Stafford Loan Information

 



Q - I have never borrowed a Stafford loan at FPU before, how do I apply?
A - First time borrowers at FPU may follow these steps to apply for a Stafford student loan:
  1. Your Financial Aid Offer Letter from FPU will indicate the type(s) of loan(s) and amount(s) that you are eligible to borrow.
  2. If you are borrowing a Stafford loan or Graduate PLUS loan for the first time at FPU, you are also required to complete student loan entrance counseling.
    • - If you are a new undergraduate borrower, click here. You will be directed to a loan entrance counseling session where you will review information about student loans and take a student loan quiz. You will need to establish a user name and ID. At the end of the session you will be directed to step 3.
    • - If you are a graduate (post bachelor degree) new borrower, click here. You will be directed to a loan entrance counseling session where you will review information about student loans and take a student loan quiz. You will need to establish a user name and ID. At the end of the session you will be directed to step 3.
  3. Select a lender. We have provided a loan comparison tool so that you can compare lenders and make your own choice. You will be directed to the loan comparison tool as soon you have completed your loan entrance quiz. You may use any lender you choose, not only the lenders listed on the loan comparison tool.
  4. Once you have chosen the lender with whom you would like to borrow, you must fill out a Master Promissory Note (MPN). You will be directed to the lender's website from the loan comparison website by clicking on the "apply" button.  If you choose another lender not on our list, simply contact that lender for instructions.
  5. All new borrowers must complete both the Master Promissory Note AND student loan entrance counseling as well as submit all other forms requested by the Financial Aid Office before FPU will request your loan.
  6. Notification will be sent to FPU when you complete the MPN and loan entrance counseling. FPU will request your loan when all required financial aid forms have been submitted.

If you are a returning student who has already borrowed a loan at FPU, you only need to return the Offer of Financial Aid Letter and any other requested forms to the Student Financial Services Office.


Q - If I would like to make monthly payments towards my direct costs at FPU, what other options do I have besides the Stafford loan?
A - FPU provides several payment plan options for students who wish to make payments on the remaining balance of their direct costs. Once you have received your financial aid package you may set up a Financial Plan with the Student Financial Services Office. Although the student needs to set up the payment arrangement, parents may make payments on the student’s behalf.

Q - How do I know how much I am eligible to borrow in student loans?
A - When you receive your Financial Aid Offer Letter from FPU, the paragraph at the bottom will list your student loan eligibility. Yearly loan maximums are $2,625 for freshmen students, $3,500 for sophomore students, $5,500 for all other undergraduate students and $8,500 for graduate students, with aggregate maximums of $23,000 and $65,500 respectively. Additional unsubsidized loans are available to independent undergraduate and graduate students, as well as dependent undergraduate students whose parents are unable to qualify for a PLUS loan. Students may borrow up to $4,000 as a freshman or sophomore, $5,000 as a junior or senior and $10,000 as a graduate student with additional aggregate maximums of $23,000 and $73,500 respectively for undergraduate and graduate students. Your total financial aid, including student loans, may not exceed the cost of attendance.

Q - What is the difference between a subsidized loan and unsubsidized loan?
A - A subsidized student loan is need-based and does not begin to accrue interest until repayment. Unsubsidized loans are not need-based. The interest on an unsubsidized loan begins accruing when the student receives the loan. The interest rate on an unsubsidized loan while the student is in school is currently 6.80% for loans made after July 1, 2006.

Q - What is student loan entrance counseling and why am I required to complete it?
A - Student loan entrance counseling is a federal government requirement for all first time Stafford loan borrowers. The requirement must be met before you receive your first Stafford loan at FPU. Loan entrance counseling provides you with important information about your rights and obligations as a student loan borrower. If you would like more information about borrowing or repaying your student loan, please contact your financial aid counselor.

Q - Are there any fees associated with borrowing a Stafford loan?
A - Each lender determines whether or not they charge an origination fee on the loan before it is disbursed. If an origination fee is deducted, it is taken out of the loan disbursement before it is sent to FPU. The loan guarantor also charges a 1% default fee on every loan. Some lenders pay the default fee for the student. For example, if the lender charges a 3% origination fee (and there is no default fee) and you borrow a loan for $1000 your disbursement will be $970.

Q - How do I receive my student loan funds?
A - Once you have submitted all requested documents to FPU and have completed both the Master Promissory Note (MPN) and student loan entrance counseling, FPU will request your student loan. The entire process is electronic and is coordinated by the FPU Student Financial Services Office. The loan disbursements will be shceduled to arrive at the beginning of each semester for which you borrowed the loan. If the loan is requested after the semester begins, it will be scheduled to arrive at FPU as soon as possible.

Q - What if my student loans are not enough to cover my educational expenses?
A - If you would like to discuss additional sources for funding your education, please contact your financial aid counselor at 559-453-2041 or sfs@fresno.edu.

Q - When do I start repaying my student loan?
A - Stafford student loans have a one time six month grace period after you leave school (by graduating or withdrawing). As long as you are enrolled in school at least half time your student loans will remain in deferment status, meaning you do not have to make payments. In general, enrollment for a summer term is not needed to keep loans in deferment.

Q - Can I estimate how much my student loan payments will be?
A - Once you are out of school, the lender you chose will contact you to let you know what your monthly payment amount will be and when the payments will begin. In the meantime, you can use a loan repayment calculator to estimate what your monthly payments will be.

Q - What if I get more scholarships and end up borrowing more loan money than I need?
A - Each time a loan disbursement is sent to FPU, the Student Financial Services Office will verify student enrollment and eligibility and apply the loan to the student’s FPU account. All financial aid that goes on your student account will first be applied to any outstanding charges. If you have more financial aid than what is needed to cover your direct costs, a credit balance check will be issued. If you would prefer to have a portion or your entire loan returned, please contact your financial aid counselor at 559.453.2041 or sfs@fresno.edu.

Q - Who do I contact if I have questions about applying for the Stafford student loan?
A - You may contact your financial aid counselor at 559-453-2041 or sfs@fresno.edu if you have any questions about your student loans.