2011-12

Federal Direct Stafford Loans are available to students enrolled at least half-time.  The federal government offers loans with an interest subsidy (subsidized), and without a subsidy (unsubsidized).  If you're eligible for a Federal Direct Subsidized Stafford Loan, the government will pay the interest on the loan until six months after you graduate, withdraw from college, or enroll less than half-time, at which time repayment of principal and interest will begin.  If eligible for an Federal Direct Unsubsidized Stafford Loan, you will remain responsible for the interest charge upon receipt of the loan, but may defer payment of that interest until you leave school. Interest that has accrued on the Federal Direct Unsubsidized Stafford Loan will be capitalized upon repayment.  The interest rate on subsidized loans first disbursed to undergraduate students between July 1, 2011 and June 30, 2012 will be fixed at 3.4%.  The interest rate on an Federal Direct Unsubsidized Stafford Loan will be 6.8%. For students enrolled in the Graduate Program, the interest rate is 6.8% for both Federal Direct Subsidized and Unsubsidized Stafford Loans.

Borrowers are normally allowed 10 years to repay the loan, making the investment affordable for most students.

FEDERAL DIRECT LOAN PROGRAM

Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education.  Eligible students borrow directly from the U.S Department of Education.

RETURNERS

Buena Vista Students that have borrowed through the Federal Direct Stafford Loan Program previously and signed a Master Promissory Note (MPN) with Direct Loan will not be required to sign a new MPN.  If you did not borrow the Federal Direct Stafford Loan previously and now wish to borrow, go to Studentloans.gov to complete the Direct Loan MPN and entry counseling.

When completing your MPN and entry counseling, you will be asked for your federal PIN number.  This is the same number you used to electronically sign your FAFSA.  If you need to request a PIN, visit the federal PIN website at www.pin.ed.gov.

Prior Federal Loans and Financial Aid History - If you currently have a Stafford Loan and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov. and use your federal PIN (FAFSA pin) to access your information.

Steps To Complete The Process For First Time Borrowers

Entrance Counseling:  

All first-time borrowers are required to receive entrance counseling before loan funds will be disbursed.  This counseling will provide you with your rights and responsibilities as a student loan borrower.  To complete this requirement online, please visit StudentLoans.gov being sure to request that confirmation be sent to BVU. 

Master Promissory Note

As a first-time borrower you will also be required to complete a Federal Direct Stafford Loan Master Promissory Note (MPN).  The MPN will be used for all Federal Direct Subsidized and/or Unsubsidized Loans that you borrow.  You will only need to complete one MPN while enrolled at Buena Vista University.

You will be asked for your federal PIN number when completing the MPN.  This is the same number you used to electronically sign your FAFSA.  If you need to request a PIN or have forgotten yours, visit the federal PIN website at www.pin.ed.gov.

To complete the electronic MPN, go to StudentLoans.gov.

A Federal Direct Stafford Loan will not be processed until the Master Promissory Note and entry loan counseling have been completed.

Transfer Students

If you have previously borrowed a Federal Direct Stafford Loan and completed a MPN at another institution, you do not need to complete a new MPN. Simply notify the Office of Financial Assistance.

Federal Direct Stafford Loan Rates

• Undergrad Program

Federal Direct Subsidized Stafford Loan rate: fixed @ 3.4%  (as of July 1,2011)

Federal Direct Unsubsidized Stafford Loan rate:  fixed @ 6.8%

• Graduate Program

Federal Direct Subsidized and Unsubsidized Stafford Loan rate:  fixed @ 6.8%

Federal Direct Stafford Loan Benefits

• Fees

There is a 1% origination fee, with a 0.5% upfront fee rebate for a net fee of .5%.  You are eligible to keep this benefit as long as you make the first 12 monthly payments of your student loan on time when you are in repayment. Visit the Direct Loan Servicing website for more information.

• Rate Reduction for Auto Payment

Electronic Debit Account (EDA):  If you repay your loans through the EDA repayment option, you will receive a quarter point (.25%) discount on your interest while in repayment.

If you need assistance, contact the Office of Financial Assistance at 712.749.2164 or email finaid@bvu.edu.