Federal Stafford Loans, both subsidized and unsubsidized, are available through the Federal Direct Loan Program. Students who apply for Federal Stafford Student Loans must be matriculated, degree-seeking candidates enrolled at least half-time (six credit hours) per semester. Federal regulations specify that federal aid recipients must be U.S. citizens, U.S. nationals or eligible non-citizens.
The subsidized Stafford Loans are need-based, and the government pays the interest on these loans while the student is in school, during a six-month grace period immediately preceding repayment and during authorized deferment. The unsubsidized Stafford Loans are not need-based, and the student is responsible for all of the interest that accrues on the loan, including while in school.
A half-time student enrolled with at least six credit hours will be eligible for a specific amount of Federal Stafford Loans each academic year based on their grade level and dependency status. Below are the borrowing limits:
|Freshman (0-23 Credits)
||$3,500 + $2,000 unsubsidized
||$3,500 + $6,000 unsubsidized
|Sophomore (24-55 Credits)
||$4,500 + $2,000 unsubsidized
||$4,500 + $6,000 unsubsidized
|Junior (56-87 Credits)
||$5,500 + $2,000 unsubsidized
||$5,500 + $7,000 unsubsidized
|Senior (88+ Credits)
||$5,500 + $2,000 unsubsidized
||$5,500 + $7,000 unsubsidized|
First, complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code Number for use on the FAFSA is 002931. Based on that application, Student Financial Services will determine your eligibility for either a subsidized or unsubsidized Stafford Loan and subsequently make that award part of your financial aid award letter.
In order to accept any Federal Stafford Loan money in your financial aid award package, you must:
- Sign on to BannerWeb
- Click the Financial Aid tab
- Go to “Award”
- Go to “Award for Aid Year” and select 2013-14
- Click on “Accept Award Offer”
At this point, you will accept, decline or adjust the amount of your Federal Stafford Loan. From Banner Web, you can follow the link to www.studentloans.gov
where you can sign your promissory note and Loan Entrance Counseling. Your subsidized and unsubsidized Stafford Loans WILL NOT process if you do not complete these steps.
Federal Perkins Loan Program offers student loans with an interest rate of 5 percent to CCE students who are currently employed in the field of law enforcement. Loans must be repaid within 10 years. Payments begin nine months after the student leaves Guilford College or falls below half-time status. While you are in school at least half-time and during your six-month grace period, interest will not accrue and no payments are required. Following the grace period, the student will be billed on a monthly basis for the Perkins Loan. Deferments and extensions may apply under certain circumstances.
The first step is to complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code number for use on the FAFSA is 002931. Based on that application, Student Financial Services will determine your eligibility for a Perkins Loan and subsequently will make that award part of your financial aid award letter. Along with the award letter you will receive a Federal Perkins Loan information sheet and request form. You must then complete and return the Perkins Loan Request Form. From that form we start the loan process. You will receive a Perkins Promissory Note from the lender. Your loan proceeds will not transfer to Guilford College until that promissory note has been signed and returned to your lender.
Guilford College is pleased to be able to make available several third-party options for loans after students have looked into the federal loan programs. These loans are provided by banks and lending institutions and carry reasonable interest rates and repayment plans. They can be used to pay any balance due on a student’s account up to the difference between the financial aid awarded and the student’s budget.
Visit ELMSelect for a list of lenders for alternative loans. There, you can do a comparison of loans and apply for your chosen loan online. When you have completed the online application with the lender, they will notify Guilford College to certify the loan. We will then adjust your financial aid package and send you an amended award letter that will include the anticipated funds from your loan.