Federal Family Education Loan Program

The federal funding programs that are available to MSPP students under the Title IV Federal Family Education Loan Program are the Federal Stafford Student Loan Program and Graduate PLUS Loan Program. Stafford loans are either subsidized, for students who qualify based on need, or unsubsidized, for students who do not qualify (or qualify only partially) for a subsidized Stafford. Graduate PLUS loans are available to students who are U.S. citizens, and permanent residents and are credit worthy.

Matriculated students who are U.S. citizens or Permanent Residents, enrolled at least half-time (6 credits or more), making satisfactory academic progress, and not in default on former education loans are eligible to apply. Eligible students are encouraged to take full advantage of these loan programs, with the understanding that loans must be repaid. When borrowing, students should consider their ability to repay in relation both to their expected total debt and to their expected future earnings.

Because MSPP is required by federal regulation to verify income information provided on the FAFSA, students who apply for a Stafford loan and Graduate PLUS loans should be prepared to provide a signed copy of their 2007 Federal Income Tax Return, as well as copies of their w-2’s. Students who did not keep a copy of their tax return should request a duplicate from the Internal Revenue Service.

Please note that MSPP policy specifies that the primary responsibility for meeting educational costs rests with the student and the student’s family. Federal funds help bridge the gap between the cost of education and the family’s ability to pay.

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Loan Amounts

Stafford Loans
A student may borrow a maximum of $33,000 in subsidized/unsubsidized Federal Stafford Loans. To receive a subsidized Stafford Loan, the student must demonstrate financial need. Financial need and family contribution are calculated using the Free Application for Federal Student Aid (FAFSA). When a student receives a subsidized Stafford Loan, the total amount of the loan cannot exceed the student's demonstrated financial need up to a maximum of $8,500 per academic year. The aggregate limit for the Stafford Loan Program, (subsidized or unsubsidized) is $189,125, including any undergraduate borrowing. After June 30, 2006, the in-school Stafford Loan rate is 6.8% fixed.

PsyD: $33,000 combined sub and unsub is available per year, to a lifetime maximum of $189,125.

MA/CAGS & MA Counseling: $20,500 combined is available per year, up to a lifetime maximum of $138,500

*Respecialization (and MA/CAGS) students can borrow up to $18,500 annually to an aggregate of $138,500.

Graduate PLUS Loans
PsyD & MA/CAGS: pending a credit check, up to cost of your education, minus other financial aid.

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Need Analysis

For the purpose of Federal Stafford loans, a student’s financial need is defined as the difference between the 10-month cost of attendance and as determined by the Financial Aid Office the student’s 10-month expected family contribution (EFC). The EFC is calculated by the central processing agency based on information that is reported on the FAFSA; the EFC is reported to the student on the Student Aid Report.

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American Student Assistance (ASA)®

ASA is the oldest and one of the largest Federal Family Education Loan Program (FFELP) guaranty agencies in the United States. In its role as a national guarantor, ASA offers federal Stafford student loans. For over 40 years, we have helped 1.4 million students pursue their academic dreams by assisting them in successfully completing a program of education financing and repayment.

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Important Information Regarding Stafford Loans

• The Federal Stafford Loan is a loan and must be paid back.
• There is a 6-month grace period before repayment begins once the student is no longer enrolled at least half time in school.
• There are two types of Federal Stafford Loans, the Subsidized and Unsubsidized Federal Stafford Loans. Recipients of Federal Stafford Loans must be enrolled in school at least half time (6 credits).
  
  • Subsidized Loan - the government pays the loan interest while the student is in school
  • Unsubsidized Loan - the student pays the loan interest while the student is enrolled in school or the student can elect to have it capitalized once upon graduation.
• A student's receipt of financial aid is contingent upon the student making satisfactory academic progress. If a student fails to maintain satisfactory progress, financial aid will be suspended until it is attained.
• All students who apply for federal loans must complete a one time Entrance Review Form prior to their loan funds being dispersed. This form, which will be given to you during Fundamentals Week, provides information on your rights and responsibilities as a student borrower. You are also required to complete an Exit Interview Form when you leave the program.
• Your student loans will be disbursed electronically to MSPP. You will be notified when your funds arrive and refund checks will be made available within 14 days if, after all semester charges are met, there remains a credit balance on your account.
• You have the right to cancel all or part of your loan providing you inform the school in writing of your intent to do so prior to the funds being disbursed or within 14 days after receiving notification that your funds have been disbursed.
• The Department of Education determines the interest rate every May which remains in effect from 7/1 - 6/30. The current Fixed Stafford Loan rate for 7/1/06 - 6/3007 is 6.8%.
• You are encouraged to borrow conservatively since 31,000 for 4 years with interest accruing on the unsubsidized portion will become more than a $124,000 debt. It is especially important if you are still carrying a large undergraduate student loan debt, which will push these numbers even higher.

Updated 12/4/07