Debt Management

Maximum Loan Amounts

Under both the Federal Stafford Loan Program, subsidized and unsubsidized, you are subject to annual and aggregate loan limits that are based on you academic level and the length of the academic program. If you have received student loans from more than one lender, you are responsible for informing your school and lender of your other student loans. In some cases you may not be eligible for loans for which you have applied.

Use Of Loan Proceeds

You must use loan proceeds for authorized educational expenses incurred to attend the school named (for the period indicated) on the application. Authorized expenses include tuition, room, board, fees, books, supplies, equipment, dependent child care, transportation, and commuting expenses. Loan proceeds may not be used to purchase or lease an automobile.

Change of Status

You must notify the financial aid office of your school if you reduce your enrollment status to less than half time, withdraw, or fail to enroll at the conclusion of a term. You must also notify your school of any change in you local or permanent address during enrollment. Shortly before you end enrollment, you must participate in the Exit Counseling session with your school during which you will update important loan records regarding your address, telephone number, future employer, and repayment plans. Federal law also requires that you notify your lender (or any subsequent holder of your loans) in writing if any of the following events occur before a loan is repaid:

1. You change your address
2. You change your name (maiden name to married name)
3. You fail to enroll in school for the loan period certified
4. You withdraw from school or begin attending less than 1/2 time
5. You transfer from one school to another school
6. You graduate
7. You change your employer or your employer's address changes
8. You have any other change in status that would affect you loan status

Effect Of Loans On Other Student Aid

As receipt of a loan will affect your eligibility for other student aid, it may be to your benefit to first determine your eligibility for grants, work-study funds, and other forms of student assistance. Before receiving a loan, you must receive a determination of you Pell Grant eligibility.

Interest Rate

Except for interest charges, the federal government will pay on your behalf for a subsidized Federal Stafford Loans. You have agreed to pay interest on the principal amount of your loan(s) from the date of disbursement until the loan is paid in full. The actual interest rate applicable to your loan(s) will be disclosed to you in the Disclosure Statement. Our Service works with you, through the large pile of paperwork in the beginning, but even more importantly, they stay with you through your scholastic career.

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