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Student Loan Programs
Contents:
See Also:
Federal Stafford Loan
Most students who are US citizens or permanent residents may
participate in the Federal Stafford Loan program. If you have
received a notice of financial aid eligibility from Macalester, it may
include a Federal Stafford Loan. The maximum amount you may apply
for is determined by your undergraduate grade level:
| Dependent Student Federal Stafford Loan Annual Limits |
Base Eligibility1 |
Additional Unsubsidized Eligibility2 |
Total Stafford Loan Eligibility3 |
| Freshman |
$3,500 |
$2,000 |
$5,500 |
| Sophomore |
$4,500 |
$2,000 |
$6,500 |
| Junior |
$5,500 |
$2,000 |
$7,500 |
| Senior |
$5,500 |
$2,000 |
$7,500 |
1 Eligibility for subsidy on the base amount is determined by the results of the FAFSA.
2 Additional Unsubsidized Federal Stafford Loan eligibility applies to loans made after July 1, 2008.
3 The total amount of Stafford Loan is limited to cost of attendance minus other financial aid. |
Terms of Federal Stafford Loans:
- You must apply for financial aid.
- No credit check is required.
- Loan is made to you (the student).
- Interest rate is fixed for all
Federal Stafford Loan made after July 1, 2006. The interest rate
is set at the time that the loan is taken and persists for the life of
the loan.
| First Disbursement of a loan made during: |
Subsidized Stafford Loans |
Unsubsidized Stafford Loans |
| 2008-2009 |
6.0 percent |
6.8 percent |
| 2009-2010 |
5.6 percent |
6.8 percent |
| 2010-2011 |
4.5 percent |
6.8 percent |
| 2011-2012 |
3.4 percent |
6.8 percent |
- Standard repayment period is ten years.
- Minimum monthly payment is $50.
- Loan
fee: 2% of the loan amount minus a loan fee rebate of 1.5% (for
each $100 that you borrow, you will receive $99.5 to use for your
educational costs). The fee rebate is made in anticipation of 12
on-time payments at the time the you enter repayment.
If you do not make 12 on-time payments when you enter the
repayment period, the amount of the loan fee rebate will be added to
your principal balance.
More information about Federal Stafford Loans is available on the Department of Education web site.
Subsidized vs. Unsubsidized Federal Stafford Loans
If you have received a notification of aid eligibility that includes a
Federal Stafford Loan, it specifies whether you are eligible for a
Federal Subsidized Stafford Loan or a Federal Unsubsidized Stafford
Loan.
If you are eligible for a Federal Subsidized Stafford Loan:
- The interest on your loan will be paid by the federal government while you are enrolled at least half-time.
- No payment is required while your are in
school. Your payments will begin six months after you graduate or
leave Macalester.
If you are eligible for a Federal Unsubsidized Stafford Loan:
- Interest will accrue beginning with the date you receive the loan.
- You may choose to pay the interest only or capitalize the interest until six months after your graduate or leave Macalester.
Accepting/Requesting a Federal Stafford Loan
If you have not already done so, you must also complete
a Free Application for Federal Student Aid to receive a Federal
Stafford Loan. Visit the apply for financial aid page for more information.
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Beginning with the 2008-2009
academic year, Macalester will participate in the Federal Direct Student Loan
program. All students who wish to borrow
a Federal Stafford Loan must follow the instructions below, regardless of
whether they have previously participated in the Federal Stafford Loan program. For more information about our change to
Direct Student Loans and for links to the steps below, visit www.macalester.edu/financialaid.
You may complete the three steps below in any order, provided that you have already filed your 2008-2009
FAFSA. Even if you have not yet received
a notice of financial aid eligibility, you should complete steps 2 and 3 now if
you anticipate that you will need a Federal Stafford Loan for 2008-2009.
To receive the most accurate
fall semester billing statement possible, you
must complete the three steps below before billing statements are prepared in mid-July,
2008.
Step One: Request
all or part of your Federal Stafford Loan.
- Log in to 1600grand.
- Navigate to your financial aid award for 2008-2009 (Student Life Tab, Financial Aid Awards channel).
- Decide how much of your Federal Stafford Loan you wish to take and follow the on-screen instructions.
- Click the Submit Decision button.
Step Two: Complete a Master Promissory Note (MPN)
Visit the Direct Loan MPN site to complete your MPN.
- You may sign your MPN online by using your Department of Education PIN (the same PIN that you used to sign the FAFSA).
- If you do not have a Department of Education PIN, you may obtain one by visiting pin.ed.gov.
- If you have not already done so, you must file your FAFSA prior to completing your MPN.
Please note:
- If you completed a Federal Stafford Loan MPN prior to 2008-2009, it is no longer valid for Stafford Loans at Macalester. You must complete a new Direct Loan MPN.
- Your Federal Stafford Loan cannot be delivered until after you have completed a MPN.
- Macalester will receive notification when your MPN is complete.
For assistance with your MPN, call 800-557-7394.
Step Three: Complete Direct Loan Entrance Counseling
Please note: if you completed entrance counseling in a year prior to 2008-2009, you must still complete Direct Loan Entrance Counseling to receive a 2008-2009 Federal Stafford Loan.
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Federal Perkins Loans
Some financial aid packages include Federal Perkins Loans. The
amount you are eligible for is determined by Macalester. Perkins
Loans are originated and administered by Macalester. Promissory
notes and other necessary documents will be provided near the beginning
of each academic year.
You must complete entrance counseling before you may receive a Federal
Perkins Loan. Macalester's Loan Office will contact you about
completing Perkins entrance counseling.
- No credit check is required.
- Loan is made to you (the student).
- No payments are required while half-time enrollment is maintained.
- Payments begin nine months following graduation or withdrawal from Macalester.
- No interest accrues while you are enrolled.
- Interest rate during repayment is fixed at 5%.
- Standard repayment period is ten years.
- Minimum monthly payment is $40.
- Visit the Department of Education Student Aid web site for more information about Federal Perkins Loans.
Minnesota Student Education Loan Fund (SELF)
- Available to all students attending Macalester, regardless of permanent address.
- Requires a credit-worthy cosigner who is a US citizen or permanent resident with a U.S. address.
- Maximum loan amount = $7,500 per year.
- Interest rate is variable. Click here for information about the interest rate.
- There are no loan processing fees.
- Repayment of interest begins 90 days after loan is
received; repayment of principal begins 13 months after graduation or
dropping below half-time enrollment.
- Apply online for a SELF loan.
- Contact the Financial Aid Office or visit www.selfloan.org for more information.
Alternative Student Loans
Alternative student loans are available from private lending sources to
provide a funding mechanism for the family's expected
contribution. Many banks offer this type of loan. We
encourage you to consider Federal Stafford, Minnesota SELF, and Federal
PLUS Loans before choosing an alternative student loan.
There are many ways to identify alternative loan
sources. Macalester does not endorse or suggest any lending
institution. Potential sources of information on alternative
loans are shown below:
Tools for calculating monthly payments and other loan costs are available at Finaid.org.
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