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Financial Aid - Educational LoansFederal Stafford LoansThe Pitzer College Financial Aid Office recognizes that financing a Pitzer education may involve deferring some of the cost through a low-interest loan program. Your educational investment will require informed financial decisions about loans. We are committed to helping you understand your federal loan eligibility and options. We have designed this guide to provide information about the Master Promissory Note, the Subsidized Federal Stafford Loan and the Unsubsidized Federal Stafford Loan offered through the Federal Family Education Loan Program (FFELP). If you have been awarded a Federal Stafford Loan as part of your financial aid package, you may choose to accept the full amount of the loan offered, decrease it or decline it. If you choose to decrease or decline the Federal Stafford Loan in your package, no compensation can be made in either grant or employment allotments. Types of Federal Stafford LoansSubsidized Stafford Loan: This is a need-based loan. The interest rate on this loan is fixed at 6% and the federal government pays the interest while you are enrolled at least half time. There is a six-month grace period after your last date of at least half-time enrollment before you begin repayment on the loan. Unsubsidized Stafford Loan: This is a non-need based loan with terms similar to the Subsidized Stafford Loan with one major exception: you are responsible for all the interest payments. The interest rate on this loan is fixed at 6.8%. You may pay the interest while you are enrolled or allow it to accrue and be capitalized. How Much Can I Borrow?Annual loan limits for subsidized Federal Stafford Loans are $3,500 for first year, $4,500 for sophomores, and $5,500 for juniors and seniors. In addition, a dependent undergraduate may borrow up to $2,000 each year in an unsubsidized loan. Students whose parents are denied a PLUS Loan or independent students may be eligible to borrow additional funds through the Unsubsidized Federal Stafford Loan program. Limits are $6,000 for first or second year students and $7,000 for students in their third or fourth years. Total Federal Stafford Loan indebtedness for undergraduate students may not exceed $31,000. Loan FeesFederal Stafford Loans are subject to a 1.00% origination fee and a default fee of up to 1.00%. Both fees are deducted from the loan proceeds prior to disbursement of funds; borrowers are responsible for payment of all such fees. Loan Entrance InterviewFederal regulations require that a student borrowing a Federal Stafford Loan for the first time at a school attend an Entrance Interview session, either in-person or on-line, even if he/she has attended one at a previous school, prior to receiving any federal monies. Master Promissory NoteThe Federal Stafford Loan Master Promissory Note allows you to borrow Subsidized and/or Unsubsidized Stafford Loans for your entire college career by signing only one note. It can be used for a single period of enrollment (one academic year) or for multiple periods (such as your first through senior years). This note is valid for up to ten years from the original date of signature. It is very important that you understand the long-term commitment you are making by signing this note. We encourage you to record all amounts that you borrow and keep all of your loan paperwork together so you can keep track of your cumulative borrowing. Selecting a LenderChoosing a lender is an important decision, one that will affect you for the life of your loan. If you have no prior Federal Stafford Loans, we recommend you borrow from one of the lenders listed. These lenders have provided excellent service, competitive borrower benefits, and reliability to Pitzer students and parents. We provide this list to assist you in your selection, but you may choose any participating lender you wish. If you have previously borrowed a Federal Stafford Loan, we recommend that you remain with the same lender. Please note that neither Pitzer College nor any of its employees receive benefits of any kind from any lender in exchange for being included on this list of preferred lenders. To view a list of Pitzer College’s preferred lender list, click here. How and When Do I Get My Loan Money?Loan funds are disbursed in two equal installments, normally once each semester. These funds will be received by the school electronically, or in a check made co-payable to the student and the school. You must be enrolled on at least a half-time basis (two courses) when the loan is disbursed to be eligible to receive the funds. Your Federal Stafford Loan funds will be credited to your student account and will reduce the amount you owe the school. How and When Do I Get My Loan Money?Loan funds are disbursed in two equal installments, normally once each semester. These funds will be received by the school electronically, or in a check made co-payable to the student and the school. You must be enrolled on at least a half-time basis (two courses) when the loan is disbursed to be eligible to receive the funds. Your Federal Stafford Loan funds will be credited to your student account and will reduce the amount you owe the school. When Do I Have to Pay Back My Loan?Repayment on Federal Stafford Loans begins six months after graduation from Pitzer, or if you cease to be at least a half-time student. Normally, you will have ten years to repay your loan. Under certain circumstances you may defer (postpone) repayment. Common deferments include: full-time enrollment at an eligible school or approved graduate fellowship program, conscientiously seeking but unable to find full-time employment, or economic hardship as determined by federal law. If you are unable to make your scheduled loan payments because of illness or financial hardship, your lender may grant you a forbearance. Forbearance allows you to reduce your payment amount, extend the time for making payments, or temporarily stop making payments. Click here to view a sample Federal Stafford Load repayment chart. Steps to Applying for a Federal Stafford LoanNew Borrowers Only
Students Who Have Previously Borrowed a Federal Stafford Loan
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