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Federal Stafford Loan - Important information regarding Lycoming's Suggested Lenders.
Apply for a Stafford Loan Online
- Select a lender from the drop down box provided.
- 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.
- 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.
- 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.
- 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.
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.
- 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 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.
- A 1% federal default fee may be deducted from the loan proceeds prior to disbursements. If you borrow $3500, $35 will be deducted from the amount you borrow.
- 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 -Important information regarding Lycoming's Suggested Lenders.
The Federal Parent PLUS Loan is a low-interest, government sponsored loan available to parents of dependent students.
Parents may borrow up to the cost of attendance less other financial aid received by the student.
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.
Fixed interest rate of 8.5% as of July 1, 2006.
A 4% Federal Originiation Fee/Federal Default Fee may be deducted from the loan proceeds prior to disbursements.
Parent PLUS Loans are federally insured and can be discharged upon death or total and permanent disability.
Repayment typically begins within 60 day after full disbursement of the loan.
Repayment can be deferred while the student is enrolled at least half-time through a Post-disbursement forbearance. The following lenders offer a Post-disbursement forbearance: Edamerica, National City, Chase, Citizens and M&T Bank (as of January 2008).
Apply online for a PLUS Loan
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