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• Scholarships & Financial Aid

Office of Scholarships & Financial Aid

Wickes 141 (989) 964-4103financial-aid@svsu.edu

Federal School Code : 002314

Loans

Educational loans are available to assist students with any unmet educational costs they may have. Loans do need to be repaid, and should be considered carefully. Students should always file a FAFSA first in order to be packaged with any federal loan eligibility. When that eligibility is exhausted, parent and alternative loans are the next consideration.

• Federal Direct Stafford and PLUS Loans
• Alternative (Private) Loans
• Obtaining Financial Aid for the Spring/Summer Semester
• Top 10 Questions About Federal Stafford Loans
• Teacher Loan Forgiveness Program - FFEL and Direct Loan Programs

Federal Direct Loans

SVSU participates in the William D. Ford Direct Loan Program, which means that our students have only one lender when it comes to Federal Stafford Loans -- the U.S. Department of Education. The following federal loans are available to qualified students. These loans require submission of the Free Application for Federal Student Aid (FAFSA), http://www.fafsa.ed.gov/. A student's federal loan eligibility is conveyed in the Financial Aid Award Letter.

• Federal Direct Subsidized Stafford Loans
• Federal Direct Unsubsidized Stafford Loans
• Federal Direct Parent PLUS Loan for Undergraduate Students

Entrance Loan Counseling

If you are a first time student borrower at SVSU, you will have to complete Entrance Loan Counseling before federal loan funds can be credited to your account or sent to you. You may complete this requirement on line at https://www.dlssonline.com/entrancecounseling/main-entc.asp. Be sure that you indicate Saginaw Valley State University as the school that you want to be notified about your results.

Electronic Master Promissory Note

As a first time borrower you must complete a Direct Loan Electronic Master Promissory Note (MPN). The electronic MPN site allows you to complete and sign a MPN over the web as an alternative to using a paper MPN. Please do not go to the site to complete the process until we have sent you correspondence to do so.

You must have a Department of Education PIN in order to complete the electronic MPN. If you have forgotten your PIN or do not have one, go to www.pin.ed.gov to have your PIN sent to you.

To complete your electronic MPN, you will need to provide the following information: your social security number, your permanent address and telephone number, your driver's license number and state, and names, addresses, and phone numbers for two references.

Go to http://dlenote.ed.govto complete the electronic MPN. Allow enough time to complete the MPN process in a single session. You cannot save your work and return to it at a later time. Once you are at the website, be sure to review the "What You Need" and "What to Expect" sections of the website. Then select "Complete New MPN for Student Loans."

Exit Loan Counseling

When you graduate or leave school, you must complete Exit Loan Counseling, where the emphasis is on being informed about your repayment obligations and selecting a repayment plan.

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Federal Direct Subsidized Stafford Loans

Current in-school interest rate: 0% for the student
Minimum Enrollment Status: Half-time (6 undergraduate credits/5 graduate credits)
Satisfactory Academic Progress Required? Yes
U.S. Citizenship Required? Yes

This loan program requires a minimum of half-time enrollment (6 credits) per semester and demonstrated financial need. The interest rate is variable (adjusted every year on July 1) and has a current maximum of 8.25%. With a subsidized loan, the interest is paid by the government while a student is in school and during periods of grace and deferment.

Annual Federal Stafford Loan Limits

Loan amounts are pro-rated for students whose program of study is less than a full academic year. For financial aid purposes, the scheduled academic year starts with the Fall Semester and ends with the Spring/Summer Semester. Beginning July 1, 2007, 2.5% fee will be deducted from the loan with a 1.5% rebate, which means the overall deduction is 1% (this was 1.5% prior to July 1). Repayment on this loan begins 6 months after a student graduates, leaves school, or drops below half-time enrollment.

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Federal Direct Unsubsidized Stafford Loans

Current In-School Fixed Interest Rate: 6.8%
Variable In-School interest rate (for federal loans disbursed before 07/01/06): 6.54%
Interest Rate Change: Fixed for New Loans (per current federal legislation)
Minimum Enrollment Status: Half-time (6 undergraduate credits/5 graduate credits)
Satisfactory Academic Progress Required? Yes
U.S. Citizenship Required? Yes

This loan program requires a minimum of half-time enrollment (6 credits) per semester and is available regardless of financial need. The interest rate is variable (adjusted every year on July 1) and has a current maximum of 8.25%. With an unsubsidized loan, interest is charged to the student from the day the loan is disbursed. The student may choose to pay the interest as it accumulates or have it capitalized (added to the loan principal when repayment begins). Undergraduate annual loan limits for dependent students are the same as for the Federal Direct Subsidized Stafford Loans.

Annual Federal Stafford Loan Limits

Loan amounts are pro-rated for students whose program of student is less than a full academic year. For financial aid purposes, the scheduled academic year starts with the Fall Semester and ends with the Spring/Summer Semester. Beginning July 1, 2007, 2.5% fee will be deducted from the loan with a 1.5% rebate, which means the overall deduction is 1% (this was 1.5% prior to July 1). Repayment on this loan begins 6 months after a student graduates, leaves school, or drops below half-time enrollment.

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Federal Direct Parent PLUS Loan for Undergraduate Students

Current Fixed Interest Rate: 7.9%
Variable In-School interest rate (for federal loans disbursed before 07/01/06): 7.94%
Interest Rate Change: Fixed for New Loans (per current federal legislation)
Minimum Enrollment Status: Half-time (6 undergraduate credits/5 graduate credits)
Satisfactory Academic Progress Required? Yes
U.S. Citizenship Required? Yes

This loan program requires a minimum of half-time enrollment (6 credits) per semester and is for parents who want to borrow for their dependent students. Eligibility is not based on financial need but is based on credit history. The interest rate is currently fixed at 7.9% and has a current maximum of 9%. Parents are responsible for the interest and are limited to borrowing up to a student’s cost of attendance minus any other financial aid. A 2.5% fee will be deducted from the loan. Repayment begins within 60 days after the final loan disbursement.

Parents interested in applying for the Federal Direct Parent PLUS Loan should contact the Office of Scholarships and Financial Aid and fill out a Federal Direct Parent (PLUS) Loan Request Form.

A denial of a Federal Direct Parent PLUS Loan, based on adverse credit history, allows a dependent student to borrow under the independent Federal Direct Stafford Loan Limits. A student of a denied parent should complete a Student Loan Request Form to obtain the additional unsubsidized loan eligibility.

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Obtaining Financial Aid for the Spring/Summer Semester

If a student has already received federal financial aid for the Fall and/or Winter semester, Spring/Summer aid is usually limited to leftover Pell Grant or loan eligibility, if applicable. Students who wish to apply for their remaining financial aid eligibility need to submit the Spring/Summer Session Federal Pell Grant and/or Federal Direct Loan Request Form to the Office of Scholarships and Financial Aid by the dates indicated.

All other students must submit a Free Application for Federal Student Aid (http://www.fafsa.ed.gov/).

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Top 10 Questions About Federal Stafford Loans:

1. Disbursements: Most Stafford loans are sent in two disbursements. Typically one for the Fall semester and one for the Winter semester.  One semester only loans are now sent in one disbursement at the beginning of the semester.  Loan funds are disbursed no earlier than 10 days before the beginning of the semester or when the funds arrive, whichever is the latter.
2. Interest Rate: Subsidized Stafford Loans are interest-free while the student is in school and through the 6-month grace period.  Unsubsidized Stafford Loans currently have an fixed interest rate of 6.8% beginning 7/1/06.  Interest starts as soon as the first disbursement happens.  Students receive quarterly interest statements from Direct Loans.  Students do not have to pay this balance, but are encouraged to do so.  If the interest is not paid, it is capitalized with the principal upon repayment.  What does that mean? The student would pay interest on the interest.
3. Processing Fee:Beginning 07/01/07, there is a 1% processing fee assessed to all Stafford Loans by the federal government (this amount was formerly 1.5%).  This means the funds SVSU receives for the student loan are 1% less than what the loan was taken out for.  A $1750 loan will have $1732 disbursed.
4. Grace Period: Students have one 6-month grace period for every loan.  If a student leaves school and returns, they can have their loans deferred again.  However, a student only gets one grace period.  Students should contact Direct Loans or go to http://www.dl.ed.gov/ for more specific information. (See "Repayment" below.)
5. Enrollment Status: Students must be at least half-time to be eligible for a Federal Stafford Loan.  This is a minimum of 6 credits for undergraduates and 5 credits for graduates.  If a student drops below half time before the funds are fully disbursed, the loan will be removed or reduced depending on the situation.  There are no exceptions to this rule.
6. Repayment: The interest rate in repayment is capped at 8.25%.  Typically, if students consolidate their Federal Stafford Loans, Direct Loans will take the average of all their interest rates and figure one monthly loan payment based on that calculation.  Therefore, because the in-school interest rate is lower, it is more beneficial to consolidate while in school or in the grace period.  WARNING: Consolidating loans before the grace period or during the grace period can force a student to have a shorter grace period or lose the grace period all together.  Students should contact Direct Loans or go to http://www.svsu.edu/typo/# for more specific information (on this site students can estimate their repayment amounts for all of their Direct Loans).  Students can also log onto http://www.nslds.ed.gov/ for their aggregate loan amount.  What does that mean?  The student can see all the Federal Student Loans they have taken out - aggregate is the total amount borrowed.
7. Loan Counseling: Students must complete entrance loan counseling before a loan is disbursed.  This is available at http://www.dl.ed.gov/. Students typically need to complete this only one time at a school, but some situations may cause this to be required again if there has been a lapse in attendance.
8. Promissory Note:Students must complete a promissory note before a loan is fully processed.  SVSU sends the promissory note to the student.  The student must read, complete, and sign the promissory note and return it to SVSU. Students typically need to complete this only one time at a school, but some situations may cause this to be required again if there has been a lapse in attendance.
9. First-Time Borrowers: First-time borrowers must have a first-disbursement date 30 days after the semester begins.  No excess loan funds can be disbursed until this time.
10. Loan Limits: Federal Stafford Loans are regulated by yearly and aggregate (total) loan limits.  These are as follows:

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Alternative Loans

If your SVSU Cost of Attendance is not met with scholarships, grants, federal loans or other aid, you may want to consider an alternative loan (also known as a private educational loan). Each loan may have different interest rates, repayment plans, and eligibility requirements. You should explore the options to find the loan that works best for you. These alternative loans do have certain credit, debt to income ratio, and/or employment requirements. A co-signer may be necessary.

Students should always consider Federal Stafford Loan options first.

Some important items to consider when deciding which loan works best for you:

1. Repayment Options
2. Interest Rates (Fixed v. Variable)
3. Other Eligibility Requirements (i.e. academic progress, minimum enrollment, etc.)

Listed below are some sources of alternative loans. This information is not a comprehensive listing of educational loans, nor does it constitute any endorsement by the University for any lender. It is designed simply to help you learn about many of the loan options and assist you to begin that process of securing an appropriate loan. We also encourage you to seek other alternative loan options, including your local or family financial institution or even the yellow pages of your telephone book.

For up to date information on each individual lender, please visit the lender site. This information is reviewed throughout the year, but is subject to change at any time. View the lender websites for specific information about future options for release cosigner and for interest rate reduction opportunities for timely payments or auto-deduction of payments from your banking institution.

• Campus Door
• CitiAssist Loans
• Key Loan
• MI-LOAN (Michigan Alternative Loan Program)
• Sallie Mae Signature Student Loans
• TERI Loans 
• The Education Finance Partners Private Loan
• Other Alternative Lenders 

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Campus Door Loans