Stafford Loan
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Federal Subsidized Stafford Loan: Subsidized loan eligibility is based on financial need as determined by completing
the Free Application for Federal Student Aid (FAFSA). Maximum loan amounts per academic year are $3,500 for
freshman, $4,500 for sophomores and $5,500 for juniors and seniors. Loan limits are based on the student's class standing at Carthage. The aggregate
loan limit for undergraduate study is $23,000. The loan is disbursed electronically to the Carthage Business Office in two disbursements. One is disbursed
at the beginning of the fall semester and the second is disbursed at the beginning of the spring semester. A 3% loan fee may be subtracted from the amount
the student borrows by some lenders.
Subsidized means the federal government pays the loan interest while the student is enrolled at least half-time and during the six month
grace period after the student leaves school. The current interest rate is fixed at 6.0%. (This rate is in effect for the period 7/1/08 through 6/30/09.) The
minimum monthly payment is $50, with up to 10 years to repay the loan. Deferments, loan consolidation and refinancing options are available.
Federal Unsubsidized Stafford Loan: This is a federal loan for students who do not qualify, in whole or part, for a Subsidized
Stafford Loan. Eligibility for this loan is not based on financial need or family income, but a student must submit a Free
Application for Federal Student Aid (FAFSA) to qualify for this loan.
Unsubsidized means that the federal government does NOT pay the interest on the loan. Interest begins accruing at the time of disbursement.
The student has the option of either making those interest payments while enrolled or deferring those payments and allowing the interest to capitalize until
they go into full repayment six months after graduation, withdrawal, or dropping below 6 credits. The current interest rate is fixed at 6.8% . (These rates are in
effect for the period 7/1/08 through 6/30/09.) The award letter received from Carthage will reflect the type and amount of loan a student qualifies for each
academic year.
2008-2009 Stafford Loan Lender List: When you apply below, you will be linked to the FAST CHOICE Stafford loan lender list. These are
lenders that work electronically with Carthage and have been reviewed keeping the best interests of the students in mind. You are not required to use one of
these lenders. Should you wish to use a different lender, you should contact the Financial Aid office. Should you have problems with the FASTCHOICE
program, contact 1-800-824-8725 for assistance.
Stafford loans are federally guaranteed and the guarantor agent we use is Great Lakes Higher Education. You will receive a Disclosure Statement from
Great Lakes concerning your Stafford loans. Eligibility requirements and basic terms of the loan are the same for each lender; however, each lender has
additional benefits to borrowers. Contact each lender for the most up-to-date loan information.
- You may not be eligible for zero upfront fees. In choosing a lender, please call them at the number provided on our lender list to find out their current
terms. As a result of the Cost Reduction Act passed by the federal government, origination fees and repayment incentives are being changed by
lenders.
- You can download a Stafford loan lender list here, but understand that it may not be as
up to date as the terms listed on the FAST CHOICE product. Review these carefully.
Stafford Loan Application and Processing: Federal Stafford Loan (Subsidized and
Unsubsidized) processing is done using the Master Promissory Note (MPN). The MPN is a legal document signed by the student and a lender and only
needs to be completed once during enrollment at Carthage. Even though your Stafford loan is federally guaranteed and processed by Great Lakes Higher
Education, the funds actually come from a private lender. When completing the Stafford MPN, you will need to choose a lender.
When you click on the link below, you will first be led to the login where you must give some general demographic information. Then you will be brought
to our FAST CHOICE list of preferred lenders for Stafford loans. You are not required to use one of these lenders. If you wish to use a different lender, please
contact the Financial Aid Office. After choosing your lender in Fast Choice, you will be led through a process to complete Stafford Entrance Counseling
and Stafford Master Promissory Note. Be sure to complete both items or your loan will not disburse. Apply Online for a Stafford Loan
Stafford Loan Exit Counseling: Students are required to complete Stafford Loan Exit Counseling after they graduate or withdraw from
Carthage. Complete Stafford Loan Exit Counseling Online.
Federal Loan Consolidation: After a student graduates or quits school for six months, the student needs to make a decision
concerning loan consolidation or repayment. Read more...
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