Stafford Loans

The Stafford Loan offers you a low interest rate. It offers a six-month grace period after enrollment ceases or drops below half-time status. The amount of Stafford loan you may borrow is determined by your grade level in school and by limits set by the Department of Education.

There are two types of Stafford loans:

Subsidized: These are based on financial need, which is determined by completing the FAFSA; interest is paid by the government while you are enrolled at least half-time. For the 2008-2009 academic year, the interest rate is fixed at 6.0% for subsidized Stafford loans.

Unsubsidized: These loans are not based on financial need; interest starts accruing once the loan disburses. You may elect to pay the interest as it accrues or defer it until you enter repayment. For the 2008-2009 academic year, the interest rate is fixed at 6.8% for unsubsidized Stafford loans.

Effective July 1, 2008, undergraduate students are eligible to borrow up to $2000 in unsubsidized Stafford loan each academic year. As of that date, the aggregate Stafford loan limits will increase. Dependent undergradate students may borrow up to $31,000, of which no more than $23,000 may be subsidized. Independent undergraduate students may borrow up to $57,500, of which no more than $23,000 may be subsidized.

To be eligible for a Stafford loan, students must:

  • submit the FAFSA for each academic year she wishes to obtain a Stafford loan.
  • be a U.S. citizen or an eligible non-citizen.
  • be enrolled at least half-time as an undergraduate or graduate student.
  • have no prior outstanding student loan in default and not owe a repayment on any federal aid.
  • complete a Stafford loan application and Master Promissory Note (MPN).
  • complete entrance counseling prior to receiving the first Stafford loan at Saint Mary's College.
  • be meeting Saint Mary's Financial Aid Standards of Satisfactory Academic Progress.

To apply for a Stafford Loan:

  1. Select a lender and complete the application process with that lender. Although we recommend using one of the lenders listed below, you may use any participating lender for your Stafford loan. Online applications are typically processed more efficiently than paper applications, so students are encouraged to use the online application process. Most lenders do offer a paper application process, so please contact your lender of choice if you would like to complete a paper application.
  2. Complete the Federally required entrance counseling. Some lenders will have this built into their online application process. For those who do not, please click here to be directed to the online entrance counseling site.
  3. Complete your Master Promissory Note (MPN) with your lender. Most lenders allow you to complete the MPN online.

Preferred Stafford Lenders for 2008-2009

In order to generate a preferred lender list, we surveyed several lenders regarding their benefits and customer service practices. We also surveyed students regarding their experiences with their Stafford Loan lenders. We selected lenders for our preferred lender list based on the benefits they offer and the customer service they provide. Saint Mary's College did not accept any promises or offers from any lender relating to the terms of the loans or any services to borrowers at Saint Mary's College in exchange for that lender being included on our preferred lender list.

Please note that the lender benefits listed below are accurate to the best of our knowledge. Lenders may modify or discontinue benefits/payment incentives at any time, and other conditions may apply. Most Stafford Loans will have a 1% default fee and a 1% origination fee. If you have questions regarding a particular benefit, or if you wish to verify the current benefits with a particular lender, please contact that lender directly.

Notre Dame Federal Credit Union (Lender Code 830731)

  • No origination fees
  • 0.25% interest rate reduction at repayment when borrower makes automatic debit payments from her checking or savings account
  • Interest rate reduction of 2.00% upon making 48 on-time payments
  • To apply online or to download an application/MPN: Notre Dame Federal Credit Union
  • If you elect to complete the paper application, please complete the application and mail it to:
    • Notre Dame Federal Credit Union
    • P.O. Box 7878
    • Notre Dame, IN 46556-7878
  • Notre Dame Federal Credit Union Customer Service phone number: (800) 522-6611
  • In choosing Notre Dame Federal Credit Union to fund your educational needs, please be advised that membership in the credit union is required by the National Credit Union Administration (NCUA). The NCUA is the independent federal agency that charters and supervises federal credit unions, as well as regulates Notre Dame Federal Credit Union's funding of credit to members.

    Saint Mary's College students and their parents automatically qualify for membership at Notre Dame Federal Credit Union and are therefore eligible to borrow from Notre Dame Federal Credit Union.

Citibank (Lender Code 826878)

  • 1.0% origination fee for loans originated after July 1, 2008
  • 0.25% interest rate reduction at repayment when borrower makes automatic debit payments from his/her checking or savings account and agrees to receive electronic statements only
  • 0.50% interest rate reduction at repayment when borrower continues to make on-time payments
  • Ability to restore eligibility for the interest rate reduction by making 24 on-time payments (should the benefit be lost)
  • To apply online: Citibank
  • Citibank Customer Service phone number: (800) 967-2400

Wells Fargo (Lender Code 807176)

  • 1.0% origination fee for loans originated after July 1, 2008
  • 0.25% interest rate reduction at repayment when borrower makes automatic debit payments from her checking or savings account
  • To apply online: Wells Fargo
  • Wells Fargo Customer Service phone number: (800) 658-3567

Wachovia (Lender Code 830005)

  • 1.0% origination fee for loans originated after July 1, 2008
  • 0.25% interest rate reduction at repayment if borrower makes automatic debit payments from her checking or savings account
  • To apply online: Wachovia
  • Wachovia Customer Service phone number: (800) 338-2243

Chase (Lender Code 803000)

  • 1.0% origination fee for loans originated after July 1, 2008
  • 0.25% interest rate reduction at repayment
  • To apply online: Chase
  • Chase Customer Service phone number: (800) 487-4404


 

 

 

This page was updated on Thursday, October 2, 2008.