Unsubsidized Stafford Loan
(for interest rate go to
Students who do not qualify for a subsidized
Stafford Loan will qualify for an unsubsidized
Stafford Loan. The unsubsidized Stafford Loan is not
a need-based loan. Borrowers are responsible for any
interest that accrues on the loan from the time the
loan is disbursed. Borrowers have the option to pay
the interest while in school or defer the interest until
repayment. If the interest is deferred, then it will
be capitalized or added to the principal amount of
the loan.
If your loan is approved for a full academic year,
your loan funds will be disbursed in two equal
disbursements electronically—one-half of the loan
will be disbursed in the fall semester and the second
half will be disbursed in the spring semester. At
Lycoming, we stagger disbursements for each
semester so it may take until late September (late
January for second semester) for your account to be
credited with your loan funds. We will not be able
to give you any credit balances on your account until
these funds have arrived.
Applying for a Federal Direct
Stafford Loan
Students borrowing from the Federal Direct Stafford
Loan for the first time must go to
to complete entrance counseling and sign an
electronic Master Promissory Note (MPN). You
will need to complete only one MPN while you are
enrolled at Lycoming College, even if you borrow
more than one Direct Stafford Loan throughout your
period of enrollment at the College. You will complete
the entrance counseling only once as well.
Completing the entrance counseling is a vital step
in the borrowing process. The counseling informs
the student of his or her rights and responsibilities
regarding the student loan. No student will receive a
Federal Direct Stafford Loan without completing the
entrance counseling.
The MPN is a legal document. By signing the
Stafford Loan MPN you promise to repay your current
and future Stafford Loans. The MPN is valid for 10
years and you are not required to complete another
MPN while enrolled at Lycoming.
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