2010-2011 FEDERAL STAFFORD LOAN INFORMATION AND INSTRUCTIONS To borrow the Federal Stafford Loan, read all the information contained in this brochure then complete and submit the Stafford Loan Activation Form (LAF). We prefer that you submit the LAF electronically at www.finaid.unr.edu. However, we will also accept the LAF in person to Student Financial Aid and Scholarships, Fitzgerald Student Services Bldg. - 3rd floor, via U.S. Mail to Mailstop 0076, Reno, NV 89557 or via fax (775) 784-1025. If you have any questions, please contact our office at (775) 784-4666 or toll-free at (877) 666- 0014. TYPES OF LOANS Your Offer Letter reflects an estimated award of either a subsidized or unsubsidized Stafford Loan (or a combination of both). The Federal Direct Subsidized Stafford Loan (EST. STAF) is federally-sponsored “need-based” loan. The federal government pays the interest while you are enrolled at least half time, during the “grace period”, and authorized periods of deferment. Interest begins to accrue when you enter repayment. The Federal Direct Unsubsidized Stafford Loan (EST. UNSUB) is a federally-sponsored loan which has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan. FEES, INTEREST AND REPAYMENT UNDERGRADUATE STUDENTS ONLY: As of July 1, 2010, the interest rate on new Subsidized Federal Stafford Loan is a fixed 4.5%. GRADUATE, PROFESSIONAL and/or MEDICAL STUDENTS, the interest rate on new Subsidized Federal Stafford Loan is a fixed 6.8%. For ANY students who borrow an Unsubsidized Federal Stafford Loan, the interest rate is a fixed 6.8%. You may pay up to 1.0% in loan fees. For loans disbursed prior to July 1, 2006, the interest rate continues to be variable based on the 91-day T-bill. Repayment begins six months from the date of graduation, withdrawal, or enrollment less than half time. There is no pre-payment penalty. NEW BORROWERS AT THIS UNIVERSITY 1. Effective July 1, 2010 the William D Ford Federal Direct Loan program will be the sole provider of federal Stafford, Plus, and Graduate Plus loans. 2. Go to the Direct Loan website at https://studentloans.gov for more information including completing the Master Promissory Note (MPN) and signing using your FAFSA PIN. New borrowers must sign the Master Promissory Note before we will certify your loan(s) with the lender. If you don’t complete the online MPN, the lender will automatically mail you a pre-printed paper MPN, but this process is slower and may delay your funds. 3. Complete the ENTRANCE COUNSELING at https://studentloans.gov. New borrowers must complete Entrance Counseling before Stafford Loan funds will be certified with the lender. PROCESSING INSTRUCTIONS 1. Read these instructions carefully then submit the completed Loan Activation Form (LAF) to our office. 2. Review your Offer Letter on ePAWS. Consider your budget carefully and your anticipated expenses, then decide how much to borrow. You may request a specific dollar amount or request maximum on the LAF. A written dollar amount will take precedent over a request for maximum. 3. Once the LAF is received, a financial aid advisor will evaluate your borrowing history, check your actual class standing and confirm your Title IV financial aid eligibility, including Satisfactory Academic Progress (SAP). If you meet all eligibility requirements, your loan will be certified and the data transmitted electronically to the lender. DISBURSEMENT INFORMATION Once your loan is processed and guaranteed, the lender will send you a Notice of Guarantee (NOG) listing the approximate disbursement dates. When funds are received our office reconfirms your aid eligibility, including SAP. If you are eligible and registered in the appropriate number of credits, the funds are credited to your student account. Per federal regulations, funds cannot be disbursed to the University any earlier than 10 days prior the start of classes each semester. ENROLLMENT UNDERGRADUATE GRADUATE (must be graduate level courses) FUNDING OR TEACHING GA/TA’s are NOT exempt STATUS CERTIFICATE from this requirement. Full-Time 12 or more credits 9 or more credits ¾ Time 9 – 11 credits 7 – 8 credits ½ Time 6 – 8 credits 5 – 6 credits Our office notifies you in writing each time loan funds are disbursed into your student account. You are encouraged to utilize ePAWS at www.unr.edu to check on the status of your financial aid. After all University charges are paid, any remaining funds are mailed from the Cashier’s Office to the address listed on ePAWS or through direct deposit. Contact the Cashier’s Office to set up direct deposit. WILLIAM D FORD DIRECT LOAN PROGRAM Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (hereinafter will be called “the Lender”) rather than a bank or other financial institution. With Direct Loans, you Borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools. Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the web at www.dl.ed.gov Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change. Previous Borrowers If you have previously borrowed a federal Stafford, Plus, or Graduate Plus loan through a private lender in the FFELP loan program (Wells, Fargo, Bank of America, Citibank etc.,) they will no longer be offering loans and you will need to sign a new Master Promissory Note (MPN) with the Direct Loan program. IMPORTANT INFORMATION Academic year loans are disbursed in two equal increments, one each semester. A spring semester only loan is monitored for a minimum of seven working days by the National Student Loan Database System (NSLDS) to ensure that the borrower does not receive more than one loan for the semester and does not exceed the academic year borrowing limits. If you are transferring to this University, please cancel your spring loan at your previous college immediately. It is your responsibility to read The Guide. Go to www.finaid.unr.edu. You are required to maintain Satisfactory Academic Progress (SAP) in order to receive the Federal Stafford Loan. Undergraduate students must maintain a cumulative UNR GPA 2.0 or better; graduate students must maintain a cumulative UNR GPA 3.0 or better each semester. Furthermore, you must earn the credits for your enrollment/funding status. This is a brief synopsis only; you are required to read and understand the entire SAP regulations. Direct Loan Servicing https://www.dl.ed.gov This is your site for managing your account, view your account balances and payment history, enroll in electronic services, make online payments and change your billing options. Also 1098-E tax information and loan consolidation. Manage My Direct Loan https://studentloans.gov This site is your source for information from the U.S. Department of Education about how to mange your student loans. It is also the site to sign the Master Promissory Note and Complete Entrance Counseling. Information on repayment plans and calculators, loan discharge, public service and teacher loan forgiveness programs are available. ELM RESOURCES www.elmresources.com If you previously borrowed Stafford or Plus loans through a private lender this site can help you review your previous loan(s). It shows amounts, changes, disbursement dates, and more. NATIONAL STUDENT LOAN DATABASE SYSTEM (NSLDS) www.nslds.ed.gov This site is an excellent resource to help you track the principal and outstanding aggregate limit on your entire FFELP and Direct Stafford Loan borrowing history. EDFUND www.edfund.org This site offers financial literacy information, creating a budget using EdWise, information on repayment and loan forgiveness programs and your right and responsibilities as a loan borrower. DEFERMENTS Our office participates with the Student Clearinghouse which ensures the lender is updated several times a year with current enrollment status. If you borrowed a loan at another school and now would like your previous loan deferred, please contact your previous lender. If they request our office to complete a Deferment Form, you may submit the form to our office. Deferment forms can be obtained from your lender. REPAYMENT Once you graduate or drop below half-time, you have a one-time six month “grace period” before repayment begins. If you are not able to make the scheduled payments, contact your lender for a deferment, forbearance, or to discuss other repayment plans. ACHIEVING YOUR FINANCIAL GOALS – PAYING IT BACK When borrowing a Federal Stafford Loan, it is the borrower’s responsibility to ensure the loan is paid back in accordance with the terms detailed in the Master Promissory Note. The University has partnered with lenders and guarantors to develop a comprehensive default prevention plan. If you are delinquent in repayment, the University, the lender, and the guarantor will contact you to reestablish satisfactory payment arrangements. Defaulting on a federal student loan is very serious and could have costly consequences such as: Negative Credit History Wage Garnishment Higher Interest Rates on Future Purchases Denied Consumer Loans and Loss of Eligibility of Future Financial Aid Stress Collection costs Offset paid out of federal tax returns, state tax returns, lottery winnings, and other federal and state funds UNIVERSITY OF NEVADA, RENO 2010-2011 STAFFORD LOAN ACTIVATION FORM (LAF) Submit this form to our office, 3rd floor, Fitzgerald Student Services Bldg, MS 0076, Reno, NV 89557; or fax to (775) 784-1025. If you have any questions, please contact our office at (775) 784-4666 or toll-free at (877) 666-0014. Do not leave any questions blank. You must read the Stafford Loan Information and Instructions prior to completing this form. 1) STUDENT NAME: ________________________________ 2) R#: _____________________ 3) ADDRESS: _________________________________________________________________ No. Street Apt. City State Zip Code 4) BIRTHDATE: _____ /_____ /________ mo dd yr 5) TELEPHONE #: (_____) _____ - __________ CELL PHONE #: (_____) _____ - __________ 6) WHEN DO YOU EXPECT TO GRADUATE? ____ /____ mo yr 7) ARE YOU ADMITTED IN THE SCHOOL OF MEDICINE? No Yes - Year: I II III IV 8) ALL LOANS WILL BE PROCESSED FOR THE ACADEMIC YEAR UNLESS YOUR PLANNED ATTENDANCE IS FOR ONE-SEMESTER ONLY. If one-semester only, indicate below: Fall 2010 semester ONLY (08/10 – 12/10) Spring 2011 semester ONLY (01/11 - 05/11) 9) All Stafford loans will be processed through the William D. Ford Federal Direct Loan program **Master Promissory Note and Entrance Counseling can be completed at https://studentloans.gov.** Yes, I accept my loan(s) for the amount(s) listed below and have already signed a Direct Loan Master Promissory Note (MPN). I am a new borrower at the University of Nevada, Reno and have completed the Entrance Counseling. 10) HOW MUCH DO YOU WANT TO BORROW? Refer to your Offer Letter and Academic Year Borrowing Limits table. The written dollar amount will take precedent over the request for maximum. Please budget wisely. Subsidized: Maximum OR $__________________ Unsubsidized: Maximum OR $__________________ 11) OFFICIAL E-MAIL (print clearly): ________________________________________________________ 12) My signature below confirms that I have read and agree to abide by the policies and procedures as outlined in “The Guide”, including Satisfactory Academic Progress, and the “Stafford Loan Information and Instructions”. STUDENT SIGNATURE: ___________________________________________ DATE: ______________ FOR OFFICE USE ONLY Student SSN: _____________________________________________ MY Subsidized $_____________ F F 01 06 G 1st Timer Valid MPN?: Y N TMA Unsubsidized $_____________ T T 02 07 P00 NSLDS: Sub: $_________________ SASH Incr. Subsidized $_____________ H H 03 08 Med Unsub: $_________________ FREQ Incr. Unsubsidized $_____________ 04 09 FAST:__________ NEED: I D Prorate Certified by:_______________ Date: ____________ EDE:____________________ Date: _____________ ACADEMIC YEAR BORROWING LIMITS BY CLASS STANDING Dependent Students Base Stafford Loan Eligibility Additional Unsubsidized Class Standing Cumulative Credits Earned (Subsidized and Unsubsidized) Stafford Loan Eligibility Freshman 0-29 credits $3500 $2000 Sophomore 30-59 credits $4500 $2000 Junior 60-89 credits $5500 $2000 Senior or 2nd BA 90-191 credits $5500 $2000 Independent Students and Dependent Students Whose Parents Are PLUS Denied Base Stafford Loan Eligibility Additional Unsubsidized Class Standing Cumulative Credits Earned (Subsidized and Unsubsidized) Stafford Loan Eligibility Freshman 0-29 credits $3500 $6000 Sophomore 30-59 credits $4500 $6000 Junior 60-89 credits $5500 $7000 Senior or 2nd BA 90-191 credits $5500 $7000 Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase. Additional Categories Teaching Cert. $5500 $7000 Graduate 0-139 graduate credits $8500 $12,000 Medical 1st – 4th year $8500 $32,000 AGGREGATE LIFETIME LIMITS Category Maximum Stafford Loan Eligibility Dependent Undergraduate $31,000 (no more than $23,000 of which may be subsidized) Independent Undergraduate $57,500 (no more than $23,000 of which may be subsidized) Graduate $138,500 (no more than $65,500 of which may be subsidized) Medical $224,000 (no more than $65,500 of which may be subsidized) Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase.
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