Direct Subsidized Loans
Federal Direct Stafford/Ford Loans are
awarded based on your financial need as determined by your school, in part from
the information you provide on the FAFSA. With a Direct Subsidized Loan,
the federal government does not charge you interest before you begin repayment
or during authorized periods of deferment (postponement of repayment).
Direct Unsubsidized Loans
Federal Direct
Unsubsidized Stafford/Ford Loans are not awarded on
the basis of need. If you are an eligible student, you may borrow up to the cost
of your attendance minus any other financial aid you receive. However, you may
not borrow more than the maximum annual amount. (See table below.) The federal
government charges you interest from the time the loan is paid out to you until
you pay the loan in full.
2007-2008 Stafford Loan Limits Based on Grade Level for Dependent Students
| Freshman | $3500 |
| Sophomore | $4500 |
| Junior | $5500 |
| Senior | $5500 |
| 5th Year/Other | $5500 |
Maximum Undergraduate Stafford Loan Limit: $23,000
What is a Master Promissory Note (MPN)?
The MPN is a promissory note that can be used to make one or more Direct
Stafford loans for one or more academic years (up to 10 years).
How do I complete my MPN?
The
electronic MPN, available at
http://dlenote.ed.gov allows you to complete and sign an MPN on the web. The
MPN authorizes Lawrence University (LU) to credit the Direct Loan funds to your
LU student account. Once you complete the MPN, you will not have to complete
another Direct Loan Promissory Note for the duration of your LU education.
Must I complete any other requirements before receiving my Direct Loan funds?
Yes. You must complete Direct Loan Entrance Counseling, available online at
http://www.dlssonline.com/entrancecounseling/main-entc.asp prior to
receiving your Direct Loan funds. Entrance counseling can be completed online
at any time, before or after completing your MPN.
What are the current interest rates?
The current interest rates for new Federal Stafford Loans disbursed on or after July 1, 2006 is 6.8%. This is a fixed interest rate.
How do I know the amount of my loan?
Your signed Lawrence University Financial Aid Award letter indicates your
acceptance of and request for Federal Direct Stafford Loan funds for the
upcoming academic year. Upon processing, you will receive a Loan Disclosure
Statement directly from the Direct Loan Origination Center that informs you of
your loan period, anticipated disbursements and the type of loan (subsidized
and/or unsubsidized) borrowed.
Will the loan funds appear on my statement of account?
Loan amounts will appear on your statement of account regardless of whether or
not you have completed your MPN. However, loan proceeds WILL NOT BE CREDITED to
your account in the Business Office until the Office of Financial Aid receives
acknowledgement of a fully completed, signed copy of your MPN from the Direct
Loan Program or a fully completed, signed copy is received by the LU Office of
Financial Aid.
The Federal Perkins Loan program is administered by the Office of Financial Aid. Funds from this program, when available, are loaned to the neediest students, as determined by the needs analysis. If a student is eligible for a Perkins Loan, the loan amount they are eligible for will appear on their award notification. Master Promissory Notes for new Perkins Loans are signed in the Business Office at the beginning of the academic year. Interest is at a fixed rate of 5%. Payment and interest are deferred until nine months after a student graduates or falls below half-time enrollment
Private Educational Loans (also known as Alternative Loans) are loans through a lending institution and are not part of the federal government programs. Private educational loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted. Research all possibilities for scholarships, grants, work-study, and federal loan programs before borrowing from an alternative loan program. We have provided a few links to help you get started in researching private loan options. Choose the loan that best suits your needs and remember to borrow only what you need!
Private Educational Loan information on finaid.org
For Federal Parent PLUS Loan options, please see our financing page.