Federal Stafford Loans

Federal Stafford Loans are federally guaranteed, low interest rate loans that are available to eligible students as determined by the FAFSA. Because the loans are guaranteed, application for the loan is not based on credit history or income.

Loan repayment begins after you graduate or drop below half-time status. Your loan servicer offers several repayment options.

The Federal Stafford Subsidized Loan

• Based on need, as determined by the information provided on the FAFSA.
• Interest is not charged while you are in school , during the grace period and during authorized periods of deferment.
• You must be enrolled at least half time (6 hours) to qualify.
• Repayment begins six months after you drop below six hours of enrollment.  The six months is known as your grace period.
• Fixed interest rate.
• Requires entrance counseling prior to the first disbursement of funds to the student’s account.

The Federal Stafford Unsubsidized Loan

• Not based on need.
• Interest begins accumulating at time of disbursement .
• Fixed interest rate.
• Students can pay interest while in school. If you defer payments, the interest will be capitalized. 
• Repayment begins six months after you are no longer enrolled at least half time.  The six months is known as your grace period.
• Requires entrance counseling prior to the first disbursement of funds to the student’s account.

Federal Stafford Loan Process  

The University of Toledo participates in both the Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP).  For 2008-09 our graduate and professional students will have the choice of programs for the Federal Stafford (subsidized and unsubsidized) and the Federal Grad PLUS loans.  The links below contain information about both programs and the steps to apply for each program.  A student may borrow from only one of the two programs during the same academic year. 

Federal Direct and FFEL Program Comparison Chart

Option 1: Direct Loan Process

The loan program listed on your initial Financial Aid Award Notification is the Federal Direct Loan Program. To process your Federal Stafford Loan through the Direct Loan Program:

1. Accept, decline and/or reduce your Federal Direct Stafford Loan online through Self-Service at: http://myut.utoledo.edu/
    
2. Follow the links below to complete your Direct Loan Master Promissory Note (MPN) (if you have not completed one at The University of Toledo in the past 10 years) and your entrance counseling if needed.

   Promissory Note
   Entrance Counseling

3. Enroll and attend classes for at least 6 credit hours at the graduate level in a degree-seeking program (cannot be provisional or special student status).

Option 2: FFELP Loan Process

The link below contains information regarding borrower benefits and links to complete an on-line MPN. The list does not include all lenders and you are encouraged to shop and compare the Federal Stafford Loan program for qualified lenders and their benefits. The University of Toledo does not have a preferred lender list, but does provide a list of lenders used by students in the past.

The FFELP Lender Information Website

To process your Federal Stafford Loan through the FFEL program:

1. Accept your Stafford loan by completing and returning the 2008-09 Graduate/Professional Federal Stafford Loan form to the OSFA.
    
2. Complete the electronic or paper master promissory note (MPN) with your lender. You may check for an electronic note and entrance counseling at:

   Promissory Note Links
   Entrance counseling

3. Enroll and attend classes for at least 6 credit hours at the graduate level in a degree-seeking program (cannot be provisional or special student status).

Loan Limits

Professional degree students may be eligible to borrow up to $20,500 per academic year. Only $8,500 of this amount may be subsidized. Loan amounts may be reduced if you receive other assistance i.e. scholarships, tuition, waivers.

The total Federal Stafford Loan limit for professional degree students is $138,500 (only $65,500 of this amount may be subsidized). The total loan limit includes Federal Stafford Loans borrowed as an undergraduate and/or graduate student.

Exit Interview

If you graduate or drop below half-time, you must complete a Federal Stafford Loan Exit Interview.