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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 been disbursed.

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) using your FSA ID.

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 through-

out 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 (using your

FSA ID) is valid for 10 years and you are not required

to complete another MPN while enrolled at Lycoming.