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Federal Stafford Loans

Federal Stafford Loans are student loans. They are awarded to the student in the student’s name, and it is the student's responsibility to repay the loan.Undergraduate and graduate students must be enrolled at least half time to be eligible.

There are two types of Stafford Loans – Subsidized and Unsubsidized.

A Subsidized loan is a loan in which the Federal Government subsidizes (pays) the interest for the borrower during the time that the student is enrolled in classes at least half-time and seeking a degree. Subsidized loans are “need based” which means the student must demonstrate need by completing the FAFSA, and the results must indicate the student has “need.” If that need is not met by scholarships and grants, the remainder of that need may be met with a Subsidized Stafford Loan. There is a limit to the amount a student may borrow in a Subsidized Stafford Loan each year based upon academic level (see the table below).

An Unsubsidized Loan is also a student loan; however, the government does not subsidize the interest for the student at any time. An Unsubsidized Loan is not “need based,” which means the student is not required to have remaining “need.” The student must complete the FAFSA, be enrolled in classes at least half time and must be degree-seeking. An Unsubsidized Loan may be borrowed to attain the remainder of the initial eligible loan amount that was not met by the Subsidized Loan. In some cases a student may borrow additional Unsubsidized Loan funds, especially if the student is Independent, or if a Dependent student’s parents have been denied a Parent PLUS Loan.

Students may be awarded Stafford Loans each year they complete a FAFSA and are determined to be eligible. The student must accept or decline the loans that are offered. Students may accept a partial amount in writing, by making changes to the Award Notice or contacting their financial aid counselor.

An origination fee may be assessed by the federal government at the time of disbursement.

You must review your financial aid award on SEANET and accept the loan funds. Your initial award will include a Federal Direct Stafford Loan. You may accept the full value of the loan, or contact our office in writing to request a lesser amount.

The MPN needs to be signed only once and is valid for 10 years. Students must sign a Stafford MPN for all Stafford loans borrowed at UNCW.

All Stafford loan borrowers are required to complete loan entrance counseling. This Federal requirement ensures that you understand your rights and responsibilities as a student loan borrower.

To complete the MPN and entrance counseling, log into www.studentloans.gov using your name, Social Security number and four digit Federal PIN number and “Complete MPN” and “Complete Entrance Counseling”.

It may be possible to cancel a portion of the Stafford Loan through service as a teacher in a designated school. Refer to the U.S. Department of Education Student Guide for more information.

Receiving your loan funds:

After you have completed the MPN, UNCW finalizes the loan process and your loan is scheduled for disbursement. If your loan is for the full academic year, it will be disbursed in two equal disbursements – one at the beginning of fall semester and one at the beginning of spring semester. Because you must be enrolled to receive a Federal Stafford Loan, your loan funds are credited to your student account in the UNCW Cashier’s Office. Your loan funds first offset any outstanding charges you owe to the university for the semester. After your charges are paid in full, a refund of any excess loan proceeds is provided to you. If all processes are complete, this disbursement and refund process can take place during the first week of each semester. Any incomplete paperwork or processing may delay the disbursement.

Loan Proration:

Undergraduate students who are graduating in December are subject to proration of their Stafford Loan. Federal regulations require UNCW to prorate loans for any student who is attending less than a full academic year in their final period of enrollment prior to graduation. Please contact your financial aid counselor for details regarding loan proration if you are planning December graduation.

Loan Limits: