If you have been awarded a Federal Stafford Loan and your award package shows your eligibility, the following steps will help you complete the application process:

Step 1: Understanding Federal Stafford Loans

There are two types of Federal Stafford loans. Subsidized loans neither require repayment nor accrue interest while you are enrolled at least half time. Unsubsidized loans can be deferred while in school, but interest accrues to the borrower and must either be paid or capitalized.

Effective July 1, 2008, the interest rate is fixed at 6.0% for subsidized loans and 6.8% for unsubsidized loans. The standard maximum repayment term is 10 years with a $50 minimum monthly payment. Origination and Guarantee fees may be deducted from each disbursement unless your lender pays this on your behalf.

Step 2: Obtaining Your Loan

Decide which of these lenders  you wish to use. Review the fees, features, and discounts for these lenders to determine which may be right for you. Different products will have different advantages based on your current situation and your repayment strategy.

When you have selected a lender and click "Apply here" on the lenders page, you will begin your entrance counseling session and complete your Federal Stafford Master Promissory Note. This will take 20 – 30 minutes. Please have the following information ready:

• Your Federal Student Aid PIN
• Names and complete addresses of the two people you will use as personal references. One reference should be a parent or guardian if living. (References cannot have the same address.)
• Your driver's license number
• Your award letter showing how much you are eligible to borrow
• The amount you need to borrow for the academic year

Step 3: Follow-up

Upon graduation (or leaving school or entering less-than-half-time academic status), you will be required to complete loan exit counseling, which prepares you for transferring to another school or entering the repayment phase of your loan.