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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 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 (using your FSA ID) is valid for

10 years and you are not required to complete another

MPN while enrolled at Lycoming.