How do i apply for a stafford loan
Am I eligible for a Federal Direct Stafford Loan?
To be eligible for a Federal Direct Stafford loan, you must satisfy a number of requirements, including (but not limited to):
- Be enrolled at least half-time
- Maintain satisfactory academic progress
- Be registered with the Selective Service (men only)
- Be a U.S. citizen, national, or eligible non-citizen
What kinds of Federal Direct Stafford loans are available?
There are two kinds of Federal Direct Stafford loans: subsidized and unsubsidized.
Subsidized loans are for Undergraduate students only and are need-based, meaning they’re reserved for students who have demonstrated financial need on the FAFSA. Also, the government pays the interest on a subsidized Direct Stafford loan as long as you’re enrolled at least half time and during periods of deferment. After that, the interest is your responsibility.
Unsubsidized loans are not need-based, meaning they’re available to all eligible students regardless of how much financial help they need. You’re responsible for the interest on an unsubsidized Direct Stafford loan as soon as UConn receives the money. You can choose to pay the interest while you’re still in college or defer interest payments until you graduate. If you choose the second option, the interest that accrues while you are in-school will capitalize (be added to your principal balance) when you enter repayment.
As a first time borrower at UConn, how do I accept a Federal Direct Stafford Loan?
You must go to the Student Administration System to accept the Federal Direct Stafford Loan. Beginning in May, your loan
will be electronically transmitted to the U.S. Department of Education. You will then receive an email from our office with instructions regarding completion of the Master Promissory Note (MPN). You will also receive instructions from our office on completing the entrance counseling requirement. Loan funds will not be deferred on your fee bill or disbursed to your student account until you complete the MPN and the entrance counseling requirement, which details the terms and conditions of the loan.
Note for Transfer Students: If you previously borrowed a Federal Direct Stafford Loan through the Direct Loan Program, you will not need to complete a new MPN. If you previously borrowed a Federal Stafford Loan through a bank or private lender, you will need to complete a new MPN for the Direct Loan Program.
As a continuing borrower at UConn, how do I apply for a Federal Direct Stafford Loan?
When you accept a Federal Direct Stafford Loan, our office will electronically transmit your requested loan amount to the U.S. Department of Education. Once you have completed your Federal Direct Stafford Loan MPN, you will not be required to complete a new MPN in future years. In order to keep track of your loan debt, it is important to pay attention to your award notices and disclosure statements from your Direct Loan Servicer.
How much can I borrow?
The amounts listed below are the maximums a dependent undergraduate student may borrow each year. However, a student may never borrow more than the cost of education minus any other financial aid received.Source: financialaid.uconn.edu