Federal Direct Stafford Loan for students
How Do I get a Federal Stafford Loan?
First-Time Borrowers must complete the following steps at the Studentaid.gov website:
- Submit a valid FAFSA application for the academic year in which Stafford Loan funds are needed.
- Complete the Entrance Counseling to ensure you understand the responsibilities and obligations you are assuming.
- Complete the Annual Student Loan Acknowledgement.
- Complete the Undergraduate Student Master Promissory Note (MPN). This is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Dept. of Education.
Previous Borrowers must complete only these following steps at the Studentaid.gov website:
New Transfer Borrowers must complete these following steps at the Studentaid.gov website:
Lycoming College is notified electronically when you complete your Loan Entrance Counseling, MPN and Annual Student Loan Acknowledgement, so you do not have to notify the Financial Aid office that these tasks have been completed.
Note: Annual loan limits for the Federal Direct Stafford Loan:
- First-Year: $5,500 (up to $3,500 may be Subsidized)
- Sophomore: $6,500 (up to $4,500 may be Subsidized)
- Junior: $7,500 (up to $5,500 may be Subsidized)
- Senior: $7,500 (up to $7,500 may be Subsidized)
First-Year and Sophomore independent students and dependent students whose parents have been denied the PLUS Loan can borrow an additional $4,000 in unsubsidized Stafford Loan. Junior and Seniors can borrow an additional $5,000.
Federal Direct PLUS Loan for parents
Who is Eligible for a Parent PLUS Loan?
You must be the student's biological or adoptive parent. A stepparent is eligible to borrow a PLUS loan if his or her income and assets were taken into account when calculating the dependent student's EFC. Both parents may get a PLUS loan as long as the total aid package does not exceed the student's cost of attendance. A legal guardian is not considered a parent for Federal Student Aid purposes.
How Do I get a Federal PLUS Loan?
Parent Borrowers must complete the following steps at the Studentaid.gov website. The steps below must be completed for each year the parent wishes to borrow through the Federal Direct PLUS Loan Program:
Lycoming College is notified electronically by the U.S. Dept. of Education when the MPN and Annual Student Loan Acknowledgement are completed.