Federal Stafford Student Loan Program

Current Interest Rates (history)

                           *Rates in effect July 1, 2007-June 30, 2008

Loan Types and Eligibility

There are two types of Federal Stafford Student Loans, Subsidized and Unsubsidized.

To be eligible for a loan you must:

• Be a United States citizen, a national permanent resident or an eligible non-citizen
• Be enrolled at least half time (1.5 units) in an eligible program
• Be making Satisfactory Academic Progress
• Not be in default on a Stafford, PLUS, SLS or Consolidation Loan
• Not owe a refund on any Title IV funding
• Not have been convicted of any offense under state or federal law involving the sale or possession of a controlled substance
• File a Free Application for Federal Student Aid (FAFSA)

Subsidized Federal Stafford Student Loan

A Subsidized Stafford Loan is awarded based on the student financial need as computed by the Federal Processor.  The Federal Government pays the interest on the subsidized loan while the student is enrolled on a half-time or greater basis and during a six month grace period once the student ceases enrollment.  This grace period begins on the date the student either drops below the half-time status requirement in their course load, withdraws or graduates from Albion College. 

If a student is not enrolled for a period of six months or longer, the student will go into repayment.  At that time interest will begin to accrue at a fixed interest rate not to exceed 8.25%.  There may be an origination fee levied by some lending agencies which is subtracted from the loan at the time of disbursement.   

Unsubsidized Federal Stafford Student Loan

An Unsubsidized Stafford Loan is not awarded on the basis of need.  If a student is not eligible for a fully Subsidized Stafford Loan, the student may be awarded BOTH a Subsidized and an Unsubsidized Stafford Loan, not to exceed the loan maximum.

The Federal Government DOES NOT pay the interest on the unsubsidized loan while the student is enrolled on a half-time or greater basis nor during the six month grace period.  Interest accrues on the loan at a fixed rate not to exceed 8.25% while the student is enrolled and during the six month grace period.  Interest is not capitalized on this loan until the date the student enters repayment.  A student may choose to make the interest payments while they are in school or they may defer them until repayment.  There may be an origination fee levied by some lending agencies which is subtracted from the loan at the time of disbursement.

Annual Loan Limits

                *loan fees not deducted

The maximum repayment terms for the Federal Stafford Loan program is 10 years.  Minimum payment due is based upon the cumulative amounts borrowed during the student's academic career.  

Your loan funds will be sent to Albion in two or more payments and released to you after your enrollment and academic progress have been verified.

Application Process

Once a student's financial aid award package has been completed, an information packet will be sent to the student's home with the award notice that includes a Federal Loan Guide and a green  Student Loan Acceptance Form.  Borrowers must complete this form in full and return it to the Financial Aid Office for processing.    

For all first time borrowers, a Master Promissory Note (MPN) must be completed and returned to the designated lending institution before any funds will be released to Albion College.  All students will be provided with the option to electronically sign their MPN using their Department of Ed FAFSA PIN.   A pre-printed MPN can be mailed to your home address if would prefer not to e-sign your application. 

All first-time borrower's under the Federal Stafford Loan program are required to complete a loan counseling session prior to loan processing.  This requirement can be completed from any computer with internet access at mapping-your-future.org or by clicking on the icon below.  If you do not have a home computer with internet access, you can use any of the computers in Albion's public computing labs.  Please be sure to retain a copy of the confirmation number you receive at the end of the session and keep it with your financial records.   Albion's Financial Aid Office receives an electronic copy of this confirmation so there is no need to forward this information to us.  If you cannot complete this requirement via the internet, please contact our office to make other arrangements.  Stafford loan funds will not be credited to the student's account until this session is completed.

If a student would like to make payments on their loans, either in principle or interest, they MUST contact the holder of their loan to arrange for the payments.  Lending agencies will send a quarterly interest payment notice to borrowers for the Unsubsidized Stafford loan.  If no payment is made, the lending agency automatically accrues the interest payments on the borrowers account until the borrower reaches repayment. 

Cancellation Policy

A student has the right to cancel any portion or the entire amount of a federal loan that is applied to their student account if the funds are not needed.  The student should contact the Financial Aid Office within 60 days of the date of disbursement and provide a written request on the amount and type of loan that they wish to cancel.  Cancellation requests should be submitted no later than two weeks before the end of the current semester.

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Contact Us
Albion College Financial Aid Office -- 611 E. Porter St., Albion, MI 49224
517.629.0440                               Toll Free 800.858.6770