College of Arts & Sciences

Direct Stafford Student Loan

Beginning in fall 2009, Bethel University will participate in the William D. Ford Federal Direct Loan Program. This means that students will now get Stafford Loans directly through the Department of Education, rather than through private lenders participating in the Federal Family Education Loan Program (FFELP). All students borrowing a Stafford loan for 2009-2010 must complete a new Master Promissory Note (MPN), see instructions below.

How to Apply Online

(Students without internet access should contact the financial aid office at 651.638.6241.)

Entrance Counseling: New Bethel borrowers must complete Stafford Loan Entrance Counseling online at the Federal Student Loan Servicing website. (If you borrowed a Federal Stafford loan previously at Bethel and completed entrance counseling in a year prior to 2009-2010, you do not have to complete Direct Loan Entrance Counseling)
Complete a Master Promissory Note: All students must complete a new Master Promissory Note (MPN) at the Federal Student Aid Direct Loan website even if you have previously borrowed a Stafford Loan at Bethel.

You may sign your MPN online by using your Department of Education PIN (the same PIN that you may have used to sign your FAFSA). If you do not have a Department of Education PIN, or you have lost your PIN, you may obtain one by visiting http://www.pin.ed.gov/PINWebApp/pinindex.jsp.
Request Loan Amount: You may request your Stafford Loan amount online via BLink.
- Use the button above to log in to BLink at blink.bethel.edu
- Choose the Student Services tab and click the Financial Aid Awards link within the Financial Aid Awards channel.
- Select Academic Year 2009-10 from the dropdown list.
- Click the Accept Award Offer tab, decide how much of your Direct Stafford Loan you wish to borrow and follow the instructions on the screen.
- Click the Submit Decision button to save your request

If you prefer not to accept your loan online, you may complete and submit a paper Financial Aid Loan Response Form. Your Direct Stafford Loan will not be processed until you have requested the loan amount.

Features

Direct Subsidized Stafford: Federal government pays interest while student is enrolled in school (at least half time, pursuing a degree or certificate) and during a six-month grace period after leaving in-school status. This loan is need-based.
Direct Unsubsidized Stafford: This loan is not need-based. Interest accrues while student is in school. Students may pay the interest while in school. Unpaid accrued interest is capitalized at repayment.
Loan counseling is required (entrance and exit).
Student must be enrolled at least half time.
Minimum payment is $50/month.

Maximum Annual Loan Limits:

Dependent
Student

Independent
Student

1st Year

$5,500 - No more than $3,500 of this amount may be subsidized

$9,500 - No more than $3,500 of this amount may be subsidized

2nd Year

$6,500 - No more than $4,500 of this amount may be subsidized

$10,500 - No more than $4,500 of this amount may be subsidized

3rd and 4th Years (each)

$7,500 - No more than $5,500 of this amount may be subsidized

$12,500 - No more than $5,500 of this amount may be subsidized

Maximum Total Stafford Loan Debt When You Graduate

$31,000 - No more than $23,000 of this amount may be in subsidized loans

$57,500 - No more than $23,000 of this amount may be in subsidized loans

Interest Rates

Stafford Loans have a fixed interest rate for the life of the loan. The rate varies depending on the type of loan, the student's enrollment status, and the date the loan is disbursed, as illustrated below.

Loans First Disbursed	Undergraduate Students	Undergraduate Students
	Subsidized	Unsubsidized
July 1, 2009 to June 30, 2010	5.6%	6.8%
July 1, 2008 to June 30, 2009	6.0%	6.8%
July 1, 2007 to June 30, 2008	6.8%	6.8%

Loan Fees

The fee for Direct Subsidized and Unsubsidized Loans is 1.5%; however, a 1% interest rate rebate reduces this fee to a net of .5%. Once you begin repayment you must make 12 on-time monthly payments to retain this benefit.

Disbursement

Funds are disbursed directly to the student's Bethel account. Half of the funds (less any loan fees) are posted at the beginning of fall term; half of the funds are posted at the beginning of spring term.

Processing Deadline

July 1 for full-year and fall semester loans; November 15 for spring semester loans; May 1 for summer semester loans.

Direct Loan Information

For additional information regarding the Direct Loan Program, visit the U.S. Department of Education's Direct Loan website at http://www.direct.ed.gov/student.html or choose one of the links below.