Messiah University students will receive their Federal Student Stafford Loans through the William D. Ford Federal Direct Loan program, administered by 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 2022-2023 FAFSA will be offered a Federal Direct Stafford Loan on their financial aid award notice, which can be accepted or declined on the student's Self-Service menu (prospective students can also use myMU). 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: Loan Entrance Counseling (LEC) and Master Promissory Note (MPN) requirements online at www.studentaid.gov. The student will log in using their FSA ID.
ONLY the student must complete the LEC and MPN requirements and will need to go to www.studentaid.gov.
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, please be sure to complete the Loan Entrance Counseling (LEC) and Master Promissory Note (MPN) at www.studentaid.gov.
Federal Stafford Loan eligibility is as follows:
Dependent first-year students are eligible for $5,500; dependent sophomores are eligible for $6,500; and dependent juniors and/or dependent seniors are eligible for $7,500.
When a Federal Stafford Loan disburses for payment to a student's account, the government origination fee will be subtracted from the initial loan amount. Therefore, the disbursement amount will be slightly lower on the student's account statement.
What are the Terms and Conditions of a Federal Stafford Loan for the academic year 2022/2023?
- Federal Subsidized Stafford Loans (no interest accrues while in school but WILL accrue during the 6-month grace period.) For the academic year of 2022-2023, there is a fixed interest rate of 4.99% for undergraduates.
- Federal Unsubsidized Stafford Loans (interest accrues while in school AND during the 6-month grace period.) For the academic year of 2022-2023, there is a fixed interest rate of 4.99% for undergraduates.
- The government origination fees taken off the disbursed amounts of the Federal Stafford loans for the 2022-2023 academic year are as follows:
on or after 10/1/20 and before 10/1/23 the government origination fee is @ 1.057%
on or after 10/1/19 and before 10/1/20 the government origination fee is @ 1.059%
- There is an interest rate of 0.25% reduction for borrowers who elect automatic debit of monthly payments.
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 provided on the FAFSA. This statement details all the terms and conditions of the Federal Stafford Loan.
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 GRADUATED STUDENTS AND THOSE WHO ARE LESS THAN HALF-TIME ENROLLMENT.
If you have any questions, please feel free to contact the Financial Aid Office at 717-691-6007, Monday through Friday, 8:30 a.m. to 4:30 p.m.