Federal Stafford Loans

Federal Stafford Loans

• A low-interest federal education loan.
• Student must file a FAFSA in order to determine financial aid eligibility.
• Undergraduate federal stafford loan borrowing limits for 2009-2010 are currently $5,500 per year for freshmen, $6,500 per year for sophomores, and $7,500 per year for other undergraduates up to a total of $31,000 as an undergraduate student.
• Graduate federal stafford subsidized loan borrowing limits for 2009-2010 are currently $8,500 and the unsubsidized annual limit is $12,500.  The aggregate loan limit for a graduate student cannot exceed $138,500 (between undergraduate and graduate stafford).
• The interest rate is currently fixed at 5.6% for subsidized and 6.8% for unsubsidized.
• Student must be enrolled at least half-time.
• Repayment begins six months after the student graduates or leaves school.
• Stafford Loan Request Form must be filed annually; form is available online.
• Requires entrance counseling for first-time borrowers.
• Requires exit counseling if a student graduates, leaves, or drops below half-time (6 credits) at Mount Union.

The Federal Stafford Loan application process allow students the opportunity to electronically sign their loan application. Please complete the following steps when applying for a Federal Stafford Loan:

• Complete the Federal Stafford Loan Request form and return it to the Office of Student Financial Services. Once the form has been received and processed by the Office of Student Financial Services, you will receive an e-mail prompting you to complete the on-line Master Promissory Note (MPN).
• Read the borrower benefits and select a lender here.
• Complete Federal Stafford Entrance Counseling  here.
• Complete the on-line Master Promissory Note (MPN) here for the Federal Stafford Loan.

Preferred Lender List

Follow this link to a list of Mount Union College's frequently used lenders. Please keep in mind that the interest rate for each lender will be the same. The difference involves what incentive repayment plans each lender has to offer. Examples would include a specific percent reduction of the interest rate on the loan immediately with the first payment, or after 36 or 48 on-time payments. Each of the programs are beneficial to the student.