1. Select a lender from the drop down box provided. 
2. Verify that all information pre-printed in the borrower's section is correct.  This information was provided when you logged into American Education Services' Account Access and created your own User ID and password.  Please note the address provided should be your permanent home address.
3. Provide two separate references, living at different U.S. addresses, and indicate their relationship to you.  The first reference should be a parent or legal guardian.
4. Indicate if you want to pay unsubsidized interest while you are in school.  If you select "No" the interest will be added to the principle, increasing future repayment amounts.
5. Select one of the following options to sign the Stafford MPN:
   
   -Sign the completed Stafford MPN electronically with your U.S. Department of Education PIN.  This is the same PIN that can be used to electronically sign your FAFSA.  If you completed a paper FAFSA the pin would have been mailed to you afterwards.  (If you do not have a PIN, go to www.pin.ed.gov, or contact customer service at 1-800-801-0576.) Electronically signing the Stafford MPN is the fastest and most efficient way to apply for a Stafford Loan.
   
   -Print the Stafford MPN form at your printer and mail it to AES at:
   P.O. Box 8177 Harrisburg, PA  17105
   
   -Request AES print the MPN form, sent it to you to complete, and then you return it to AES.

Lycoming College will certify your Stafford Loan once all required information has been received. 

The Stafford Loan will be guaranteed by American Education Services (AES).  The funds may be delivered through Electronic Funds Transfer (EFT) directly to your school account.

If you are a first-time user of the online process, you will have to create an account before actually applying for the Stafford Loan.  Once your account is created, you will be returned to the application process.

First-time borrowers are required to complete entrance loan counseling before funds can be applied to your account.  If you have not yet completed entrance counseling, you will first be direct to do so prior to completing the MPN.  Failure to complete entrance counseling will prevent you from completing the MPN.

Subsidized Stafford Loan:  A subsidized loan is awarded on the basis of need.  You will not be charged any interest before you begin repayment or during an authorized period of deferment.  The federal government "subsidizes" or pays the interest during these periods.

Unsubsidized Stafford Loan:  An unsubsidized loan is not awarded on the basis of need.  You will be charged interest from the time the loan is disbursed until it is paid in full.  If you allow the interest to accumulate, it will be capitalized; that is, the interest will be added to the principal amount of your loan, and the additional interest will be based upon the higher amount. 

The maximum yearly amounts for the Federal Stafford Loan are:

• Any combination of subsidized and unsubsidized loan cannot exceed these limits. For example, if a freshman is eligible for $1,000 in a subsidized loan, he/she would be eligible for $1,625 in an unsubsidized loan. The student applies for both loans using the Master Promissory Note (MPN). When the College certifies the loan, we will tell the lender the exact amounts to disburse for each loan.
   
• Freshmen and sophomore students are eligible to borrow an additional $4,000 unsubsidized Stafford Loan if their parent(s) are denied a Parent PLUS loan.
   
• Junior and senior students are eligible to borrow an additional $5,000 unsubsidized Stafford Loan if their parent(s) are denied a Parent PLUS loan.
   
• An academic year at Lycoming College is composed of a minimum of 30 weeks of instructional time during which a full-time student is expected to complete at least 24 credit hours.  These standards are used in determining eligibility for federal student aid and loan proration.
   
• Effective for the 2006-2007 school year the College has redefined its definition of academic year.  Starting with Fall 2006 an academic year at Lycoming College is composed of a minimum of 30 weeks of instructional time during which a full-time student is expected to complete at least 30 credit hours.  Full time enrollment status is considered 12 credit hours.  These standards are used in determining eligibility for federal student aid and loan proration.
   
• Eligibility for the subsidized loan may change if you receive additional non-college aid that was not known by the College at the time the award notice was printed or if corrections are made to the FAFSA which change the EFC.
   
• The MPN can be submitted as soon as possible prior to the new school year, but it should be submitted no later than June 15th .  The Federal Stafford Master Promissory Note (MPN) is a legal document.  By signing the Stafford MPN, you promise to repay your current and future Stafford Loans.  This Note is valid for 10 years and does NOT require you to complete another MPN for subsequent borrowing, unless you elect to use a different lender than what was submitted on the original MPN, or due to a request made by the lender or school.
   
• Per Federal regulations, about 3% of the gross loan amount is deducted as a federal origination/insurance fee. For example, if you are eligible for $1,000 ($500 per semester), the NET amount of the loan proceeds for the year will be $970 ($485 per semester). Only the net amount may be used to reduce the college bill.
   
• Repayment of the loan principal is deferred until six (6) months after you graduate or cease to be enrolled on at least a half-time basis.
   
• Repayment is made to the lender on a monthly basis, and the maximum repayment period is ten years.
   
• For more information regarding the Guaranteed Student Loan program please refer to the FSA for Students web site.

Federal Perkins Loan

A need-based, low-interest federal loan awarded to students who demonstrate exceptional financial need.  Priority is given to students who meet the March 1st priority deadline.  Lycoming College is the lender, and the loan is made with government funds.  You must repay this loan.  Awards vary, but cannot exceed $4,000 per year.  Funding is limited; therefore, not all students meeting the criteria will receive Federal Perkins Loan funds.   

No interest accrues while in school, and repayment of the loan is deferred until nine (9) months after you graduate or cease to be enrolled on at least a half-time basis.

When repayment begins, the interest rate will be five (5) percent. Billing is handled by an outside agency; however, payments are made directly to Lycoming College on a monthly basis. The maximum repayment period is ten years.

For more information regarding the Federal Perkins Loan program please refer to the  FSA for Students web site.

Apply online for a Perkins Loan.

Gate Loan

If the Gate loan is listed on your award letter you are eligible to apply.  The Gate Loan is a low interest, private loan featuring deferral of principal and interest charges until after graduation and a 13 year repayment schedule.  Gate loans are serviced by PHEAA's Student Loan Servicing Center.

Apply online for a Gate Loan

Federal PLUS Loan

Loan approval is normally based on credit history, not income.  A parent will be considered credit worthy unless they have experienced:  account balances past due more than 90 days; default on any type of loan; foreclosure or repossession; outstanding tax liens; or unpaid judgments.  This loan is not based upon financial need.

The interest rate is variable based on the 91-day U.S. Treasury Bill plus 3.1%, capped at 9%.  The rate is adjusted every July 1.

Parent borrowers must choose a lender for their loan.  Lycoming College currently works with two preferred lenders:  Edamerica (Lender Code 831453) and Wachovia (Lender Code 813830).  Both lenders provide electronic processing and, in most cases, a guarantee and approval of your loan within 24 hours after processing.  If you are thinking about using a different lender by have questions about which is best for you, feel free to call Lycoming College's Financial Aid Office and we will be happy to advise you and guide you through the process.

Apply online for a PLUS Loan