Eligibility

The Federal Stafford Loan is a low-interest loan designed to help meet the costs of postsecondary education.  Students who are U.S. citizens or permanent residents and have filed a Free Application for Federal Student Aid (FAFSA) are eligible, including those who do not qualify for need-based aid.  Students who do not qualify for need-based aid are ineligible for the interest subsidy from the federal government. Borrowers of unsubsidized Stafford Loans can either pay the interest quarterly or choose to have the interest accrue while they are enrolled in college.  

Stafford Loan Limits

The maximum annual amount that a student may borrow for undergraduate education (subsidized + unsubsidized) is based on the student’s grade level; limits are as follows:

Student Grade Level	Subsidized Stafford	Additional Unsubsidized Stafford
1st year	$3,500	$2,000
2nd year	$4,500	$2,000
3rd year	$5,500	$2,000
4th year	$5,500	$2,000

Interest Rate/Loan Fees

The interest rate for subsidized Stafford Loans is fixed at 5.6 percent for loans disbursed between July 1, 2009, and June 30, 2010.  If a student qualifies for the in-school subsidy, the federal government pays the interest on the loan while the student is enrolled.  The interest rate on unsubsidized Stafford Loans is 6.8 percent, with the borrower responsible for paying any accrued interest.  An origination fee of 1.5 percent of the principal loan amount is deducted by the lender prior to disbursement. 

Stafford Application Process

Students typically apply for Stafford Loans during the summer.  To apply for a Stafford Loan, you must complete the following steps:

• File a FAFSA so that eligibility for any subsidized loan amount can be established.
• Provide copies of student and parent 2008 federal tax returns and W-2 forms to Student Financial Services.
• Complete a Federal Stafford Loan Authorization through the Garnet Gateway, by clicking on Financial Aid Online Forms under the Student Financial Services tab and choosing the Stafford Loan option.
• First-time borrowers must sign an online Master Promissory Note (MPN) with the lender they choose.
• Receive loan entrance counseling (offered during New Student Orientation).

Instructions for Completing a Federal Stafford Master Promissory Note (MPN)

If you are applying for a Federal Stafford Loan for the first time, you MUST complete a Master Promissory Note (MPN) online with your chosen lender.  A list of Bates suggested lenders is shown below.  Students at Bates are under no obligation to borrow from one of the lenders suggested by the College, and we do not assign lenders.  Bates will certify Stafford loans with any lender offering loans to students attending Bates.

Bates Suggested Lenders (Stafford)

Nelnet

lender code: 831300

phone: 877-804-3603

URL: https://secure.nelnet.com/LoanApplication/

 

Citizen's Bank

lender code: 826861

phone: 800-708-6684

URL:  https://secure.nelnet.com/LoanApplication/cobrandlanding.aspx?LID=826861&APP=Stafford

 

FAME (Finance Authority of Maine)

lender code: 834105

phone: 800-228-3734

URL: https://loans.edfinancial.com/Loans/GenericBrand/L834105/Stafford/Default.aspx

Stafford Loan Repayment

Repayment of Stafford Loans begins six months after the students after the students graduates or otherwise ceases enrollment.  The standard repayment term is 10 years.  Alternate repayment terms such as extended repayment, graduated repayment, and income-contingent repayment are also available.  The FinAid web site offers a Loan Payment Calculator that students and parents may find helpful.