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FEDERAL STAFFORD LOAN INFORMATION AND INSTRUCTIONS

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									                                            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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