Federal Direct Stafford Loan
Apply for a Federal Direct Stafford Loan Online (www.studentloans.gov)
- You must complete a FAFSA online at www.fafsa.ed.gov
- New borrowers take Loan Entrance Counseling online at www.studentloans.gov. You must log in under "Manage My Direct Loan". You need your FAFSA PIN number. Click on the appropriate link for Loan Entrance Counseling. The session will take about 20 minutes. If you have already borrowed a Stafford Loan, you can skip this step.
- All borrowers (even those who have previously borrowed a Stafford Loan) must electronically sign a Master Promissory Note (MPN) at www.studentloans.gov. You must log in under "Manage My Direct Loan". You need your FAFSA PIN number. If you are already logged in, click on the appropriate link to sign a Master Promissory Note. If you forgot your PIN, you can request a duplicate PIN at: www.pin.ed.gov, or you can click on "PIN site" in the "Manage My Direct Loan" box at www.studentloans.gov.
Lycoming College is notified electronically when you complete your Loan Entrance Counseling as well as signed your MPN, so you do not need to notify the Financial Aid office.
What are the Terms and Conditions of a Federal Direct Stafford Loan?
- Federal Subsidized Stafford Loans (no interest accrues while in school or during grace): 2010-2011 there is a 4.5% fixed interest rate.
- Federal Unsubsidized Stafford Loans (interest accrues while in school & during grace): 2010-2011 there is a 6.8% fixed interest rate.
- There is a 1.5% Origination Fee with a 1% Upfront Rebate, which requires 12 on-time payments during repayment. Basically the net fee is 0.50%.
- 0.25% interest rate reduction for borrowers who elect automatic debit of monthly payments.
- There is a six-month grace period.
After the Federal Direct Stafford loan has been originated/created, a Disclosure Statement from the William D. Ford Federal Direct Loan Program will be mailed to the student at the address provided on the FAFSA. This Statement details all the terms and conditions of the Federal Direct Stafford Loan.
For more information regarding Federal Direct Stafford loans, please click here
Loan Limits under H.R. 5715
Other Important Information regarding loans:
- 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.
- You must be attending Lycoming College at least half-time to be eligible for a Stafford Loan. Half-time enrollment is defined as 6 - 8 credit hours. Three-quarter time enrollment is defined as 9-11 credit hours.
- 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 if you wish to have your loan appear on your bill as estimated financial aid. The 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.
- 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 Department of Education on a monthly basis, and the maximum repayment period is ten years.
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.
Federal Direct PLUS Loan
Who is Eligible for a Parent PLUS Loan?
You must be the student's biological or adoptive parent or the student's stepparent. Both parents may get a PLUS loan as long as the total aid package does not exceed the student's cost of attendance.
How Do I Apply for a Parent PLUS Loan?
- To obtain a Federal Direct PLUS loan please complete the application.
- You must sign a Master Promissory Note (MPN) for Parent PLUS loans online at www.studentloans.gov. You will need your FAFSA PIN number to use as your electronic signature.
What are the Terms and Conditions of a Federal PLUS Loan?
- 7.9% fixed interest rate
- 4% fee with an upfront 1.5% rebate, which means a net fee of 2.5% that is deducted from the disbursed amount.
- Repayment:
- Will begin 60 days after final disbursement is made, or
- Payments can be deferred while student is enrolled at least half-time.
- Call Direct Loan Servicing to have the loan deferred (deferral needs to be renewed each year) at 1.800.848.0979.
- You can make interest only payments during deferment, if you choose.
- Standard Repayment term is 10 years.
- After the Federal PLUS loan has been approved by Direct Loans, a Disclosure Statement from the William D. Ford Federal Direct Loan Program will be mailed to the borrower at the address on the PLUS loan application. This Statement details all the terms and conditions of the Federal PLUS loan.
- After the Federal PLUS loan has been approved by Direct Loans, a Disclosure Statement from the William D. Ford Federal Direct Loan Program will be mailed to the borrower at the address on the PLUS loan application. This Statement details all the terms and conditions of the Federal PLUS loan.
For more information regarding Federal Direct Loans, please click here.