid will process the Stafford loan for a student each year with the same lender unless notified otherwise by the student. Loan Entrance Counseling, the Loan Information Sheet and the MPN need to be completed only once if the student remains enrolled at least half time each semester, in the same degree program (undergraduate degree or Master’s degree).