Student Loan Information

Stafford Student Loans

Every academic year each student MUST COMPLETE the Free Application for Federal Student Aid (FAFSA) to determine eligibility for Stafford loans.

Stafford Loan Forms

2009-2010 Annual Stafford Student Loan Limits

First Year(0-29 Hours)
Subsidized $3,500
Unsubsidized $6,000 ($2000 for dependent students)
Total $9,500

Second Year(30+ Hours)
Subsidized $4,500
Unsubsidized $4,000 ($2000 for dependent students)
Total $8,500

What are Stafford Student Loans?

The Federal Stafford Loan is designed to help students pay for their education. There are two types of Stafford Loans - subsidized and unsubsidized. Eligibility for subsidized loans is based on financial need as determined by federal guidelines. A loan is called "subsidized" because the government pays the interest for the student during:

At least half-time enrollment in school (6 or more hours)
The six-month grace period after the student ceases attendance on at least a half-time basis.

Unsubsidized Stafford loans are available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues. You may choose to pay the interest portion while in school, which would keep your loan balance at the original principal balance. If you choose to defer such payments, the interest will be capitalized, resulting in an increase in both total debt and the amount of monthly payments.

Applying for a Stafford Student Loan

To request a student loan, you'll need to submit a written request to the financial aid office including your name, social security number and the amount that you are requesting. This can be done by indicating on your UACCB Student Data Form that you would like to be processed for a student loan. You can also provide an email or any other written request on paper.

An updated award letter will be mailed to you including the student loan amount that you've requested. You must sign, accept and return the award letter in order to complete the application process.

After receiving your accepted award letter, the financial aid office will notify your lender that a student loan has been requested. If you are a first-time borrower, your lender will contact you via email or regular mail to have you complete a Master Promissory Note (MPN). This document must be completed in order for your loan to process. You must also complete Stafford Entrance Counseling as required by the federal government.

Shortly before UACCB schedules student refunds, your lender will send the funds for your student loan to the UACCB Business Office. If you are a first-time borrower, your loan will not be disbursed until 30 days after the first day of classes.

Keep in mind that federal regulations require all student loan funds to be disbursed in at least two payments. If you've requested a student loan for the whole academic year, half of your loan funds will be disbursed in the fall and the other half will disburse in the spring. If you've requested a student loan for only one semester, then funds will disburse early in the semester and after the mid-point of the semester.