2009-2010 Stafford Loan

Union College is pleased to announce that we will be participating in the Federal Direct Loan program beginning with the 2009-10 academic year.  This means that if you borrow a federal Stafford Loan for the 2009-10 academic year, your funding will come directly from the federal government instead of a private lender as in the past. Click here for more information.

The fixed interest rate for a Subsidized Stafford Loan is 5.6%; the Unsubsidized Stafford Loan fixed interest rate is 6.8%.  Stafford Loans are subject to a 1.5% origination fee.  However, an upfront interest rebate of 1% is offered for borrowers as a repayment incentive.  In order to keep the up-front rebate, a borrower must make their first twelve monthly payments on time.   

INSTRUCTIONS

All borrowers, regardless of whether they have borrowed a Federal Stafford Loan in a previous years, must take the following steps to receive a Stafford Loan:

1.  Complete the Direct Loan Master Promissory Note (MPN) online.

2.  Complete the Direct Loan Stafford Entrance Counseling online (The entrance counseling session is a federal requirement.  It serves to provide students information regarding their rights and responsibilites as a borrower).

3.  Return to the Financial Aid Office the Stafford Loan Confirmation Form.

Union will receive notification electronically once the MPN and Entrance Counseling have been completed.  Your Stafford Loan(s) will be processed when all three items mentioned above have been completed. 

Please note:  If you would like to borrow a Stafford Loan but an offer was not included on your award letter, you must first complete the Free Application for Federal Student Aid (FAFSA) and notify the Financial Aid Office of your intent to borrow the loan.

IMPORTANT FACTS FOR STAFFORD LOAN BORROWERS:

  • The average Stafford Loan indebtedness for the graduating class of 2009 is $14,096.  Using that amount, a Stafford Loan borrower at 6.8% interest over 10 years would pay $165 per month, paying $5,767 in interest over the life of the loan.
  • Students must be enrolled at least half time to be eligible for the Stafford Loans. Half time is defined at Union College as 2 credits per term.  Students who drop below 2 credits in a term will enter their six-month grace period.
  • If you decide to withdraw prior to completing your program of study, you must contact the Dean of Students Office.