The Stafford Loan is a government loan, administered by a bank, guaranteed by a guarantee agency, and certified by the school. Depending on need, graduate students can borrow up to $8,500 per academic year for school related expenses in a subsidized loan and $12,000 in an unsubsidized loan. The limit on the unsubsidized Stafford may be increased if the student does not qualify for the subsidized loan as cost of attendance will allow. Students must contact the Director of Financial Aid for this increase.
The present interest rate is fixed at 6.8%. The interest on subsidized Stafford loans is subsidized by the government while the student is enrolled at least half time. The unsubsidized Stafford will begin to accrue this interest at the time of disbursement. Neither must be repaid until 6 months following graduation or after dropping below half time. Lenders and guarantee agencies may take out up to 2% of the loan amount for origination and default fees, so be sure to borrow accordingly. The procedure for applying for a Stafford loan is as follows:
- Complete FAFSA form.
- Complete a Stafford Loan Request Form and return it to the Financial Aid Office.
- Choose a lender and complete Entrance Counseling and a Master Promissory Note on Open Net or through a lender of your choice. http://opennet.salliemae.com
First time borrowers at Wesley can choose a lender, sign a master promissory note, and complete entrance counseling through the Open Net system. However, students are not limited to the choice of banks on Open Net. The Stafford Loan Reqest Form allows a student to indicate the bank of his or her choosing. The student will then need to complete that lender's application requirements and will not need to complete anything on Open Net.
Loan funds will be received by electronic fund transfer or by paper check, depending on the lender. The loan takes a few days to process, and disbursements will be scheduled once per week. Tuition, fees and any other charges must be paid first from the loan disbursement. Then, students may request a refund of any remaining credit balance once all charges are covered.
Financial Aid refunds are processed on a weekly basis. Refund request forms are located in the Business Office or online at www.wesleyseminary.edu/forms. They must be submitted by 12 noon on Wednesday for a check date of Friday. If you would like your funds to remain on your account to cover future charges, please write a request and submit it to businessoffice@wesleyseminary.edu.
Please note: If class hours drop below six credits, the student is no longer qualified for Federal Stafford Loans and the loan proceeds in their entirety will be returned to the lender. The student will not be able to retain any of the funds for coverage of the remaining tuition charges.
