A Federal Stafford Loan can either be subsidized or unsubsidized.  If the loan is subsidized, the government will pay the interest on the loan while the student is enrolled in school at least half time.  If the loan is unsubsidized, the student has the option to make quarterly interest payments or can allow the interest to accrue and it will be capitalized (added to the principle) once the loan enters repayment.

In order to obtain either type of Stafford Loan, a completed FAFSA (Free Application for Federal Student Aid) must be on file in the Financial Aid Office.

A subsidized Stafford Loan is awarded by the Financial Aid Office based on financial need which is determined by the FAFSA.  An unsubsidized Stafford Loan is not need-based and can be obtained by a written request to the Financial Aid Office. This request may be submitted via email to financial-aid@trincoll.edu

The loan fees and interest rate for a Stafford Loan are set by the federal government. For the 2008-2009 academic year, the loan has an origination (processing) fee of 1%, a default (insurance) fee of 1%, and a fixed interest rate of 6.8%. Lenders may offer borrower benefits that reduce the fees and/or the interest rate.

Trinity College students have the right and ability to select the lender of their choice in the Federal Family Education Loan Program for their Stafford Loan without penalty. The College’s financial aid professionals have identified for your convenience some carefully selected lenders who offer competitive borrower benefits including reduced fees and interest rate reductions. For detailed criteria used in the lender selection process click here.

Using a lender other than the lender on the drop down menu of Sallie Mae Open Net requires proof of a signed Master Promissory Note (MPN) and a school certification to be submitted by the billing due date.

The College does not participate in any revenue sharing with these lenders or the servicer.

STAFFORD LOAN APPLICATION PROCESS

Step 1 – Complete your financial aid documents. A FAFSA can be completed online at www.fafsa.ed.gov. Trinity College’s federal school code is 001414. The Financial Aid Office will contact you if additional documents are needed.

Step 2 – Wait for your financial aid award.  Please make sure that all of your financial aid documents have been received by the Financial Aid Office.  If they have not, your award cannot be completed. You can check the status of your award and documents on the Financial Aid Office’s Trinity webpage by using your Trinity ID number and the last four digits of your Social Security number.

Step 3 – Decide if you wish to borrow a Stafford Loan.  If a Stafford Loan is part of your financial aid award and you do not want the loan, you must submit a Declined Aid Form to the Financial Aid Office indicating you decline the loan.  Otherwise, the loan will be accepted and remain as part of your award.

Step 4 – Complete your federally-required loan documents.  Sallie Mae, on behalf of the lender, will contact you with instructions on how to complete the federally required Stafford Loan/FFELP Master Promissory Note (MPN). First time borrowers must also complete the federally required Entrance Loan Counseling which explains your borrower rights and responsibilities.

Step 5 – Stafford Loan Disbursement.  Sallie Mae will electronically disburse the funds of your Stafford Loan to Trinity College and these funds will be applied directly to your student account.

Please note: If you choose a lender that does not use Sallie Mae as its servicer, then the process will not be entirely electronic and therefore may take more time. Your loan servicer must send to Trinity College a written notification that your Stafford Loan is approved with a Master Promissory Note on file, and the School Certification form.  First time borrowers must also complete the federally required Entrance Loan Counseling which explains your borrower rights and responsibilities.  These documents must be received at Trinity College by the due date of the bill (8/15/08 for fall and 12/12/08 for spring) in order to avoid late fees. A notice of application is not sufficient documentation.