Stafford Loan Program
Overview
Federal Stafford Loans are available at Emerson College through the Federal Family Educational Loan Program (FFELP). The two types of FFELP Stafford Loans are Subsidized Stafford Loans and Unsubsidized Stafford Loans.
Description
Federal Subsidized Stafford Loan
The government pays the interest for this federally subsidized loan during the student's full-time enrollment, six-month grace period post enrollment, and authorized deferment period. These loans are based on demonstrated need determined by the Office of Student Financial Services.
| Undergraduate Students | |
|---|---|
| Maximum Loan Amount | Interest Rate |
| First Year: $3,500 | 6.0% |
| Second Year: $4,500 | |
| Third Year: $5,500 | |
| Fourth Year: $5,500 | |
| Loans for undergraduate students borrowed before July 1, 2006 have a variable interest rate. | |
| Graduate Students | |
| Maximum Loan Amount | Interest Rate |
| $8,500 | 6.8% |
| Loans for graduate students borrowed before July 1, 2006 have a variable interest rate. | |
Federal Unsubsidized Stafford Loan
The student is responsible for all the interest that accrues on this need-based loan, including interest that accrues while in school. Interest also accumulates during deferment and the grace period. Once the student enters repayment the interest becomes part of the loan principal in a process called capitalization.
Students without full eligibility for the Federal Subsidized Loan are eligible for this loan program. Limits are adjusted for joint borrowing of these subsidized and unsubsidized loans.
| Undergraduate Students | |
|---|---|
| Maximum Loan Amount | Interest Rate |
| First Year: $5,500 | 6.8% |
| Second Year: $6,500 | |
| Third Year: $7,500 | |
| Fourth Year: $7,500 | |
| Loans for undergraduate students borrowed before July 1, 2006 have a variable interest rate. | |
| Graduate Students | |
| Maximum Loan Amount | Interest Rate |
| $20,500 | 6.8% |
| Loans for graduate students borrowed before July 1, 2006 have a variable interest rate. | |
If you have questions specifically regarding your Stafford Loan or the Stafford Loan Promissory Note process send an email to studentloans@emerson.edu.
Eligibility
Only students with completed financial aid applications are eligible to apply for Stafford Loans. If you have not received a Financial Assistance Statement listing your eligibility for a Stafford Loan please contact the Student Service Center to check the status of your application.
Process
Emerson College will notify your lender you are attending Emerson College and certify your eligibility for a Stafford Loan. A fall semester applicant's lender will be notified in late June. A spring semester applicant's lender will be notified starting in December.
If you have previously not received a Stafford Loan at Emerson College, you must sign the Emerson College Financial Assistance Statement and complete the Master Promissory Note and Entrance Interview. To complete the Federally required Entrance Interview, please log onto www.mappingyourfuture.org and follow the left hand link to online Student Loan Counseling. If you have not already done so, you should contact your lender for instructions on how to access their Master Promissory Note (MPN). Most lenders will have the MPN available online, some may send you a paper MPN to complete.
If you have borrowed a Stafford Loan at Emerson College in the past you do not need to complete another Master Promissory Note and Entrance Interview. Just make sure you have signed and returned your Emerson College Financial Assistance Statement, accepting the new academic years loan amount.
Disbursement
Loans are disbursed in 2 equal installments after the student signs the appropriate promissory note. Repayment of principal and interest begins 6 months after the student is no longer enrolled at least half-time (8 credits for undergraduates and 4 credits for graduates).
Loans are disbursed in 3 installments for all returning graduate students who are enrolled for the summer term in addition to the Fall and Spring semesters.
The change from a variable to a fixed interest rate does not affect borrowers' variable interest rates on loans made before July 1, 2006.
Lenders
Emerson does not recommends Stafford Loan lenders to students. While we understand that you may have questions, we believe you have the right and ability to seek the education loan provider of your choice. If you would like a starting reference of where to research lenders that are participating in the educational lending market, we suggest:
- Look at your current banking relationships and ask them if they offer educational loan programs. Current banking relationships may include your personal accounts, mortgage company or credit card company.
- Contact your home state educational loan agencies. In New England these agencies are: Connecticut Student Loan Foundation, Massachusetts Educational Finance Authority, Maine Educational Loan Authority, NHHEAF (NH) , Rhode Island Student Loan Authority and Vermont Student Assistance Corporation . If you live outside of New England, your state most likely has their own agency. Ask your local high school for information or do a web search.
- For a broader range of information you could visit www.finaid.org a free, non-Emerson affiliated website that give tips and information on many financial aid topics including loans.
