FEDERAL STAFFORD LOANS

Federal Subsidized and Unsubsidized Stafford Loans

Stafford Loans are federally backed student loans that enter repayment six months* after the student graduates from college or he/she ceases to be enrolled as at least a half time student. Students must file the FAFSA in order to establish eligibility for Stafford Loans.

A Subsidized Stafford loan is a need based student loan on which the government is responsible for paying the **5.6 % interest while the student is enrolled in school and during the six month grace period* after a student ceases to be enrolled at least half time.

An Unsubsidized Stafford loan is a non-need based student loan on which the student is responsible for paying the 6.8 % interest while he or she is enrolled in school and during the six month grace period* after a student ceases to be enrolled at least half time.

Both the Subsidized Stafford Loan and Unsubsidized Stafford Loan are assessed a 1% guarantor default fee as well as a **.5% origination fee at disbursement.

Freshmen are eligible to borrow up to a maximum of $5500, sophomores up to $6500, and juniors and seniors up to $7,500 in a combination of Subsidized and Unsubsidized Stafford Loans. The types and amounts awarded are dependent on demonstrated financial need reflected by the Students FAFSA and Cost of Attendance.

(**) Interest rate of 5.6% and the Origination fee of .5 % applies to loans issued after July1, 2009. Current interest rate for 2008-2009 is 6% and origination fee is 1%.

(*) The grace period is only available once during the life of a loan. If a student leaves school, uses the six month grace period and starts into repayment but later decides to re-enter school, the Stafford Loan payments may be postponed but the six month grace period for that loan will not be renewed. Subsequent Stafford loans will have their own six month grace period.

How to Apply:

You must complete the following steps in order for Maryville College to process and disburse your Stafford loan!

Step 1: Maryville College Financial Aid Award Acceptance

If you are a student at Maryville College, your Financial Aid Award will be available to you electronically through the Maryville College On-line Financial Aid System. When your Financial Aid Award is ready, you will receive an email from the Maryville College Financial Aid office notifying you that your award is ready. This email will contain the unique Student ID Number assigned to you and can be utilized with the MC On-line Financial Aid system only. Please make sure you have provided a valid email address on your FAFSA when applying for Financial Aid.

Once you receive your Unique FA Student ID, you will need go to the On-line Financial Aid System website and follow the instructions to have your MC Online Financial Aid System PIN emailed to you. For privacy and security of your information, please do not share your FA Student ID or PIN with anyone.

Once you have obtained your Student FA ID and PIN, you may access the On-line Financial Aid system. To accept the Stafford Loan (and any other awards) choose the word "accept" then click on "submit" to finalize your acceptance. Stafford loans will not be processed until after you have accepted them in your financial aid award.

If you need assistance with the On-line Financial Aid System, please call your Maryville College Admission Advisor or the Financial Aid Office at (865) 981- 8100.

If you are a returning student and have received a Stafford Loan at Maryville College in previous years, once you accept your loan electronically on the Maryville College On-line Financial Aid System, your loan will automatically be processed with your lender.

Returning Stafford Loan borrowers may stop here.

Step 2: Complete an Entrance Interview and Select Lender

First time borrowers, there are 2 steps required to obtain a Federal Student Stafford Loan. You must first complete a mandatory Stafford Loan Entrance Interview then select a lender and sign the lenders Stafford Master Promissory Note (MPN). To assist you in your lender selection process, we are offering our students a Recommended Lender List. The entrance interview and MPN signature process is combined into one simple process for lenders on the Maryville College Recommended Lender List.

Please allow about 20 minutes to complete both the Entrance Interview and electronically sign your MPN. Your Stafford Loan cannot be processed until both steps are fully completed.

If you chose a lender from the Recommended Lender list you may stop here.

You may opt to select a lender not on the Maryville College Recommended Lender list, but you must still complete a Stafford Loan Entrance Interview. Failure to complete the entrance interview will delay processing of your Stafford Loan. The following link will take you to the entrance interview:

Entrance interview only

If you choose a Stafford Loan lender not on the Maryville College Recommended Lender list, please inform your lender that they must certify and disburse your loan to Maryville College thru the ELM Loan Processing Service. It is the responsibility of the borrower to insure that all loan paperwork is completed and the Stafford Loan disburses to Maryville College in a timely manner.

CLICK HERE TO ACCESS STAFFORD RECOMMENDED LENDER LIST