Stafford Student Loan Programs
Federal Family Education Loan Program - Stafford Student Loan
 Ann Jones Financial Aid Specialist and friend |
The Federal Stafford Loan assists students from both low- and middle-income families. Students who demonstrate need for a portion or all of the annual limit will receive a 'subsidized loan' for which the federal government will pay the interest due to the lender while the student is eligible for an in-school deferment and for the duration of any grace period. Stafford loan payments are deferred while the student maintains halftime or greater enrollment in school. Repayment begins 6 months after the last date of enrollment in 6 units, or graduation.
The interest rate is fixed at 6.80%. For more information, please refer to the Loan Deferment page.
Students who do not demonstrate need for part or
all of the annual borrowing limit may still receive an 'unsubsidized
loan' for which they must pay their own interest during the time
they are in school.
Stafford Loans allow dependent undergraduates to borrow up to $3,500 their
freshman year (<30 semester units) and $4,500 their sophomore year (>30 semester units) . Independent students can borrow
up to an additional $4,000 in unsubsidized loans.
| LOAN APPLICATION AND DISBURSEMENT DATES |
| Fall 2007 Application period and disbursement dates September 4, 2007 - November 16, 2007 |
| Disbursement dates will be on or after September 20, 2007 depending on date of application. Second checks for borrowers who applied in the Fall will be requested for February 8, 2008. |
| Spring 2007
Application Period and disbursement dates February 4, 2008- April 18, 2008 |
| Depending on initial date of spring application, disbursement dates will be on or after February 18, 2008 for first time Spring borrowers at LPC, with second disbursement checks scheduled for March 5, 2008 or after. |
A Stafford Student loan is a long-term financial obligation which can limit your cash flow and your purchasing ability for many years into the future. We hope you will seriously evaluate whether taking on loan debt is truly necessary to make ends meet. We strongly recommend you look at other ways to meet your current financial needs by careful budgeting, taking on a part-time job, etc. If you decide a loan is a necessity to meet your educational expenses, borrow only what you need.
BEFORE YOU APPLY FOR A LOAN:
You must first file a Free Application for Federal Student Aid (FAFSA) and complete your financial aid file. The fastest way to apply is to secure a federal pin number at www.pin.ed.gov, then apply online at www.fafsa.ed.gov. This takes about 10 days to process. While you may choose to submit a paper FAFSA, available in the financial aid office; please be aware that paper fafsas may take up to 4 weeks to process.
Once you have received your processed FAFSA results (Student Aid Report) you need to complete your file; to determine what you must do, check your financial aid account on CLASS-WEB (http://banner-web.clpccd.cc.ca.us:7000/), or contact the financial aid office directly.
- Once your file is complete, to apply for a loan you must submit:
A Student Loan Request Statement for the Automated FederalStudent Loan Master
Promissory Note (MPN) form; - The MPN Supplemental Information form; and
- Proof of Completion of the Entrance Counseling Exam form.
ENTRANCE COUNSELING EXAM:
To complete the entrance exam, logon to www.edfund.org, click on ‘ED TEST’ at the top right of the page; go to the ‘STUDENT ACCESS’ section and select ‘CALIFORNIA’ as the state and ‘LAS POSITAS COLLEGE-LIVERMORE’ as the appropriate school; then click on ‘ENTRANCE EXAM’. When you are finished, print out the ‘PROOF OF COMPLETION’, sign and date it, and submit it to the Financial Aid Office.
CHOOSING A LENDER:
'The following is our preferred lender list for federal Stafford loans.
Lenders with the strikethrough are (lenders that recently withdrew from the loan program)
EFSI - www.efsi.net
FINANSURI - www.finansurestudentloans.com
CITIBANK – www.studentloan.com
SOUTHWEST – www.sssc.com
CHELA – www.chelastudentloans.org
After carefully reviewing the features offered by a wide range of lenders, we have chosen these lenders because:
1) they do not sell their loans in a secondary market which is a very common practice in the loan industry. These lenders maintain the loan for the life of the loan. You will not have to make payments to a servicer or lending institution other than that which you originally borrowed from.
2) They offer a superior combination of savings, customer service, and loan processing reliability.
3) We have maintained a close working relationship with these lenders and we maintain critical personnel contacts, which enables us to expedite problem resolution on behalf of the student.
Borrowers have the right to choose lenders other than those on our preferred lender list. If you have borrowed a Stafford loan previously, you should always borrow subsequent loans from the same lender.
If you wish to borrow from a lender who is not on our preferred list, please contact the financial aid office. Any lender who participates with EdFund as a guarantee agency can be selected, but loan delivery time may be delayed slightly due to system set-up.
THE AUTOMATED STUDENT LOAN PROCESS:
Las Positas College uses EDFUND as our guarantor for all loans, and we participate in ED FUND’S Automated Loan Guarantee Program. This is the only method LPC will use to authorize a loan.
The Financial Aid Office will process your loan request information electronically; once your loan is guaranteed EDFUND (or your lender) will mail to you a partially completed Master Promissory Note (MPN). You must complete the MPN and submit it directly to the Lender. Your check should be ready for you to pick up at the college approximately 7 working days after the indicated disbursement date on your promissory note.
You may sign your promissory note online to save time at the appropriate
websites of our recommended lenders:
Lenders with the strikethrough are (lenders that recently withdrew from the loan program)
EFSI - www.efsi.net
FINANSURI - www.finansurestudentloans.com
CITIBANK – www.studentloan.com
SOUTHWEST – www.sssc.com
CHELA – www.chelastudentloans.org
LOAN ELIGIBILITY
Eligibility requirements are the same as those required for other sources of Title IV federal financial aid, including meeting satisfactory academic progress requirements. Additionally, a loan student must always maintain a 2.0 cumulative GPA and must always maintain enrollment in a minimum of 6 units each semester. Students who do not complete 6 units will be disqualified from receiving their loans.
LOAN EXIT COUNSELING:
Attendance at a Loan Exit Counseling Session is MANDATORY before a student can receive their second disbursement. Loan exit sessions are live and will be scheduled throughout the semester. You will be notified of the dates, and you may attend any session during the semester you will be receiving your second loan check. Repeat borrowers must attend a loan exit session each year.
REQUIREMENT FOR AT LEAST 6 UNITS OF COURSEWORK TO HAVE BEGUN PRIOR TO LOAN DISBURSEMENT:
Students in short term courses must have at least 6 units of courses whose start dates have passed before a check can be released. Enrollment in late-start courses may affect the timing of a student becoming eligible to receive their check depending on the number of units which began prior to the check receipt date. The financial aid office reserves the right to verify student’s actual attendance and progress in a course prior to check release.Checks will be held until at least 6 units of coursework has begun. Poor attendance or progress may be a basis for cancellation of a loan disbursement.
PRIOR TRANSCRIPT REQUIREMENT FOR STUDENTS WITH PRIOR LOANS:
Students who are borrowing at Las Positas College for the first time and have previously borrowed at other colleges are required to submit official transcripts from those other colleges before a loan is approved at Las Positas. Prior progress at previous colleges, in addition to any academic and financial aid history at Las Positas, will be a consideration for loan approval, as part of our default prevention plan. Students who have previously borrowed at Las Positas and have not attended any additional colleges since borrowing those loans are exempt from this requirement.
LOAN APPROVAL/DENIAL:
All loan applications are subject to review and approval by the financial aid officer. Loans will not be released prior to the 30th day after classes begin in accordance with federal regulations and LPC’s default prevention plan. For new students to the college and for students with a history of questionable academic or financial aid progress, the financial aid office will forward a verification of attendance and academic progress directly to instructors. Instructor responses to the verification will be considered in the loan approval process. Loans will not be approved for students not currently making good overall academic progress or showing poor attendance. Students will be notified in writing if a loan has been denied and will be informed of the reasons. As with all financial aid decisions, students may appeal a loan denial by writing a letter of appeal to the Student Services Appeals Committee and submitting it to the financial aid office. Appeals are usually reviewed within 15 days of receipt.
REPAYMENT begins six months after you either graduate OR drop below six (6) units. Payments average $50.00 per month or more, depending on the cumulative amount borrowed.
LOAN INTEREST RATE:
July 1, 2006, Stafford loan interest rates changed from a variable interest rate to a fixed rate of 6.8%. As a result of this change, students who have previous loans may end up with a combination of loans, some with a variable rate (disbursed prior to 7/1/06) and others with fixed rates (disbursed on/after 7/1/06).
Two kinds of loans may be granted: 1) A SUBSIDIZED loan, for students who show a financial need, and 2)an UNSUBSIDIZED loan, for students who do NOT show a financial need. Students with Subsidized Loans do not pay the interest on their loans while attending college. Students with Unsubsidized Loans are responsible for paying interest while attending college. Interest is either paid quarterly or can be deferred and rolled into the principle making overall cost of the loan substantially higher. A 2% ORIGINATION FEE will be deducted from your loan check as a service charge, and will be itemized on a disclosure statement you will receive with your check.
LOAN LIMITS:
The maximum amount you can apply for is $2625 in subsidized loans for first year (<30 semester units) students who qualify and $3500 for subsidized loans for second year students (>30 semester units) who qualify . In addition, INDEPENDENT students may borrow up to $4000 in unsubsidized an individual student is determined by the cost of attendance less financial aid awarded and any other financial resources.
FUNDS ARE ALWAYS DISBURSED IN 2 CHECKS:
Lenders are required by law to disburse your loan money in more than one check; a check in the amount of 1/2 of your requested loan will be issued each semester. In addition, you must remain enrolled in six or more units for the ENTIRE period of your loan or the remaining check(s) will be returned to the lender.
RECEIVING YOUR CHECK:
You will be notified by mail (or email if you have provided a current address) once your check is ready to be picked up. You must first obtain a check release form from the Financial aid Office; submit this form to the College Business Office, Building 100, in order to receive your check.
A LOAN IS A BIG RESPONSIBILITY!
You need to stay in contact with your lender and notify them of any changes in your academic status, school, address, graduation date, personal information, or educational goal. Most lenders have a toll free number to make it easier for you to contact them, but it is best to follow up in writing and keep copies.
For more information on the FFEL Stafford Loan Program
Ed Fund Website:
http://www.edfund.org/students/studentsmenu.html
Financial Aid Information Page: http://www.finaid.org/
