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Federal Stafford Loan
Program
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 One of the biggest
sources of financial aid for college is the federal Stafford Loan Program.
Through this program students can borrow money for college regardless of
income or financial need.
Many Clarion students qualify for a subsidized
Stafford Loan, which means that their loan is interest-free while the
student is enrolled in college.
If, according to the FAFSA, the student
does not demonstrate need, she or he may still borrow the money as an
unsubsidized loan. Unsubsidized means that interest is charged on the loan
while the student is in college. Students with unsubsidized loans have the
option of paying only the interest on the loan while they are in college;
or they can allow the interest to accumulate along with the principal (the
amount borrowed) and begin repayment on both interest and principal when
they graduate. The interest rates on the unsubsidized federal Stafford
Loan vary from year to year, but never exceed 8.25%.
The application for a Stafford Loan is now called a
Master Promissory Note (MPN). The MPN is filled out only once by the
student and is returned to PHEAA. Students can apply on line by using the
AES icon below, or they can
obtain a paper application for the MPN through PHEAA by calling
1-800-692-7392, or through any bank, savings and loan association, and
most credit unions. Once a student has filed an MPN, it is valid for ten
years. With the MPN on file, the college or university that the student
plans to attend is permitted to automatically certify a loan for the
student at the maximum amount that she or he is eligible to borrow.
Students can save money on their Stafford Loans by
choosing a
Keystone Best Lender.
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How
Much Can a Student Borrow through the Stafford Loan Program?
as of July 1,
2008 |
|
College Credits Earned |
Base Amount subsidized or
unsubsidized |
Additional Unsubsidized
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Total |
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0-29 |
$3,500 |
$2,000 |
$5,500 |
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30-59 |
$4,500 |
$2,000 |
$6,500 |
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60-graduation |
$5,500 |
$2,000 |
$7,500 |
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Dependent Students with a
PLUS denial on file, and independent students
as of July 1, 2008 |
|
College Credits Earned |
Base Amount subsidized or
unsubsidized |
Additional Unsubsided |
Total |
|
0-29 |
$3,500 |
$6,000 |
$9,500 |
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30-59 |
$4,500 |
$6,000 |
$10,500 |
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60-graduation |
$5,500 |
$7,000 |
$12,500 |
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Preparatory/Graduate |
$5,500 |
$7,000 |
$12,500 |
|
Teacher Certification |
$5,500 |
$7,000 |
$12,500 |
|
Graduate students |
$8,500 |
$12,000 |
$20,500 |
These amounts are for the academic year, or two
semesters. Students who enroll in only one semester, or who are between
half-time (6 credits per semester) and full-time (12 or more credits per
semester) may not be able to borrow the full amount.
The maximum that can be borrowed through the Stafford Loan
program for undergraduate study for a dependent student is $31,000; however,
only $23,000 can be subsidized. The total amount independent undergraduate
students and undergraduate students with PLUS denials can borrow is $57,500;
however, only $23,000 can be subsidized.
Remember that student loans have to be paid back some
day. To calculate what your monthly student loan repayment would be at
varying borrowing levels and at different interest amounts, visit the AES
(American Education Services/PHEAA) website at
www.educationplanner.com and choose the
segment on "Paying," then on "Calculators," then on "Student Loan Repayment
Calculator". Or visit
www.finaid.org,
look under “Loans,” and then under “Repayment Plans.”
These websites also offer critical information about loan consolidation.
*Independent according to the federal government’s
definition, relative to financial aid. Dependent students whose parents
have been denied a PLUS loan may also borrow this amount.
If you don’t want to borrow the
maximum amount...
You may borrow less than the maximum amount stipulated by
federal regulations. If you want to borrow less, or cancel your loan
entirely, and your loan was originated through AES/PHEAA you can either call
them at 1-800-692-7392, or you can access your on-line loan account with
AES/PHEAA
to make the reduction.
PA and out of state students who borrow through a Pennsylvania bank will
have their loans serviced through PHEAA. PHEAA offers students 24 hour
a day/ 7 day a week access to their accounts (including their state grant
status, if they are PA residents). They can apply for a loan, complete
entrance and exit interview forms, make payments, lower the amount of a
certified loan that they wish to borrow, request deferments and/or
forbearance, apply for consolidation, and much more through the secure web
server.
PHEAA also offers what may be the best deals on
Stafford Loans for first-time borrowers through the
Keystone Best Loan Program. Information on
this program can be found on the PHEAA website here:
PHEAA, or can be obtained
by calling PHEAA toll-free at 1-800-692-7392.
Have questions about your Stafford Loan? You can call PHEAA
toll free at 1-800-692-7392, or you can call the Student Loan Servicing
Center at 1-800-233-0557.
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Important Note about your
next year's loans
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Students must earn a minimum of 21 new credits each year to
be eligible to borrow at the same level for the summer or for the next
academic year. However, students who want to be able to borrow at the next
level (from $3500 to $4500 or from $4500 to $5500) must complete at least 30
new credits for each year they borrow. Please also review the discussion
below on how to keep your aid.
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Federal Perkins Loan
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The Federal Perkins Loan is an older federal loan designated
for students with significant financial need. Its interest rate is set at 5%
(subsidized while the student is in college). In addition to having a
current FAFSA on file, students interested in the Perkins Loan program must
file a Perkins Loan application, which is available in the Office of
Financial Aid (suggest an on-line application form with a link here). The
maximum amount a student can borrow per year through this program is $1000. As a campus-based federal aid program, Perkins loan funds are distributed on
a first-come, first-served basis to high-need students.
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Entrance and Exit Interviews
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Federal regulations require that all students who
borrow through the Stafford or Perkins Loan program sign an entrance
interview form before the school disburses (gives) the loan proceeds.
When signing the entrance interview, students are certifying that they
understand that they are receiving student loans, which must be repaid
some day. Incoming students who attend orientation are asked to complete
an entrance interview. Those students who did not fill out an entrance
interview during orientation may file one
here,
in the Office of Financial Aid, or in the Office of
Student Accounts in the lower level of Carrier Hall (insert link to
on-line entrance interview form). Students who are
about to graduate and who have borrowed through a federal loan program are
asked to complete an exit interview form. This form again reminds students
of their obligation to repay their student loan, and can be completed on
line
here or in the Office of Financial Aid.
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Federal PLUS Loans
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Parents may borrow for their child’s education through the
federal Parent Loan for Undergraduate Students (PLUS) program. They may
borrow up to the entire cost of attendance (tuition, fees, room, meals,
books, transportation, and personal expenses) minus any other aid that
their son or daughter is receiving. PLUS loans are not based on financial
need, and they have an adjustable interest rate that won’t exceed 9%.
As of July 1,
2008, parents who are approved for PLUS loans (Parent Loan for
Undergraduate Students) do not have to begin repayment of those loans
until their student has graduated from college.
The best deal for a PLUS loan is probably through PHEAA.
Apply on line using the AES icon below, or call PHEAA at 1-800-692-7392 and ask for a paper
application. If the parents are denied a PLUS
loan...
If a parent, or parents are denied a PLUS loan, they are
asked to send a copy of the denial letter to the Office of Financial Aid at
Clarion University. On receipt of the denial letter, federal regulations
permit Clarion to let the student borrow up to the amounts indicated under
the “independent student” column of the Stafford Loan borrowing chart.
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The
Addison H. Gibson Foundation Low-Interest Educational Loan Program
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.The Addison H. Gibson Foundation provides low interest (2% until one year
after graduation) loans to students from Western Pennsylvania.
Applicants must be enrolled as full-time students in a baccalaureate or
graduate degree program, with at least one full-time year of studies in
the current degree program completed within the past four months. They
must be in good academic standing, with a minimum G.P.A. of at least a
2.8, and must demonstrate financial need. For more details, visit
www.gibson-fnd.org.
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Alternative Loans
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The Stafford, Perkins, and PLUS are federal loan programs.
There are a number of banks that offer private loans to students and
parents. While the loans are not subject to federal financial aid
regulations such as
having a FAFSA on file, making satisfactory academic progress, completing
federal verification, and having limits on the amount borrowed based on the
number of credits earned, they are based on the credit-worthiness of the applicant
and/or the co-signer.
Private lenders offer a variety
of loan products to undergraduate, graduate and professional school students;
part-time students, continuing education students, and international
students. In most cases, students can apply on-line. And, in many cases, the
loans can be used to pay past due balances of education costs. There are
many reputable lenders to consider if additional
financing options are necessary. Students are cautioned to carefully compare
loans and lenders by reviewing items such as interest rate, fees, repayment
terms and customer service.
Click HERE for a more detailed explanation. You may also
wish to visit the
Pennsylvania
Education Lenders Association website for additional information on
securing a private loan.
These lenders are most
frequently chosen by Clarion University students and their parents.
Citibank CitiAssist Loan.
Serviced by CitiBank. Apply on-line at
www.studentloan.com,
or call 800-967-2400.
TERI.
The Education Resources Institute, Inc. is the largest nonprofit sponsor of
private loans for education. TERI partners with lenders like Bank of
America, Citizens Bank, National City Bank, SunTrust Bank, and Wachovia
Education Finance. To apply for a TERI loan, visit
www.teri.org/.
As of May 22, 2008, TERI will no longer make
loans to new applicants. They will continue to make loans to previous
borrowers.
Sallie Mae
Signature Loan.
Serviced by Sallie Mae. Apply on-line at
http://www.customschool.com/clarion/apply.
PNC Resource Loan.
Serviced by AES/PHEAA. Apply on-line at
www.eduloans.pncbank.com, or
call 800-762-1001.
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How to Keep Your Aid
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It is
your responsibility to be aware of federal and state guidelines that
affect your ability to receive and retain financial aid. This includes
Satisfactory Academic Progress. Under the Federal Academic Rights to
Privacy Act (FERPA), your academic advisor does not know if you are a
recipient of financial aid, and does not monitor your satisfactory
academic progress for financial aid purposes. Students must ensure that
they are making satisfactory academic progress toward a degree to
protect their ability to receive federal and state financial aid.
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You must file a FAFSA each year.
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You should report any additional
resources, such as outside scholarships, to the Office of Financial Aid.
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Be aware that both the federal and state
governments have regulations governing how much financial aid a student
may receive. Federal regulations limit financial aid to the cost
of attendance, which includes the budget figures that Clarion University
has provided for tuition, fees, room, board, books, personal and travel
expenses. Pennsylvania state grant guidelines limit the amount of
grant and scholarship aid (gift aid) to tuition, fees, room, board, and
an allowance established by PHEAA for books, travel, and personal
expenses. Students should expect that their financial aid may be
reduced if it exceeds federal or state limits.
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Financial aid recipients should notify the
Office of Financial Aid if they change their status from full time to
part time, from part time to full time, or if they withdraw from classes
or from the University, to make certain that their financial aid is not
affected.
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You must make satisfactory progress toward a
degree. Satisfactory Academic Progress means that full time students
must successfully complete at least 21 new credits each academic year
(or two consecutive semesters if the student began his or her Clarion
career in the spring semester, or if he or she stopped out for one or
more semesters) to qualify for federal aid (including Stafford, PLUS and
Perkins loans; PELL, SEOG, ACG, SMART and TEACH grants, and federal work
study). In addition, students must also attain and maintain a 2.00
or better cumulative grade point average. Should a student in his
or her first or second academic year earn less than a 2.00 cumulative
g.p.a., she or he will be placed on academic probation by the Office of
Academic Affairs. If the student appeals the academic probation
and the Office of Academic Affairs permits the student to return to
Clarion for the following semester, and if the student has earned the
required 21 new credits, federal financial aid will be reinstated.
Part time students must successfully all courses in which they enroll.
Courses from which you previously withdrew, repeated or failed do not
count toward satisfactory academic progress for either full or part
time students. If you need to repeat courses to improve your grade or
grade point average, you need to complete 21 new credits (full
time students) in addition to any courses you repeat to retain your
federal financial aid (24 credits for PHEAA state grant aid).
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For Pennsylvania state grant purposes, full
time students must successfully complete 24 credits each year.
Part time students must successfully complete at least six credits each
semester.
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If extraordinary circumstances (death in the
immediate family, hospitalization or serious illness) prevented you from
making satisfactory academic progress, you may appeal the loss of your
federal or state financial aid. The deadline to appeal for
currently enrolled students for their federal financial aid is June 30.
Students may appeal by submitting
this form
to the Office of Financial Aid. Students must appeal to
the Pennsylvania Higher Education Assistance Agency for the loss of
state grant aid. Contact Clarion University's Office of Financial Aid at
1-800-672-7171 option #2 for the appeal form, or download the form
here.
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Access to Student
Financial Aid Information
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Student access to financial aid information...
At Clarion’s
Web for Students and the
iClarion Information Portal,
students can file a FAFSA, view their financial aid and their tuition bills,
update their personal data form, review their grades, and see if there are
any holds on their accounts, among many other things.
If they used PHEAA as their guarantor on their student loans,
students can view their loan information, and state grant information if
they are Pennsylvania residents, on line at
www.pheaa.org.
Parent access to financial aid information...
The Family Educational Right to Privacy Act (FERPA)
restricts colleges and universities from sharing students’ academic and
financial records with unauthorized persons. If a student is independent
for financial aid purposes, staff in the Office of Financial Aid cannot
share his or her financial aid information with parents, spouses,
grandparents, siblings, friends, guidance counselors, friends, etc.
Similarly, if the student has signed a form in the Office of the
Registrar asking that information be released only to one parent (the
mother, father, stepmother etc.), personnel in the Office of Financial
Aid may not discuss that student’s financial information with the parent
who is not authorized to receive it.
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