Stafford Loan

Loans provide students with an opportunity to invest in their future. The Federal Stafford Loan Program is administered by guarantee agencies, which, with the backing of the federal government, insure lenders against loss should a borrower default on the loan. There are two basic types of Stafford loans: subsidized and unsubsidized. Both have the same fixed interest rate, which is determined each year on July 1st. Please contact your lender for the current rate. Effective July 1st 2006 all Stafford Loans will have a fixed interest rate of 6.8%.

Subsidized
Government pays the interest to the lender while the student is in the deferment period.

Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed.

The student’s cost of attendance must exceed his/her Expected Family Contribution (EFC) to be eligible for “need-based” aid (such as grants, scholarships and subsidized loans).

The EFC is based on information collected from the Free Application for Federal Student Aid (FAFSA). The total amount of the subsidized loan combined with other “need-based” aid cannot exceed the student’s “financial need.”

Unsubsidized
Government does not pay the interest on behalf of the student.

Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses.

Independent students may be eligible for greater unsubsidized amounts than dependent students. See Borrowing Limits.

Though it is non-need based aid, the amount of the unsubsidized loan combined with other aid cannot exceed the total estimated cost of attendance.

Stafford Loan Eligibility

Students Must:

Students Cannot:

File the FAFSA. Be a U.S. citizen or eligible non-citizen. Have a high school diploma or equivalent. Be classified as degree seeking at UCF in an eligible program. Enroll for at least half-time at UCF in UCF classes. At time of disbursement, students must be attending at least six hours. • Undergraduates = 6 credit hours • Graduates & Doctoral Students = 4.5 credit hours • Doctoral Dissertation Students = 3 credit hours - 3 hours is acceptable for graduate and doctoral students only during the summer term. Maintain UCF’s Standards for Satisfactory Academic Progress (SAP). Complete verification (if selected). Complete the online Loan Entrance Interview. Satisfy all selective service requirements.

Default on any educational loan or owe repayment on a federal grant at this or any other institution. Borrow in excess of federal loan limits. Receive a Stafford loan while participating in the SOAR program and receiving the Minority Education Enhancement Grant.

Borrowing Limits

The total combined amounts a student may borrow in subsidized and unsubsidized Stafford loans may not exceed the annual loan limits or aggregate limits, which are specified in federal regulations.

Annual Limits

Annual loan limits are determined by class standing (freshman, sophomore, etc.) and dependency status.

Class Credits Earned Freshman 01-29 Sophomore 30-59 Junior 60-89 Senior 90-120

Annual Limits for the 2007-2008 terms

Per Academic Year (Fall & Spring) Amounts Dependent Combined Subsidized/ Unsubsidized Freshman $3,500 Sophomore $4,500 Junior/ Senior $5,500 Independent Maximum Subsidized Additional Unsubsidized Combined Subsidized & Unsubsidized Freshman $3,500 $4,000 = $7,500 Sophomore $4,500 $4,000 = $8,500 Junior/ Senior $5,500 $5,000 = $10,500 Graduate $8,500 $12,000 = $20,500

*Certificate program students are only eligible for Stafford loans if they are pursuing the Teacher Certification Program for which they have an approved Statement of Eligibility from the Florida Department of Education.

Per Semester Amounts Dependent Combined Subsidized/ Unsubsidized Freshman $1,750 Sophomore $2,250 Junior/ Senior $2,750 Independent Maximum Subsidized Additional Unsubsidized Combined Subsidized & Unsubsidized Freshman $1,750 $2,000 = $3,750 Sophomore $2,250 $2,000 = $4,250 Junior/ Senior $2,750 $2,500 = $5,250 Graduate $4,250 $6,000 = $10,250

Aggregate Limit

• The cumulative amount that a student can borrow through the years is called the aggregate limit.
• A student who exceeds the aggregate loan limit is ineligible to receive any Title IV funding, including the Federal Pell Grant.
• Teacher Certification Program students have the same aggregate limits as undergraduate students.
• Please note that the graduate aggregate limits include any loan amount borrowed during undergraduate study.
• To view your loan history, visit the National Student Loan Data System(NSLDS) Web site.

	Dependent Undergraduate	Independent Undergraduate	Graduate (includes Undergrad Amount)
Maximum Subsidized	23,000	23,000	65,500
Combined Subsidized/Unsubsidized	23,000	46,000	138,500

1. File the FAFSA for the current aid year.

2. Complete and submit the Federal Stafford Loan Request Form.
If a chosen lender is not on the UCF Preferred Lender List, email finaid@mail.ucf.edu to obtain the proper form. It is the student’s responsibility to research the guarantee agency, lender code and contact information of lenders NOT on the UCF Preferred Lender List.

3. First time borrowers must complete the online Entrance Interview.

4. Complete all outstanding checklist items on MyUCF To Do List. Verification must be completed before the loan can be awarded.

5. Once the loan has been certified, borrowers will receive e-mail notification with instructions on how to complete the Master Promissory Note (MPN).
(Some students may receive the notification via U.S. mail.)

Any outstanding debts owed to the university will be deducted prior to processing a refund.

Once the school receives the loan money, all compliances are checked again to ensure that the borrower is still eligible for the amount awarded. The school may reduce or cancel the loan accordingly.

Some checklist items may be added to the MyUCF Financial Aid To Do List after the loan is awarded. Check your MyUCF account frequently and complete all outstanding items.

If a chosen lender is not on the UCF Preferred Lender List nor guaranteed by the State of Florida, a manual process is involved, which will delay your funds. Another means of funding is recommended until the loan is available. It will be the student’s responsibility to ensure that the lender receives the necessary documentation to process the loan.