Federal Stafford and Federal PLUS Loan Processing Options

Interest Rate Information

President Bush signed The College Cost Reduction and Access Act (H.R. 2669) into law on Sept. 27, 2007. This law creates a change in the interest rate charged for Federal Stafford Loans. Check this page for more information.

PLUS loans are available to parents of dependent undergraduate students. Families do not need to complete the FAFSA to apply for a PLUS loan. (Grad PLUS Loans are available to Graduate and Professional Students starting on July 1, 2006).

For PLUS and Grad PLUS Loans disbursed July 1, 2006 and later, the interest rate will be set at a FIXED RATE of 8.5%;

The Ensuring Continued Access to Student Loans Act of 2008 ("ECASLA")

This legislation was originally approved by the House of Representatives on April 17, 2008. President Bush signed it into law on May 7, 2008.

New undergraduate Stafford loan limits effective July 1, 2008

Choosing a Lender

Although the basic terms of the loan are the same, lenders offer a variety of services to families. We would urge everyone who is borrowing for the first time visit each lender's Internet site and find the "right match" for their needs.

Students can choose to use any lender . By law, staff members in the Office of Scholarships and Financial Aid can not make this important personal decision for any student.Families who are new to the loan application process may want to review the following information

FinAid:The Smart Student Guide to Financial Aid maintains a comprehensive database of lenders that you can use to investigate other lenders.
The Greentree Gazette has compiled The Student Loan Buying Guide , a comprehensive database with information on financing options through many major lenders.
The Project on Student Debt's Comparing Discounts on Federal Student Loans
How to Choose a Lender
- " Choosing a Lender " from the U.S. Department of Education's Student Aid on the Web
- Choosing A Lender from FinAid:The Smart Student Guide to Financial Aid
- Look Before You Leap: Student Loan Shopping Techniques from The Project on Student Debt

Streamlined Electronic Loan Processing Information

The Office of Scholarships and Financial Aid works with a number of major lenders to provide a streamlined electronic application process for Federal Stafford and PLUS Loans. If you are interested in participating in this streamlined process, we will electronically certify your loan eligibility with one of the following participating lenders . You will be able to complete their Master Promissory Note online. Students without Internet access can call 1-888-272-5543 and request their lender mail a pre-printed paper MPN to their address. Students must complete a MPN before funds can be disbursed. Funds will be disbursed via an electronic funds transfer from the lender to the student's account with the Student Finance Office .

We encourage families to visit each lender's web site to check on the benefits that they offer. These lenders have a record of providing excellent customer service to families, including during the historic "Katrina semester" (the 2005 fall semester).We have not received any financial incentives from these lenders in exchange for highlighting them on this website . Lenders are listed in random order each time this page is displayed in order to comply with recent federal legislation that dictates that we only can provide "Lender Neutral" lists (alphabetical lists are apparently not "lender neutral").

Families who are interested in utilizing other lenders should check with their financial aid counselors to see if we can incorporate them into out electronic arrangements with them to process loans.

2008-2009 Processing Information:

We are working with Simple Tuition to provide families a simple student loan comparison tool that will compare the benefits offered by lenders who participate in our streamlined electronic loan application system.NOTE: The website will also give you the option to display the information from ALL lenders in their database.

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PLEASE NOTE: "Borrower Benefit" Programs are subject to change without notice.

One consequence of recent legislation is that most of the "back-end" borrower benefits that lenders have historically offered will no longer be availble IF they choose to sell their loans to the Department of Education.

We will assume that students who borrowed during the 2007-2008 academic year will continue to borrow from the same lender. Students who wish to change lenders must notify our office in writing (finaid@loyno.edu) .

All students must return a Financial Aid Response Form and official "accept" the Stafford Loan as part of their financial aid package. This form gives permission to the Office of Scholarships and Financial Aid to electronically transmit application data to the student's lender. Students who are borrowing for the first time must also complete the Choosing Your Lender Form. We encourage all students who are completing online forms to sign on to LORA since this will provide additional security for your transmitted information. Forms are also available in the Forms and Publications section of our website

Students who choose to use other Stafford lenders will need to submit their Master Promissory Note as well as a School Certification Form to our office. Loans from other lenders may be disbursed via an electronic funds transfer OR by paper check (depending on the lender). Please check with your lender so that you understand how and when you will receive the proceeds from your loan.

Law students have a separate major lender list that includes lenders who will accept electronic loan transmissions from our office and who offer additional private loan programs. Participating lenders include

Right To Cancel

If you have a federal loan, you have the right to cancel the loan within a 30 day period. However, if you choose to cancel, the loan will be removed from your tuition account, and as a result, you may owe the university.

PLUS Loan Borrowers

This section will provide additional information to families interested in the Federal PLUS Loan Program.

Graduate and Professional Students interested in the Graduate PLUS Loan Program MUST complete the Free Application for Federal Student Aid ("FAFSA") and first utilize the Federal Stafford Loan Program since the terms of the Stafford loan are more beneficial to the student . This requirement was outlined in a letter published on February 19, 2008.

Effective July 1, 2008, students who have borrowed under the Federal Grad PLUS Loan must also complete an "Entrance Counseling" session before funds can be disbursed to their accounts.. The U.S. Department of Education wants to insure that students review the terms of their loan and understand their rights and responsibilities under this program.

We are working with Simple Tuition to create a "user friendly" platform for students to use to compare the benefits offered by these lenders under the Grad PLUS Program .