Federal Family Education Loan Program

Subsidized Stafford Loans
This is a need based loan and eligibility is determined by the Financial Aid Office.  Interest is paid by the federal government while you are enrolled at least half-time and during the six month grace period after leaving school.  The interest rate is variable and capped at 8.25%.

Unsubsidized Stafford Loans
This loan is based on the cost of attendance.  You are responsible for interest payments during your in-school, grace and deferment periods.  Future payments are based on both the principal (original amounts borrowed) plus any capitalized interest.  Principal payments can be postponed, however, interest will be "capitalized" meaning that the lender will add the accrued interest to the principal balance you owe.  At repayment time, the amount you owe will be increased by the interest added.  The interest rate is variable and capped at 8.25%.

Federal Stafford Loans: Electronic Funds Transfer
Many returning students will agree that electronic funds transfer (EFT) has simplified borrowing under the Federal Family Education Loan Programs. Formally, students were required to report to the Finanical Aid Office every quarter to sign checks. Effective Spring Quarter 1996, Stafford Loan funds for all students borrowing through the Great Lakes Higher Education Corporation will be electronically transfered to their student accounts.

Electronic funds transfer is attractive to students not only for the convenience of not having to sign checks, but also for its speed. Electronic funds arrive after the close of day, on the date published on your disclosure statement. The funds are available to be used on campus the next day to pay tuition and to buy books.

The earliest Stafford Loan funds can be sent to the college is 10 days before the start of each quarter. Therefore, if you are depending on a Stafford Loan to pay your tuition, you will not be deleted from your classes. The Financial Aid Office will set up an open account on your behalf until the funds are received. When the funds have been transferred, you will receive a new schedule through the mail indicating the new balance. If there is still a balance due, that amount must be paid to the Cashier. Stafford Loan borrowers with remaining tuition balances may obtain a late fee waiver from the Financial Aid Office.

First-time Borrower Requirements

Pre-loan Counseling All new borrowers must attend a mandatory entrance interview prior to receiving loan funds. Entrance interviews will be done in group sessions for Stafford Loan borrowers. Group sessions will be scheduled Monday through Thursday at various times during the day. Check with the Financial Aid Office for the place and time. For students who cannot meet the scheduled dates and times, Entrance counseling may be done on a personal computer using the internet. Lakeland participates in the following on-line counseling programs:
 
• Mapping Your Future
• Entrance Counseling
• Student Loan Funding
• Entrance Counseling

Exit Interviews
All student loan borrowers are required to attend an exit interview. Exit interviews will be held every term, two weeks before final exams. Please plan to attend an exit interview during your last term of enrollment.  Check with the Financial Aid Office for the place and time. For students who cannot meet the scheduled dates and times, Exit counseling may be done on a personal computer using the internet. Lakeland participates in the following on-line counseling programs:

• Mapping Your Future 
• Exit Counseling

• Student Loan Funding
• Exit Counseling

Note to Graduating Students: Exit interviews are mandatory for all Stafford loan borrowers. Therefore, Lakeland will hold diplomas until exit counseling has been completed.

Other Loan Information

• Default Management  Students meeting the following conditions will be asked to complete additional paperwork before a loan can be processed.

1. Less than a 2.0 grade point average by the end of three terms of attendance
2. $10,000 borrowed at Lakeland and all previous colleges combined
3. Below the minimum requirements listed in the Standards of Academic Progress Policy
4. Previously defaulted on a federal student loan.

• Attendance Reports In order to comply with federal regulations regarding the disbursement of Federal Family Education Loan Program funds, Stafford loan borrowers must submit an Attendance Report within 10 days from the date loan funds are received by the school. If the borrower does not meet this requirement, Stafford loan funds are returned to the lender. If the student later submits the attendance report, he or she must reapply for the loan.  (For more on attendance reports, see Attendance Report Procedures.)