Many students receive both a Subsidized and an Unsubsidized Stafford Loan for the same period. The total of your combined Stafford Loans may not exceed the annual loan limit. The interest rate for undergraduate Subsidized Loans disbursed after July 1, 2009, is fixed at 5.6%; the interest rate for undergraduate Unsubsidized, graduate Subsidized, and graduate Unsubsidized Loans disbursed after July 1, 2006, remains fixed at 6.8%. An origination fee and Federal Default Fee may be deducted from your loan before it is disbursed. For more information go to Student Aid on the Web.
↵ Accepting a Federal Stafford Loan:
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Read all information on your financial aid Award Notification Letter. The award letter lists all the aid programs and the maximum amounts that you are eligible to receive.
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Determine the amount you need to borrow. You may borrow any amount up to the maximum listed on your award letter. Compare all aid amounts to your anticipated tuition and fees and other education-related expenses (transportation, books, etc.) which you may incur. Then determine the amount that you need to borrow. An origination fee is deducted from your loan before it is disbursed. The net amount of the disbursement varies between 96% and 97% of the principal (gross) amount. You may want to factor in an allowance for this fee when determining the amount to request.
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Complete the Loan Acceptance Form (the last page of the Award Notification Letter) and return it to the Student Finance Office. (For additional information and instructions, please see the Stafford Loan Guide.) Indicate the amount you want to accept (borrow) and choose a lender. Return the Loan Acceptance Form to the Student Finance Office.
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Complete a Master Promissory Note (MPN) if this is your first loan or you are changing lenders. Your lender will send the MPN and/or information about completing the MPN online to your permanent home address. Many lenders have online and electronic signature capability.
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If this is your first Federal Stafford Loan, you must complete Stafford Loan Entrance Counseling before your loan funds can be disbursed. This is a federal requirement. NLU cannot release a Stafford loan disbursement to you until you have completed Entrance Counseling.
The lender will disburse the funds to NLU through the National Disbursement Network (NDN). This is a two to three business day process. When the funds are received, NLU will review all eligibility requirements and then post the funds to your student account. If federal funds create a credit balance, NLU will refund the excess funds to you by mailed check. Refund checks are generally processed within the same week but always within 14 business days.
⇒ Selecting a lender:
For more information about the Stafford Loan and for suggestions on how to select a lender, please see our Stafford Loan Guide.
⇒ Preferred lenders:
