Federal Stafford Loans

Federal Family Education Loan Program (FFELP)

Your Financial Aid Award Letter indicates that you are eligible to participate in the Federal Family Education Loan Program, through either a Subsidized or Unsubsidized Stafford Loan. Payments on Stafford loans are deferred while you are in school on at least a half-time basis, and for a six month grace period after you stop attending at least half-time. Subsidized means the federal government will pay the interest on your loan while you are in school and for the grace period after you stop attending at least half-time. Unsubsidized means that the government does not pay the interest while you are in school. If you choose to let the interest accrue on the unsubsidized loan while you are enrolled, the principal balance of the loan will increase when the interest is capitalized (added to the principal of the loan).

Choice of lender

Federal Family Education Loans are subject to an origination fee (3%). Since these fees are deducted before the lender disburses the loan proceeds, the amount the lender sends will be 3% less than the actual loan. One-half of a full year loan will be disbursed at the beginning of each semester. All proceeds are forwarded to Lewis & Clark College. We will notify you when Stafford loan funds have been received.

Fees and disbursements

Federal Family Education Loans are subject to an origination fee (3%). Since these fees are deducted before the lender disburses the loan proceeds, the amount the lender sends will be 3% less than the actual loan. One-half of a full year loan will be disbursed at the beginning of each semester. All proceeds are forwarded to Lewis & Clark College. We will notify you when Stafford loan funds have been received.

Processing

Lewis & Clark College utilizes an automated electronic processing system for student loans. Here's how it works:

1. You complete and return your award acceptance letter to the Office of Student Financial Services.
2. We transmit the student loan data to your selected lender.
3. Edfund, our guarantee agency, sends you a pre-printed loan application/promissory note.
4. When you receive the application/promissory note, review it for accuracy, make adjustments as necessary, initial any changes, and complete all blank items in the Borrower Section. Please retain the “Borrower Copy" of this form. Return the signed application to Edfund in the envelope provided.

If you are borrowing a Stafford Loan at Lewis & Clark College for the first time, you will be required to complete an Entrance Interview prior to receiving the first loan disbursement. This can be done online using the following link: complete entrance counseling.

All loan requests must be received, certified, and processed while you are enrolled and attending classes at least half time at Lewis & Clark College.

Estimating your monthly loan payments

The minimum monthly payment is $50 and the maximum repayment period is 10 years. Lenders are required to offer options of standard, graduated, or income-sensitive repayments to new borrowers as long as minimum annual payments and maximum time periods are met. In addition, provisions are made for certain deferment and forbearance options. Contact your lender for specific information on deferment and forbearance. The interest rate for FFELP loan is set by federal regulation, and changes annually on July 1st. The cap on Stafford Loans’ interest rate is 8.25%. Use the following table to estimate the repayment amount for your Stafford Loans: