If this is the first time you have borrowed a Stafford loan, you must complete the following steps before your loan funds can be disbursed.
1. Complete online entrance counseling at Mapping Your Future. Please follow all the instructions.
2. Select a lender at www.bethanylb.edu/StaffordLoan, or another lender of your choice. Make sure all steps are completed.
Federal subsidized and unsubsidized Stafford Loans allow students to borrow up to
- $3,500 per year for the first year of college,
- $4,500 after completing 24 hours, and
- $5,500 after completing 48 hours.
The loans are made from lending institutions at an interest rate of 6.0 percent beginning July 1, 2008. Repayment begins six months after graduating, leaving college, or dropping below half-time status. Prior to disbursement, the lender may deduct up to 1 percent for fees.
Subsidized loans are available to students with need, and the government pays interest for students while they are in school. Eligibility for unsubsidized loans is not based on need, so these loans are available to anyone who completes the FAFSA. Students are responsible for paying the interest that accrues.
Average indebtedness among student borrowers who graduated or left Bethany in Spring 2007 was $17,250. At current Stafford Loan interest rates, monthly payments would average approximately $200.
If you have any questions regarding the loan application process, contact the Financial Aid Office at (800) 826-2281, ext. 8114.
