Office of University Financial Aid
College of Arts & Sciences
Federal Stafford Student Loan
How to Apply Online
(Students without internet access should contact the financial aid office at 651.638.6241.)
- Entrance Counseling: If you are a new or transfer student borrowing your first Stafford Loan at Bethel University, you must complete online Stafford Loan Entrance Counseling
(at the Mapping Your Future website).
- Choose a lender: If you are a first-time Stafford borrower at Bethel, you need to select a lender for your Stafford Loan. Repeat borrowers will be kept with their prior lenders, unless they ask to change lenders. (Prior AFG, Bremer Bank, SLXpress, and TCF borrowers must choose a new lender for 2008-09. See the discontinued lenders note at the bottom of this page.) If you want to change your Stafford lender, you must complete a new Master Promissory Note and notify the financial aid office of your decision (steps 3 and 4 below). Students are free to select any lender for their educational loans. To assist students in selecting a lender, the financial aid office annually compiles a list of preferred lenders (see Bethel's criteria for preferred lenders). We encourage students to visit the preferred lender websites listed below to learn more about the specific benefits offered by each lender.
- Tell the financial aid office how much you plan to borrow: Complete and return either your Financial Aid Loan Response Form (included with your Financial Aid Award letter) or a Supplemental Loan Response Form so the financial aid office can certify your loan request.
- Promissory Note: First-time Stafford borrowers must complete a Master Promissory Note. To access the online application/promissory note for one of the preferred lenders listed below, choose the "TO APPLY" link for that lender. Be sure to select the same lender online as you did on the Loan Response Form.
Features
- 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.
- Unsubsidized Stafford: Interest accrues while student is "in school." Students may pay the interest while in school. Unpaid accrued interest is capitalized at repayment. This loan is not need-based.
- Loan counseling is required (entrance and exit).
- Student must be enrolled at least half time.
- Minimum payment is $50/month.
- 2008-2009 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 |
Graduate Students |
|
|
Subsidized |
Unsubsidized |
All Stafford Loans |
|
July 1, 2007 to June 30, 2008 |
6.8% |
6.8% |
6.8% |
|
July 1, 2008 to June 30, 2009 |
6.0% |
6.8% |
6.8% |
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.
Loan Fees
- All Stafford Loans are charged fees of 2.0 percent for 2008-2009 (origination fee of 1.0 percent plus a federal default fee of 1.0 percent for a total fee of 2.0 percent). However, some lenders and guarantors will pay a portion of these fees on behalf of the borrower.
- Fees reduce the amount of loan proceeds borrowers receive. For example, a $3,500 loan with a 2 percent fee ($70) will result in a net loan of $3,430 disbursed to the borrower ($3,500 minus $70 equals $3,430).
Choosing A Lender
To assist students in selecting a lender, the financial aid office conducts an annual evaluation of potential lenders. Students are free to select any lender for their educational loans. However, after a thorough review of lender data, we encourage borrowers to strongly consider one of the following preferred lenders to ensure that they receive the highest level of customer service, avoid delays in processing loans, and have access to the best borrower benefits available to Bethel students.
Summary of Borrower Benefits*
All of Bethel's preferred lenders offer financial benefits to their
borrowers. Please visit the lenders' websites listed below to learn more about the
specific benefits they offer (e.g., rebates of principal, reduced
interest rates for graduation and/or automatic payments).
Current Preferred Lenders List
Stafford Lender |
Initial Loan Fees Paid by Borrower |
Citibank
|
1% default fee |
U.S. Bank
|
1% default fee |
Wachovia Education Finance
|
1% origination fee 1% default fee |
Wells Fargo
|
1% default fee |
* These benefits are for loans processed for the 2008-2009 academic year and are subject to change without notice. The information above is correct as of February 1, 2008. Visit the lenders' websites for current information.
Note: Previous borrowers of discontinued lenders
Effective April 1, 2008, Academic Funding Group (AFG), Bremer Bank, EFSI, Student Loan Xpress (SLXpress), and TCF Bank (TCF) are no longer participating in the Federal Family Education Loan Program (FFELP). Therefore, you will not be able to borrow a Stafford, Parent PLUS, or Grad PLUS loan from these lenders for the 2008-2009 year. These lenders also terminated their private educational loan products. Prior borrowers of Stafford and PLUS loans from these lenders will need to select a new lender and complete a new Master Promissory Note for 2008-2009. Prior borrowers of private loans from these lenders will need to select a new lender for the private loan. If you have any questions, please contact the financial aid office by email at finaid@bethel.edu or by telephone at 651.638.6241.
May 28, 2008 update: Total Higher Education (T.H.E.) temporarily suspended their participation in the FFELP from April 1, 2008 through May 27, 2008. As a result of this suspension, T.H.E. forfeited its "preferred lender" status with Bethel University for the 2008-2009 academic year. For more information regarding T.H.E.'s educational loan products, visit www.theloanprogram.org .
To see a current list of lenders that are no longer participating in the federal loan programs, visit http://www.finaid.org/loans/lenderlayoffs.phtml and scroll down to the "Loan Program Suspensions" table.