Messiah College students will receive their Federal Student Stafford Loans through the William D. Ford Federal Direct Loan program, the Department of Education.
How Do I Apply for a Federal Stafford Loan?
Federal Stafford Loan Information for all Incoming, New, Transfer and Continuing students:
- To obtain a Federal Direct Subsidized Stafford Loan or a Federal Direct Unsubsidized Stafford Loan: All students
who file a 2013-2014 FAFSA will be offered a Federal Direct Stafford Loan on their financial aid award notice,
which can be accepted or declined on MCSquare. All accepted loans will be created with the
Department of Education in mid-July. If you decline the Stafford Loan, and later in the semester decide you need Stafford Loans, please contact the Financial Aid Office.
- After the Stafford Loan is processed in mid-July, you should receive a Loan Disclosure Statement from the William D. Ford Federal Direct Loan Program detailing the terms and conditions of your Federal Stafford Loan.
- After the Stafford Loan is processed in mid-July, you MUST complete the following two requirements online at www.studentloans.gov.* Log in using your FAFSA PIN #. If you forgot your PIN #, you can request a duplicate
PIN # at www.pin.ed.gov.
1) After accepting your loan on your financial aid award notice, you need to
electronically sign a
Master Promissory Note (MPN).
2) You will also need to complete Loan Entrance Counseling.
- If you had a Federal Direct Stafford Loan with the William D. Ford Federal Direct Loan Program in the
past, you do not need to sign a new Master Promissory Note (MPN); an MPN is valid for 10 years. If you
have not had a William D. Ford Federal Direct Stafford Loan in the past, or you are unsure about having
a William D. Ford Federal Direct Stafford Loan in the past, then you need to complete the following two requirements at www.studentloans.gov.
- You can double check all your Federal student loans at www.nslds.ed.gov. Click on "Financial Aid Review".
Note: Federal Stafford Loan eligibility – Dependent sophomores are eligible for a total of $6500. Juniors are eligible for a total of
$7500, and Seniors are eligible for a total of $7500 per academic year. Loans are disbursed in two equal disbursements,
half for the fall semester and the other half for the spring semester. Beginning with the 2012-2013 academic year: There is a 1% fee on all Federal Stafford Loans, so
please consider this in your calculations for billing purposes.
Example: Sophomores will receive a total net disbursement
of $3217 per semester.
Messiah College is notified electronically when you complete your Stafford Loan Entrance Counseling and when you have signed your MPN, so you do not need to notify the Financial Aid office.
NEW - BEGINNING with the 2013-2014 academic year for ALL STUDENTS:
- The interest rate on ALL Direct Stafford loans first disbursed after July 1, 2013 is fixed at 3.86%..
- There will be a 1.051% fee on all Federal Stafford loans, so please consider this in your calculations for billing purposes.
Example: First-year students receive a total of $5500 Federal Stafford Loan in two equal
disbursements (half will disburse
for the fall and the other half will disburse for the spring
semester). $5500 x .98.949 =$ 5442. A total of $2721 net will disburse per semester.
- PUBLIC LAW 112-74 amended HEA section 428(a)(3)(A)(i)(I): For ALL NEW DIRECT STAFFORD LOANS with a first disbursement on or after July 1, 2012 AND before July 1, 2014, the interest subsidy on Direct Subsidized loans during the six month grace period is ELIMINATED for ALL students no longer enrolled on at least a half-time basis. This means that Direct Subsidized Stafford loans will accrue interest during the grace period (just like Unsubsidized Stafford loans). If interest is unpaid, it will be capitalized. THIS AFFECTS ALL GRADUATING STUDENTS AND THOSE WHO ARE LESS THAN HALF-TIME ENROLLMENT.
What are the Terms and Conditions of a Federal Stafford Loan?
1. Federal Subsidized Stafford Loans (no interest accrues while in school, but WILL accrue
during the grace period for loans from July 1, 2012 through June 30, 2014):
a. 2012-2013 there is a 3.4% fixed interest rate.
b. 2013-2014 there is a 3.86% fixed interest rate.
2. Federal Unsubsidized Stafford Loans (interest accrues while in school & during grace):
a. 2012-2013 there is a 3.86% fixed interest rate.
b. 2013-2014 there is a 3.86% fixed interest rate.
3. Origination Fees on Federal Stafford Loans that come off the disbursed amount:
a. 2012-2013 there is a 1% Origination Fee.
b. 2013-2014 there is a 1.051% Origination Fee
4. 0.25% interest rate reduction for borrowers who elect automatic debit of monthly payments.
5. There is a six-month grace period.
After the Federal Stafford loan has been created, a Disclosure Statement from the William D. Ford Federal Direct Loan Program will be mailed to the student at the address you provided on the FAFSA. This Statement details all the terms and conditions of the Federal Stafford Loan.
For more information regarding Federal Direct Stafford loans, please click here.
If you have any questions please feel free to contact the Financial Aid Office at 1-717- 691-6007, Monday through Friday, 8:30 a.m. to 4:30 p.m.