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Office of Financial Aid

Graduate School

Federal Stafford Student Loan

Beginning summer 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 for 2009-2010

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

  1. Complete the steps to apply for financial aid: Follow the instructions on the How To Apply webpage and wait to receive your Financial Aid Award letter showing your loan eligibility before you apply for loans.

  2. 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.)

    GS Entrance Counseling button


  3. 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.

    GS Stafford MPN button


    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 www.pin.ed.gov.

  4. Request Loan Amount: You may request your Stafford Loan amount online via BLink.

    GS Request via BLink button


    • 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 Federal Direct Stafford Loan Request 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:

  • Annual loan limit for grad/professional: $20,500 - no more than $8,500 of this amount may be in subsidized loans.
  • Cumulative maximum total Stafford debt limit when you graduate: $138,500 - no more than $65,000 of this amount may be in subsidized loans. The cumulative graduate debt limit includes Stafford Loans received for undergraduate study.

Interest Rates

  • Stafford Loans disbursed after 7/1/2006 have a 6.8% fixed interest rate.

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.

Processing Deadline

Students should complete this process by October 15 for fall semester, March 15 for spring semester, and July 15 for summer semester. Federal Stafford loans cannot be processed after a semester has ended or when a student is no longer enrolled.