Federal Stafford Loans
What is a Federal Stafford Loan?
Through the Department of Education, students may qualify for Federal Stafford Loans by completing the Free Application for Federal Student Aid (FAFSA). Federal Stafford Loans are available to all dependent and independent undergraduate students (a student's dependency status is determined from information listed on the Free Application for Federal Student Aid, FAFSA) to help pay for their education. There are different Annual Loan Limits that a student can borrow depending on their grade level and dependency status. Federal Stafford Loans are borrowed by a student and do not require a credit check or prior credit history. The Federal Stafford Loans offer:
- Repayment begins after the one-time 6 month grace period. The grace period begins when a student graduates, leaves school, or drops to less than half-time enrollment, which is 6 credit hours at Metro State.
- The fixed interest rate of 6.8% for all Federal Stafford Loans disbursed after July 1, 2006.
- Federal Stafford Loans disbursed prior to July 1, 2006 will have a variable interest rate while the student is in school and during repayment. Please contact your Guarantor for the current rate.
Subsidized
Federal Stafford Loan
Eligibility
for the Subsidized Federal Stafford Loan is based on your need as
determined by the Office of Financial Aid using your FAFSA and Cost
of Attendance. If you qualify, the federal government will pay
(subsidize) your interest while you are in school and during your
6 month grace period. Interest will not begin to accrue until repayment
begins. If you do not qualify for Subsidized Stafford Loans you may
qualify for Unsubsidized Loans.
Please see Federal Stafford Loan (FFELP) eligibility
and regulations for additional eligibility
requirements.
Unsubsidized
Federal Stafford Loan
Unsubsidized
Loans are not based on financial aid need and are available to all
eligible students. The Office of Financial Aid uses your FAFSA and
Cost of Attendance
to determine the amount of unsubsidized loan for which you qualify.
You are responsible for the interest on your unsubsidized loan from
the time the loan is disbursed until it is paid in full. You can choose
to pay the interest monthly or to have it capitalized (interest added
to the principle) against loans borrowed. If your interest is capitalized,
it will increase the amount you have to repay. If you choose to pay
the interest as it accumulates, you must contact your Guarantor to
make interest payment arrangements. Please see Federal
Stafford Loan (FFELP) eligibility and regulations
for additional eligibility requirements.
NOTE: The standard Federal Stafford Loan interest rate effective July 1, 2006 is a fixed rate at 6.8% for in-school, grace, deferment, repayment, and forbearance periods.
Federal Stafford Loans Eligibility and Regulations
The lender and regulations that the Office of Financial Aid determines for Federal Stafford Loans are as follows:
- Student must be enrolled in a minimum of 6 credit hours (half-time status) and be enrolled in a degree-seeking program.
- Student must be making the Office of Financial Aid's Satisfactory Academic Progress(SAP).
- Student must have a complete financial aid file that includes having a Free Application for Federal Student Aid (FAFSA) on file.
- Student must complete an Entrance Interview at http://mappingyourfuture.org.
- The Office of Financial Aid determines the loan type and amount of eligibility for Federal Stafford Loans. The loan amounts and types are based on information from the FAFSA and can never exceed the federal annual loan limits or the student's cost of attendance (financial aid budget).
- If you borrow from the Metro State Lender List the loans are transmitted electronically to College Assist. The funds are also received electronically once they have been guaranteed.
- There are Federal Stafford Loan Limits regarding the amount a student can borrow based on a student's dependency status (based on FAFSA regulations) and by class status (grade level).
- Students should complete a loan Exit Counseling session before graduation, at http://mappingyourfuture.org.
Applying for a Federal Stafford Loan
Step 1. Complete the Free Application For Federal Student Aid (FAFSA) at www.fafsa.ed.gov. To have your FAFSA sent to the Office of Financial Aid at Metro State, include the Metro State Title IV School Code of 001360 on your FAFSA. When the Office of Financial Aid receives your FAFSA, you will be notified through your MetroConnect email account, if we need additional information. If we are requesting any additional information, please submit it as soon as possible. Once your financial aid file is complete and have met loan eligibility requirements, you will receive an Award Notice via your MetroConnect email account that includes your offered Federal Stafford Loan eligibility.
Step 2. Complete an Entrance Interview. If this is the first Federal Stafford Loan that you are requesting at Metro State, you will need to complete an Entrance Interview before you can receive your loan funds (disbursements). You may complete the Entrance Interview online at http://mappingyourfuture.org. You will only complete the Entrance Interview the first time you borrow a Federal Stafford Loan at Metro State.
Step 3. To initiate your request for a Federal Stafford Loan, please complete and submit the Federal Stafford Loan Acceptance Form (FSLA). This is available online or in our office. We recommend that you determine the total amount that you need and submit one FSLA for that total. You should only borrow what you need. You may want to consult a Financial Aid Counselor in our office regarding your loan eligibility. The final loan amount may be less than the amount requested. Your eligibility will be calculated by the Office of Financial Aid based upon a standardized cost of attendance (budget), your academic grade level at Metro State and the annual/lifetime maximum loan limits. If you choose a lender that is not on the Metro State Lender List, you will have to submit a paper loan application (FSLA) to the Office of Financial Aid. At this time, the electronic loan application can only be submitted for lenders on the Metro State Lender List.
Step 4. Complete a Master Promissory Note (MPN). Once your loan request has been processed by the Office of Financial Aid you may be contacted by your lender to complete the Federal Stafford Loan Master Promissory Note (MPN). If you choose a lender on our Metro State Lender List, you will be contacted by the College Assist via email to complete your MPN online with an Electronic Signature at https://www.studentloanonline.com. The online MPN is not available to complete until the Office of Financial Aid has processed and transmitted your loan to the College Assist. If you continue to borrow loans from the same lender, you will not be required to complete a new MPN as it is valid for 10 years.
Processing of a Federal Stafford Loan
Step 1. The Office of Financial Aid will determine if you are eligible for processing based on the following:
• Complete Financial Aid File
• Enrollment in a minimum of 6 credit hours
• Making the Office of Financial Aid's Satisfactory Academic Progress
• Annual/Aggregate Limits
Students who are not eligible for loans will receive an email in their MetroConnect email account notifying them of their situation.
Once your loan has been processed, you will be emailed a Loan Recommendation Letter via your MetroConnect email account. The Loan Recommendation Letter summarizes your loan amount for each specific loan processed based on your request. If you are a first-time borrower of Federal Stafford Loans at Metro State, the letter will also remind you of the Entrance Interview and Master Promissory Note requirements (Steps 2 and 3 of the loan process). If you are a first-time borrower, you will also be sent a reminder email to electronically sign your Master Promissory Note.
Step 2. Metro State requires all first-time borrowers to complete an Entrance Interview before you can receive your loan funds (disbursements). You may complete the Entrance Interview online at http://www.mappingyourfuture.org. Once you have completed the Entrance Interview, ASAP Union Bank will email the Entrance Interview confirmation to the Office of Financial Aid at Metro State.
Step 3. Once your loan request has been processed by the Office of Financial Aid, you may be contacted by your lender to complete the Federal Stafford Loan Master Promissory Note (MPN). If you are a first-time borrower, and you selected a lender on our Metro State Lender List, you will be contacted by College Assist via mail to complete your MPN online with an Electronic Signature.
All lenders require that a Master Promissory Note (MPN) is completed. With the serial feature of the MPN, now you only have to sign one MPN for your lender for all of your loans while attending Metro State or schools that use College Assist as a Guarantor. A new MPN is needed if you are changing lenders or if the previous MPN is invalid. The MPN states all Borrower Responsibilities regarding paying back your student loans. You must notify your lender of any and all of the following: 1) change in address, 2) name change, 3) if you drop below, at least, half-time enrollment status, 4) if you transfer to another school, and 5) when you graduate.
The MPN requires verification of contact information and two personal references. If you do not sign your MPN, your loan will not be guaranteed and the loan request will be automatically cancelled after 90 days by College Assist or cancelled with a written statement to our office.
Graduating Seniors. Per federal regulation, we must prorate the loan amounts of graduating seniors who are attending only one semester of an academic year. Please be aware that this federal regulation may affect the eligibility amount of your subsidized and/or unsubsidized Federal Stafford Loan. Prorating limits the amount of subsidized/unsubsidized loan a graduating senior can borrow as a fall only loan. It is best to submit a paper loan application (FSLA) to our office for the fastest and most accurate processing. For more information please see Proration Loan Limits. You may also download the informational form in a PDF version.
Exit Interviews.When you graduate or withdraw from Metro State, you are recommended to complete online Exit Counseling at http://www.mappingyourfuture.org. This will help you to review your borrower rights and responsibilities. These are the same borrower rights and responsibilities that you signed on your Master Promissory Note (MPN).
Disbursement of a Federal Stafford Loan
The Student Loan Recommendation email you receive details the amount, type, lender, and estimated dates of disbursement of funds. To receive your loan funds, your financial aid file must be complete, including the completion of your Entrance Interview and Master Promissory Note, before the school can receive or release any funds. You will also receive a guarantee notice from the Guarantor of the loan via mail. Please keep these documents for your records. Check with the Office of Financial Aid (Central Classroom Room 116, 303-556-8593) if your funds have not been applied to your account.
Remember - If your loan funds are guaranteed, they will not arrive at Metro State until you meet all loan eligibility requirements such as having a complete file (including Entrance and Satisfactory Academic Progress requirements) and having a minimum of 6 credit hours of enrollment for the loan period for which you are expecting funds. We cannot consider hours for which you are wait listed.
If your loan is submitted late in the semester and your funds are not received by the last day of the semester, we will be required to follow Late Disbursement regulations.
METRO STATE LENDERS
(as agreed with the Colorado
Servicing Consortium 
)
disburse funds via Electronic Funds Transfer (EFT). All loan funds
received via EFT will automatically be applied toward paying your
tuition and fees. If the amount of your disbursement is greater than
the amount of your tuition and fees, Metro
State Cashier’s Office will generate a refund check to be
mailed to you or for you to pick up at the Cashier’s Office,
CN 107 or 303-556-4745, beginning the first day of the semester.
NON-CONSORTIUM LENDERS (not on the Metro State Lender List) disburse funds via paper check from the lender. Once the Office of Financial Aid receives the funds, they will be delivered to the Cashier's Office to be applied to your student account. You will be notified of the loan funds arrival via phone and/or your MetroConnect email.
Late Disbursements (after semester ends). Any Federal Stafford or PLUS Loan funds received after the last day of the semester follow Prior Term Disbursement Regulations. Grades must post to your account to help determine your eligibility for your loan funds. You must have completed 6 credit hours with grades of D or better, have completed all the requirements requested of the file, and must be making Satisfacory Academic Progress with the Office of Financial Aid. Students who complete a late Master Promissory Note fall under these regulations.
You may request that your loan funds be cancelled or reduced after applying or receiving your Loan Recommendation Letter. You have 30 days after the loan period to make this request. You must submit a written statement to the Office of Financial Aid to cancel the loan. This may be faxed, mailed or dropped off in our office, and please be sure to include your 900 student ID number on all correspondence submitted to our office.
If you have received the loan funds and want to cancel or reduce the loan, you will be asked to return the cancelled or reduced loan funds from the refund (to the Cashier's Office) after submitting the statement to our office. To request any reductions or changes to your loans, you should complete a Financial Aid Loan Rejection Form (REJLON), which is available in our Financial Aid Forms Section of the Website.
Borrowing Limits for Federal Stafford Loans
Students are classified as Dependent or Independent by the Free Application for Federal Student Aid (FAFSA). The class levels are determined by the student's number of completed course hours. You may qualify for less than the yearly maximum amounts listed below if you receive other financial aid that is used to cover your Cost of Attendance. The offered loan amounts may be viewed on your MetroConnect account. You are not required to borrow the amount you are eligible to receive. The minimum loan request that we can process is $100.
Annual
Limits for Loans Disbursed after July 1, 2008 |
||
Annual
Loan Limits for Dependent Student |
||
Grade Level by Credits |
Subsidized
Maximum |
Total
(Subsidized and Unsubsidized) |
Freshman (0-29) |
$3,500 |
$5,500 |
Sophomore (30-59) |
$4,500 |
$6,500 |
Junior/Senior (60+) |
$5,500 |
$7,500 |
Annual
Loan Limits for Independent Students |
||
Grade Level by Credits |
Subsidized
Maximum |
Total
(Subsidized and Unsubsidized) |
Freshman (0-29) |
$3,500 |
$9,500 |
Sophomore (30-59) |
$4,500 |
$10,500 |
Junior/Senior (60+) |
$5,500 |
$12,500 |
Teacher Certification |
$5,500 |
$12,500 |
Lifetime Maximum Loan Limits |
||
Dependent students: |
Maximum SUB $23,000 |
$31,000 Total |
Independent Students: |
Maximum SUB $23,000 |
$57,500 Total |
Annual
Limits for Loans Disbursed before July 1, 2008 |
||
Annual
Loan Limits for Dependent Student |
||
Grade Level by Credits |
Subsidized
Maximum |
Total
(Subsidized and Unsubsidized) |
Freshman (0-29) |
$3,500 |
$3,500 |
Sophomore (30-59) |
$4,500 |
$4,500 |
Junior/Senior (60+) |
$5,500 |
$5,500 |
Annual
Loan Limits for Independent Students |
||
Grade Level by Credits |
Subsidized
Maximum |
Total
(Subsidized and Unsubsidized) |
Freshman (0-29) |
$3,500 |
$7,500 |
Sophomore (30-59) |
$4,500 |
$8,500 |
Junior/Senior (60+) |
$5,500 |
$10,500 |
Teacher Certification |
$5,500 |
$12,500 |
Lifetime Maximum Loan Limits |
||
Dependent students: |
Maximum SUB $23,000 |
$23,000 Total |
Independent Students: |
Maximum SUB $23,000 |
$46,000 Total |
(Dependent students whose parents are unable to borrow a PLUS loan are allowed to borrow as Independent students. Contact the Office of Financial Aid for further details.)
Undergraduate Aggregates (Borrowing Limits)
Dependent students are eligible to borrow $31,000, in a combination
of Subsidized and Unsubsidized Loans (with a maximum
of $23,000 in Subsidized Loans), while earning their
undergraduate degree.
Independent students are eligible to borrow $57,500 in a combination of Subsidized and Unsubsidized Loans (with a maximum of $23,000 in Subsidized Loans) while earning their undergraduate degree.
NOTE: Any student that has had a consolidation will have to have their Aggregate loan limits calculated by hand and have their file manually updated with accurate borrowed loan amounts. Any student that has borrowed graduate loans should submit a statement to the Office of Financial Aid asking us not to include them in the aggregate amounts that are reported by the National Student Loan Database System (NSLDS), www.nslds.ed.gov. Any graduate loans borrowed during the current academic year will be counted toward your annual Federal Stafford Loan limits. Students may visit the National Student Loan Database System, (NSLDS) to view their current loan history.
The lenders below provide rebates and repayment benefits. On the Federal Stafford Loan Acceptance Form (FSLA), you will need to write the 6 digit ID number for the bank you choose as your lender. It is the student's responsibility to choose a lender from which to borrow.
† indicates the lender participates in the Colorado LIFT (Loan Incentive for Teachers) - Colorado’s teacher loan repayment program. It provides help to teachers in high demand disciplines to repay student loans, up to $8,000. Please visit or call the Office of Financial Aid for a brochure.
| Lenders (Alphabetical Order) | Lender ID |
|---|---|
| ASAP Union Bank and Trust † ¥ www.asapubt.com |
803909 |
| Chase www.ChaseStudentLoans.com |
803000 |
| Citibank † ¥ www.StudentLoan.com |
826878 |
| College Invest † ¥ www.collegeinvest.org |
827866 |
| Hispanic Association of Colleges and Universities (HACU) † ¥ www.hacu.net |
833501 |
| US Bank † ¥ www.usbank.com |
801890 |
| Wells Fargo www.WellsFargo.com |
807176 |
If you would like to choose a lender not on the Metro State Lender List, please visit our office to proceed with your loan processing.