Mansfield University Home PageThe Federal Stafford Loan is a long-term, low-interest loan that is awarded by the Office of Financial Aid. The loan is funded by participating banks, savings and loan associations, and credit unions and is guaranteed by state or government agencies. Because the loan is guaranteed, it is not based upon your credit history or income.
Repayment of the principal begins 6 months after you cease half-time enrollment, and the average repayment term is 10 years.
All students are eligible to receive a Federal Stafford Loan. The amount you may receive for the academic year is based on your financial need and academic level and is determined by the Mansfield Office of Financial Aid.
Subsidized vs. Unsubsidized Stafford Loans
Your Stafford Loan award may be Subsidized, Unsubsidized, or a combination of the two.
Subsidized Loans are awarded on the basis of financial need. They are interest-free while you are enrolled at least half-time and during periods of authorized deferments. The federal government subsidizes the interest during these periods. Interest will be charged once you enter repayment.
Unsubsidized Loans are not awarded on the basis of need, but they do take into consideration your cost of attendance and any other aid you receive. You are charged interest from the time the loan is disbursed until it is paid in full. You may choose to defer the interest during enrollment and deferment periods, but it will be capitalized (added to the principal amount).
Interest Rate and Loan Fees
Stafford Loans have variable interest rates based on the 91-day T-bill rate + 1.7% during the enrollment period, with an additional 0.6% increase upon entering repayment. The rates are adjusted annually on July 1st and can never exceed 8.25%. The interest rate on loans borrowed for the 04-05 year will be 2.77%. All lenders offer the same rate for the Stafford Loan, although some may offer discounts for on-time and electronic payment.
Loan Limits
The chart below lists the maximum yearly amounts that you may borrow in both Federal Subsidized and Unsubsidized Loans. You may receive less than this maximum amount if you receive other financial aid that is used to cover a portion of your cost of attendance.
| Dependent Students (EXCEPT Students Whose Parents Cannot Borrow PLUS) | Base Amount | Additional Unsubsidized loan amount effective 7/1/08 and later |
| Freshman | $3,500 | $2000 |
| Sophomore | $4,500 | $2000 |
| Junior | $5,500 | $2000 |
| Senior | $5,500 | $2000 |
| Independent Undergraduate Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan | Base Amount | Additional Unsubsidized loan amount effective 7/1/08 and later |
| Freshman | $3,500 | $6000 |
| Sophomore | $4,500 | $6000 |
| Junior | $5,500 | $7000 |
| Senior | $5,500 | $7000 |
| Graduate and Professional Students | Base Amount | Additional Unsubsidized loan amount |
| $8,500 | $12, 000 |
Aggregate
The total amount that you may borrow from all combined Stafford Loans is:
| Dependent Undergraduates | $31,000* (of which no more than $23,000 can be subsidized) |
| Independent Undergraduates | $57,500* (of which no more than $23,000 can be Subsidized) |
| Graduate/Professional Students | $138,500* (of which no more than $65,500 can be Subsidized). This debt includes any Stafford Loans borrowed during Undergraduate study. |
* Effective July 1, 2008
How Do I Apply For A Stafford Loan
By filing the FAFSA, you are automatically considered for Federal Stafford Loan eligibility. The Federal Stafford Loan award on your Financial Aid Award Notice indicates the loan amount that you are eligible to borrow.
Returning Borrowers:
If you have borrowed a Federal Stafford Loan in previous years, filing the FAFSA is the only step needed to renew your loan. You do not need to complete Steps 1 and 2 listed below.
New Borrowers:
To accept this loan and have it apply toward your Fall bill, you must complete the following two steps:
Step 1: Complete the online Stafford Loan Entrance Counseling Session
The online Entrance Counseling session will explain your rights and responsibilities as a borrower. You should understand the importance of borrowing loan funds before completing your promissory note. You may complete the session by clicking the picture to the right.
Step 2: Complete the online Master Promissory Note (MPN)
The Master Promissory Note (MPN) is your official Stafford Loan application. By completing it, you agree to your rights and responsibilities as a borrower and consent to Federal Stafford Loan funds being transmitted to your Mansfield account. You will only need to complete your MPN once during your enrollment at Mansfield University. Your loan will automatically be renewed each year.
While completing your MPN, please keep the following in mind:
- You will be asked to select the school that you will be attending. You must select Mansfield University (school code 003324).
- You will need your Federal Personal Identification Number (PIN). This PIN was assigned to you when you completed your Free Application for Federal Student Aid (FAFSA). If you do not have this PIN, you may request it at http://www.pin.ed.gov.
- You will need the name and addresses of two (2) references. One reference may be a parent.
You are encouraged to use one of the lenders shown on our preferred lender page.- If you have your PIN and reference information on hand and have selected your lender, you may complete your online MPN by clicking the picture to the right and selecting Apply for a Stafford Loan: