Federal Stafford Loan Program
Step 1 - Sign and return your Financial Aid Award. You may indicate any decreases in the amount you want to borrow on your Award.
Step 2 - If you are a first time borrower, you need to complete a Master Promissory Note. This may be done online or by completing a paper application that can be obtained through the Office of Financial Aid. If you have previously borrowed a Stafford Loan you will indicate the amount you want to borrow on your Financial Aid Award. You do not need to complete another promissory note.
Step 3 - If you are a first time borrower you need to complete Student Loan Entrance Counseling. Choose the Stafford entrance. You are required to complete Entrance Counseling before funds can be disbursed to your student account.
The Federal Stafford Loan Program is a loan program with funds being provided by a private lender (see Augustana's Frequently Used Lenders). Beginning July 1, 2006, the interest rate is fixed at 6.8%. Origination and guarantee fees of up to 4 percent may be deducted from the loan amount you were awarded depending on the lender you choose.
The Federal Stafford Loan comes in two forms:
Subsidized Stafford Loan - This loan is need-based; interest does not accrue and the payment of principal is deferred while you are enrolled at least half-time and for six months after your enrollment drops below half-time status.
Unsubsidized Stafford Loan - This loan is non-need based; payment of the principal is deferred while you are enrolled at least half-time and for six months after your enrollment period drops below half-time status. Interest on this loan begins accruing at the time of disbursement. Currently, the interest on an unsubsidized loan is fixed at 6.80% while you are enrolled in school. You have the option of making quarterly interest payments while in school or allowing the interest to be capitalized (added to the principal).
Loan Limits: The maximum (combined Subsidized and Unsubsidized) annual limits for these loans are as follows: