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Save Up To 2.25% on Federal Stafford Loan Interest

Get an automatic .25% interest rate reduction when you enter repayment just by signing up for our electronic loan payment withdrawal program!
Then receive an additional 2.0% interest rate reduction just for making your first 48 consecutive loan payments on time!

Subsidized & Unsubsidized Stafford Overview

The Federal Stafford Loan program is a set of need based and non-need based loans which are availalble to undergraduate and graduate students.

  • There are two types of Federal Stafford Loans: Subsidized and Unsubsidized.

  • The Federal government pays the interest on subsidized loans, which are need based, as long as you are enrolled at least half-time and during certain other authorized periods.
  • The government does not pay interest during these periods for unsubsidized loans which are not based on financial need.
  • It is common for borrowers to receive a combination of both subsidized and unsubsidized loans

Subsidized Stafford

  • Variable low-interest rate loan1
  • Up to 10-year repayment term2
  • Student must be U.S. citizen or permanent resident, enrolled at least half-time and demonstrate financial need
  • Applicant must file a FAFSA
  • Interest is paid by federal government until student graduates or drops below half-time status
  • Interest rate reduced by 2.0% after first 48 monthly payments. To qualify, all payments must be made on time
  • Additional .25% interest rate reduction with participation in electronic loan payment withdrawal program

Annual Borrowing Limits:

  • $2,626 for freshmen
  • $3,500 for sophomores
  • $5,500 for juniors and seniors
  • $8,500 for graduates

Aggregate Borrowing Limits:

  • $23,000 for dependent undergraduates
  • $46,000 for independent undergraduates
  • $138,500 for graduates

Fees:

  • Up to 3% Origination Fee
  • Up to 1% Guarantee Fee (Note: 0% Guarantee Fee through NYHESC)
1The interest rate is based on the bond-equivalent rate for 91-day Treasury bills established at the final auction held prior to June 1, and is reset each July 1. Rates effective July 1/2001 to June 30, 2002 : 5.39% in-school; 5.99% in-repayment. 2Monthly principal and interest payments begin six months after graduation or status drops below half-time.

Unsubsidized Stafford

  • Variable, low-interest rate loan1 not based on financial need
  • Up to 10-year repayment term2
  • Student must be U.S. citizen or permanent resident and enrolled at least half-time
  • Student is responsible for interest accrued while in school
  • Option to defer payments of principal and interest until graduation (or until student drops below half-time status)
  • Interest rate reduced by 2.0% after first 48 monthly payments. To qualify, all payments must be made on time
  • Additional .25% interest rate reduction with participation in electronic loan payment withdrawal program

Annual Borrowing Limits (combined subsidized and unsubsidized):

  • $6,625 for freshmen
  • $7,500 for sophomores
  • $10,500 for juniors and seniors
  • $18,500 for graduates

Aggregate Borrowing Limits:

  • $23,000 for dependent undergraduates
  • $46,000 for independent undergraduates
  • $138,500 for graduates

Fees:

  • Up to 3% Origination Fee
  • Up to 1% Guarantee Fee (Note: 0% Guarantee Fee through NYHESC)
1The interest rate is based on the bond-equivalent rate for 91-day Treasury bills established at the final auction held prior to June 1, and is reset each July 1. Rates effective July 1/2001 to June 30, 2002 : 5.39% in-school; 5.99% in-repayment.
2Monthly payments may be deferred until six months after graduation. How do I apply for a Stafford Loan? At Fredonia, the first step in applying is completion of the Free Application for Federal Student Aid (FAFSA) with Fredonia listed in the school release section. When Fredonia receives the results of the FAFSA, your Stafford Loan eligibility is electronically transmited to New York State Higher Education Services Corporation (if you have not accepted this loan on-line through "Your Connection" or if you are selected by Federal Edits for verification, your eligibility is not sent until you accept it and/or verification has been completed).

FIRST TIME STAFFORD LOAN BORROWERS: The Federal Stafford Loan Electronic Master Promissory Note (e-MPN) will be available on-line from New York State Higher Education Services Corporation (NYSHESC). The Master Promissory Note is the only loan application you will need to complete for your Federal Subsidized/Unsubsidized Stafford Loan while you are enrolled at SUNY Fredonia. Expect to receive an insert with instructions to complete your e-MPN in June, 2003 for the 2003-2004 academic year. Your Federal PIN will serve as your electronic signature for your eMPN. If you don't have a Federal PIN go to www.pin.ed.gov to apply.

RETURNING STAFFORD LOAN BORROWERS: You will NOT receive a Federal Stafford Master Promissory Note!!! It is very important for you to remember that the Stafford Loan estimated amounts shown on your Financial Aid Award Letter indicate your maximum Stafford Loan eligibility.

If you have never applied for a Stafford Loan before, please choose Fleet Bank as your lender.        Lender Code = 831495
       Fleet Bank
       ACS Origination
       PO Box 7050
       Utica, NY 13504-7050
       800-835-1161 How will I receive the loan funds?

For each loan, there are two disbursements. Your loan proceeds from Fleet Bank will be received electronically at Fredonia for loans disbursed through "Electronic Funds Transfer" (EFT). The EFT authorization item on the loan application should be marked "YES", as this will allow Fleet Bank to electronically transfer the funds to Fredonia. Once received, the loan proceeds are credited to your student account, and confirmation of that transaction will be sent to you.

Any refund that you are expecting as a result of your Stafford Loan exceeding your charges each semester will be issued to you after your student account is paid. Please contact the Office of Student Accounts, 3rd Floor Maytum Hall, 673-3236, for the dates when these refunds will be available each semester.

If you're a first-year undergraduate student and a first-time borrower, as per Federal Regulations, Fredonia cannot disburse your first payment until 30 days after the first day of your enrollment period. This way, you won't have to repay the loan if you don't begin classes, or if you withdraw during the first 30 days of classes. You must also complete Entrance Counseling before funds can be credited to the student account.  

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Page modified 1/8/08