Unsubsidized Stafford Loan
(for interest rate go tohttp://studentaid.ed.gov/
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
Students borrowing from the Federal Direct Stafford
Loan for the first time must go towww.StudentLoans.gov
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
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.