Q: How do I
apply for a Stafford Loan?
A: We offer two
ways to apply for Stafford Loans:
-
Apply on-line through WebDSIS.
1. Login to WebDSIS and click on Financial Aid
2. Click on Award Information
3. Click on the Stafford/Direct Loan Application
Link
-
Stop by our office in Wingate Hall and complete a paper application.
Q: What is
the difference between Subsidized and Unsubsidized Stafford
Loans?
A: Students are
offered two different types of Stafford Loans, depending on their
need.
-
Subsidized Stafford Loans do not accrue interest while the student is
enrolled at least half time in a degree program.
Interest does accrue after
the loan goes into repayment.
-
Unsubsidized Stafford Loans accrue interest while the student is in
school
and during repayment.
Q: What is the
current Stafford Loan interest rate?
A: The current
Stafford Loan interest rates were set on July 1, 2008.
-
6% interest rate on Subsidized Stafford Loans for undergraduate
students.
-
6.8% interest rate on Unsubsidized Stafford Loans for undergraduate
students.
-
6.8% interest rate on Subsidized and Unsubsidized Stafford Loans for
graduate students.
Q: How much can I
borrow in Stafford Loan funds?
A: Federal regulations
specify the maximum Federal Stafford Loan amount students
can borrow each academic year, depending on grade
level. Actual loan eligibility
is specified on a student's individual financial aid
award and may be less than the
annual maximum.
Stafford Loan Limits (effective July 1,
2008)
|
Grade Level and
Dependency |
Credit Hours
Earned |
Maximum
Subsidized Stafford |
Maximum Stafford
(subsidized and unsubsidized) |
|
Dependent
first-year |
less than 24 |
$3,500 |
$5,500 |
|
Dependent
sophomore |
24 -53 |
$4,500 |
$6,500 |
|
Dependent junior
or senior |
54 and above |
$5,500 |
$7,500 |
|
Independent
first-year |
less than 24 |
$3,500 |
$9,500 |
|
Independent
sophomore |
24-53 |
$4,500 |
$10,500 |
|
Independent
junior or senior |
54 and above |
$5,500 |
$12,500 |
|
Graduate student |
any credit hours |
$8,500 |
$20,500 |
NOTE: Dependent
students whose parents are denied a Federal PLUS Loan are eligible for the
independent student limits if there is a valid PLUS Loan denial (dated
within the last year) on file with our office.
Q: How do I know if
my loan has been processed?
A: Login to WebDSIS to
check the status of your loan. Check the Award Information
and Loan Status Screens.
-
If the Award Information Screen shows that you have Stafford Loan
eligibility
and the Loan Status Screen shows “No loan data
available,” then you have
either not applied for your loan at all or we have not
recorded the loan in our
system. Please allow our office 2 - 3 days to
record the loan after you have
applied.
-
If the Award Information Screen shows that you have Stafford Loan
eligibility
and the Loan Status Screen shows the loan status as
"pending," then we
have recorded the loan, but it has not been processed.
-
If the Loan Information Screen shows the loan status as "approved," then
your loan has been processed. You will also
receive an email or letter from
our office when the loan has processed.
Q: Who do I choose
as my lender?
A: If you are a first
time borrower, please
click here to view our Stafford Loan
Lender
List. If you are a previous borrower, please choose the same lender
you used last
year, if possible. You can find this information listed on WebDSIS
under Loan
Status for the previous year.
NOTE: TD Banknorth is no longer lending for Stafford Loans, so
previous borrowers
are asked to select a new lender.
Q: How do I
complete my Master Promissory Note (MPN)?
A: You must complete
an MPN if you are a first time borrower or if you have changed
lenders.
-
If you chose a lender from our Lender List (Citibank, Nelnet, Maine
Education
Service, Norway Savings, or University Credit Union),
you may complete your
MPN online through
Sallie Mae.
-
If you chose Bank of America as your lender,
click here to complete your
MPN.
-
If you chose any other lender, the MPN will be mailed to your permanent
address.
NOTE: If you
previously borrowed through Bank of America and choose to select them
again this year as your lender for 2008 - 2009, you will need to complete
a new
MPN. Please follow the link above.
Q: How do I
complete my Entrance Counseling (Interview)?
A: All first time
borrowers must complete on-line
Entrance Counseling.
Q: When can I
expect my loan to disburse?
A: Please allow 10 –
15 business days after the loan has processed and all of the
requirements are complete (MPN and Entrance Counseling) for the loan
to disburse.
Q: How do I know if
my loan has disbursed?
A: Login to
MaineStreet and go to your Student Service Center to view your Student
Account. You will see
the Stafford Loan listed in the detailed view of your bill if it
has disbursed.
Q: Why has my
Stafford Loan disbursed for less than it was approved?
A: As of July 1, 2008,
most Stafford Loan lenders are assessing a 2% processing fee.
Q: When will I need
to repay my Stafford Loans?
A: You will be granted
a 6 month grace period before your loans enter repayment.
The grace period begins when you graduate or your
enrollment drops below half
time.
