Stafford Student Loans

Here are some interesting details about the Stafford Student Loan program:

• Stafford Student Loan funds will very likely be one of the awards included as part of your package when you receive your detailed Financial Aid Award Letter.
• You will need to take some steps to confirm to us that you wish to receive the funds shown, but you are assured of being eligible for them.
• The Stafford Loan program includes a fixed interest rate of 6.8 percent.
• Two types of Stafford dollars may be available, depending on your status and the extent of your financial need, according to the FAFSA. In some cases, your available dollars may be a combination of both types of loan dollars shown below.
  • Subsidized Stafford Loan dollars are part of your financial need. On subsidized dollars, the government pays all interest charges as long as you remain enrolled at least half-time.
  • Unsubsidized Stafford Loan dollars are NOT part of your financial need. On these, you are responsible for interest costs from the start of the loan, though you have the option of adding it to the principle and paying it later.
• The dollar amount available depends on your year classification. Remember that the year classification depends on credit hours achieved, not the number of years you have been in college.
  • Freshman students (fewer than 31 hrs) are eligible for up to $3,500 for the year.
  • Sophomores (31-60 hrs) are eligible for up to $4,500 for the year.
  • Juniors and seniors (Jr level starts at 61 hrs) are eligible for up to $5,500 per year.
• Loan principle does not have to be repaid as long as you remain enrolled in school at least half-time. Upon graduation, or if you leave school for other reasons, there is a 6 month grace period before repayment begins.
• The standard repayment period is 10 years, with no penalty for prepayment.

Note: Independent students are eligible to borrow unsubsidized dollars in addition to the class-year limits shown above. Freshmen and sophomores can borrow an additional $4,000. Juniors and seniors can borrow an additional $5,000.

Once you have received your award letter, you may wish to go ahead and confirm your desire to receive the loan funds offered. The processes for requesting funds for either new borrowers or repeat borrowers are outlined below.

First Time Stafford Borrowers at Taylor University Fort Wayne should follow the procedure below.  Please read this entire procedure before moving ahead:

1. Enter the information requested below, and click the "Search Now" button. The Loan Amount is the Stafford eligibility amount shown on your award letter – for most, $3,500 for new students. Use August 2008 as the loan needed date, and for new students, May 2012 as the graduation date. These dates are used to calculate loan values.
2. Select the lender you feel is your best choice from among those suggested. When you've made your selection, click on the "Apply" button for that lender. If you prefer to use a different lender, contact our office.
3. "Register" by setting up an ID and password, on the right-hand side of the OpenNet screen you will see.
4. Log on to OpenNet, and you will receive instructions to complete the "Entrance Counseling" process and your Stafford Master Promissory Note.

Note that some lenders deduct fees of up to 2 percent of the loan value from the initial proceeds of the loan. You can verify what to expect by looking at the blue type beside each lender's logo on the lender comparison page, or by checking two lenders to compare the loan details, and looking at the fee information close to the bottom of the resulting detail page.