South Puget Sound Community College

The Federal Stafford Loan

Loans must be paid back. South Puget Sound Community College participates in the Federal Stafford Loan Program. There are two types of Stafford Loan for which you may be considered:

• The Subsidized Stafford Loan is based on financial need. The government subsidizes, or pays, the interest for you while you are enrolled at least half-time (6 credits) in an eligible degree-seeking program. Interest begins accruing, at a fixed 6.8%, 6 months after you graduate or cease enrollment. At this time your loan repayment also begins.
• The Unsubsidized Stafford Loan is available if you are not eligible for the subsidized loan. This loan is not need-based, but it gains interest at the fixed 6.8% as soon as you receive the loan funds. You also have 6 months once you graduate or cease half-time attendance before you must begin repayment.

Before Applying

You need to, first, complete the Free Application for Federal Student Aid (FAFSA), submit the SPSCC Data Sheet to the Financial Aid Office, and turn in any other documentation required by the Financial Aid Office. Once your file is complete, a review of all documentation is performed by the Financial Aid Office to determine your eligibility. A letter of eligibility is then sent to you. After you receive this written notification you may pursue a Stafford Loan if you need additional assistance with educational costs.

How to Apply for and Receive the Loan

If you are applying for your first Stafford Loan at South Puget Sound Community College – you must complete Stafford Loan Entrance Counseling by attending a live presentation on campus (Click here for the presentation schedule) or by completing the online version called EdTest. The entrance counseling is designed to educate you about the loan process and your rights and responsibilities pertaining to the Federal Stafford Loan.

After completing the Entrance Counseling, you may submit a Loan Request Form to the Financial Aid Office. You may pick the form up at the Financial Aid Office. On the Loan Request Form you will indicate how much you need to borrow and through which lender you wish to borrow the loan.

Below is South Puget Sound Community College’s Lender List. We have selected the following institutions after analyzing the quality of their products and services. You do, however, have the right to borrow through any lender that participates in the Federal Stafford Loan Program. Furthermore, we encourage you to research the benefits offered by any lender and choose one that will best serve your needs.

South Puget Sound Community College's Lender List

After submitting the Loan Request Form, the Financial Aid Office determines your eligibility for the amount you requested. An award letter is then sent to you (usually within 5-7 business days) - indicating the amount of the loan you will receive and for which quarters of enrollment you will be receiving disbursements of the loan. You must sign and return the award letter to the Financial Aid Office if you approve the loan as specified in the letter.

1-2 business days after submitting your signed award letter you may go online and complete your Master Promissory Note (MPN) here. After submitting your electronic MPN, allow at least 7-10 business days for your loan to be processed, disbursed and prepared for your pick up in the form of a check. (If you would prefer to complete a paper MPN you may request one at the Financial Aid Office – however, processing time will be increased). If you apply for the loan well in advance of the quarter specified on your Loan Request Form, the funds will not be available until the first day of the quarter. You may check online to see when your loan check is available to you.

• After the first disbursement of the loan, subsequent disbursements within the same academic year will be available on the first day of each quarter as indicated on the award letter.

In order to pick up your loan check, just as with any financial aid check, you must submit an Attendance Verification Form with current signatures from your professors – dated within 7 days of submitting the form.

When You Leave The College

When you graduate or cease attending at least half-time at South Puget Sound Community College, you must complete Stafford Loan EXIT Counseling. The Exit Counseling session reviews the terms and conditions of your loan, provides an overview of the loan process, and assists you in planning for the upcoming repayment of your loan. You may fulfill this requirement by attending a short presentation on campus or by completing an Exit Exam online through EDTEST.

Borrowing Limits

Annual Limits 2007/2008

Lifetime/Aggregate Limits

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