Federal Loan Frequently Asked Questions
Frequently Asked Questions:
Why do I have to repay a Federal Stafford Loan?
Unlike grants and scholarships, loans are loans, not gifts, and must be repaid.
What are Loan Fees?
The federal government charges up to a 3% loan origination fee and the guarantor may charge an insurance premium of up to 1% on your loan. These fees may be deducted from your loan proceeds by the lender prior to disbursement.Is my loan affected by my grades?
Yes. If your cummulative GPA falls below a 2.0 any time during the loan period you may no longer be eligible to receive student loans. All aspects of SAP will be measured before each loan distribution. If you do not meet the minimum standard, you will lose both your second loan disbursement as well as any remaining grants.What is the minimum number of hours for which I have to be enrolled to receive a Federal Stafford Loan?
If you drop below six (6) credit hours, any portion of your loan that has not been released to you may be cancelled and the lender notified that you are no longer enrolled at least half time.
Can I get the loan disbursement before classes start?
No. The earliest your loan can be released is the 30th day after the start of classes for each semester. If multiple disbursements are required, the second disbursement will be released after the midpoint of the semester has passed. Your funds can not be released any earlier.Will loans pay for my classes?
Yes, loan funds in an Active (A) status on your My Records account will hold your class schedule. However, no book vouchers are available from loan funds.