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Federal Loan Request Form
There are two key federal student loans available to undergraduate students who are U.S. or dual U.S. citizens, or permanent residents: the Federal Stafford Loan and the Federal Perkins Loan. The application for both loans is the Free Application for Federal Student Aid or FAFSA. We encourage families comfortable with online processing to complete the FAFSA online. If you prefer to complete a paper FAFSA, call 1-800-433-3243 to request a paper form.
If a student's FAFSA is selected for federal verification, the process must be completed before federal loans can be disbursed to the student account. We will notify students via their Colby e-mail account regarding what information will be required in order to meet this requirement. Students who are selected and appear to be eligible for a Subsidized Stafford Loan and/or Perkins Loan, cannot choose an Unsubsidized Stafford Loan in order to avoid the verification process. For frequently asked questions about verification, please click here.
Federal Stafford Loans
Beginning July 1, 2010, the U.S. Department of Education became the only lender of Stafford Loans through the William D. Ford Federal Direct Loan Program (FDLP). More information on Federal Direct Loans, including budget and estimated payment calculators, can be found at www.direct.ed.gov.
Interest Rates for Undergraduates Borrowing Loans Disbursed during the 2013-2014 academic year :
According to federal regulations, Colby cannot disburse aid funds until within 10 days of Colby's first day of classes each semester. The College Cost Reduction and Access Act of 2007 cut fixed interest rates on subsidized Stafford loans for undergraduate students to 6.0% (2008-2009), 5.6% (2009-2010), 4.5% (2010-2011), and 3.4% (2011-2012). They were expected to increase to 6.8% in 2012-2013, but legislation was passed to keep them at 3.4% for that academic year.
*Interest rates on subsidized loans are expected to increase to 6.8% for the 2013-2014 academic year.
Loans disbursed after July 1, 2013 will have a 1.051% origination fee deducted from the amount borrowed.
Maximum Annual Stafford Loan Limits (for dependent students):
This table shows annual maximum loan amounts for dependent students. Some individuals won't be eligible to borrow the full amounts based on information provided on their FAFSA and Colby aid application. In cases where a parent is denied a Federal PLUS Loan or the student is considered independent according to the federal regulations, a student may have more eligibility. Students will be notified of their eligibility on their Statement of Financial Aid (award letter).
We will process loans for the amount requested, up to the student's borrowing eligibility, unless they are below a minimum limit set by the federal processor.
Subsidized Stafford Loans do not accrue interest while the student is enrolled at least half-time. Eligibility is based upon need as determined by the federal formula. Repayment begins six months after the student is no longer enrolled. Subsidized Stafford Loans disbursed after July 1, 2012 will no longer be eligible for an interest subsidy during the six-month grace period.
Unsubsidized Stafford Loans are not based upon need, and interest does accrue while the student is enrolled; however, interest can be capitalized (not paid but added to the loan amount) while the student is enrolled at least half time. Repayment begins six months after the student is no longer enrolled.
The maximum undergraduate aggregate Stafford Loan limit is $31,000 (maximum $23,000 subsidized).
Upon receipt of the completed Federal Loan Request Form, loans borrowed from the Federal Direct Loan Program (FDLP) will be reflected as "tentative" on the student account and will be considered before the assessment of late fees. If borrowing from the FDLP for the first time, we will contact you with instructions on how to complete entrance counseling and a Master Promissory Note (MPN) electronically.
Borrowers can view their Federal Student Loan and Lender information on the National Student Loan Data System (NSLDS) at www.nslds.ed.gov.
If seeking to consolidate your federal education loans, please click here for information regarding the Federal Direct Loan Consolidation Program.
Federal Perkins Loan
Federal Perkins Loans are need-based loans, awarded to students with eligibility as determined by the Department of Education, and when funds are available to lend. At this time, only a limited number of students have been awarded a Perkins Loan due to the lack of available funding.
The Opportunity Maine program is designed to provide a Maine state tax credit to help cover the payment of student loans for eligible Maine students who work and pay taxes in the state after they finish school. Beginning with any loans that a student borrows in January 2008, graduates may be eligible for an Educational Opportunity Tax Credit to help pay student loans. For more information about this program, click here.
04/22/2013 11:44:54 AM