Federal Stafford Loans
Types of Federal Stafford Loans
Federal Stafford Loans are available as subsidized, unsubsidized, or a combination of both types. Students are not required to make payments on either type of loan while enrolled at least half-time at an eligible educational institution. However, students may choose to make regular or interest-only payments while enrolled.
Subsidized Stafford Loans are awarded based on each student's demonstrated financial need, as determined by this Paul Mitchell School's Financial Aid Leader and the FAFSA. These loans are interest free while the student is enrolled at least half-time at an eligible educational institution or during authorized grace and deferment periods. Interest is charged when the loan is in a repayment or forbearance status.
Unsubsidized Stafford Loans are awarded regardless of each student's demonstrated financial need. These loans begin to generate interest charges immediately after disbursement. These charges may be deferred during at least half-time enrollment, grace, and deferment periods, but they will be capitalized (added to the outstanding loan balance).
Federal Stafford Loan Amounts
The amount available in Federal Stafford Loan funding will vary for each student. The type and amount of each loan is determined by this Paul Mitchell School's Financial Aid Office based on demonstrated financial need, class level, other financial aid, and previous borrowing totals.
The Maximum borrowing amount and program clock hours will vary from state to state. For more information please contact the Financial Aid Officer, Varania Willaby, by calling 203.985.0222 x14, or by emailing varaniaw@northhaven.paulmitchell.edu.
Interest Rates
| First Disbursement of a Subsidized loan for Undergraduate borrowers: | Interest rate on the unpaid balance |
Federal Family Education Loan Program Interest Rate on unsubsidized loan |
|
| Made on or after | And made on or before | ||
| July 1, 2008 | July 1, 2009 | 6.0% | 6.8% |
| July 1, 2009 | July 1, 2010 | 5.6% | 6.8% |
| July 1, 2010 | July 1, 2011 | 4.5% | 6.8% |
| July 1, 2011 | July 1, 2012 | 3.4% | 6.8% |
Fees
All Federal Stafford Loans may be subject to an Origination and Default fee of up to 2%, taken from the value of the loan at the time it is disbursed to the school. The loan amounts listed above and on financial aid award notifications represent the gross amount (amount before the fees have been paid). Students should consider the fees charged by each lender when choosing their loan provider.
Repayment
Standard loan repayment begins after the loan grace period, or 6 months after the student graduates, leaves school, or drops below half-time enrollment. Standard repayment will initially be scheduled for fixed monthly payments over a 10 years period. Other repayment options are available to fit student's individual needs.
How to Apply for a Federal Stafford Loan
Students should complete the following steps with the school's financial aid leader to apply for a Federal Stafford Loan:
- For students who want to apply for Federal Student Aid, you must first have a PIN. It can be set up at www.pin.ed.gov
- Complete the Free Application for Federal Student Aid (FAFSA)
- Accept the desired loan(s) on the Financial Aid Award Notification Letter
Students accepting a Federal Stafford Loan for the first time at this Paul Mitchell School's or students who would like to choose a new lender should also:
- Complete an online Federal Stafford Loan Entrance Interview
- Select a lender and complete a Master Promissory Note
PLEASE NOTE: A Master Promissory Note can be completed and printed by going to www.studentloans.gov.
If you do not want to complete the MPN electronically, you may complete it using the paper process by going to www.studentloans.gov. If using this method, please return the completed form to the Financial Leader. We will electronically process the loan with the lender you have selected. You may also apply electronically from many lender websites. The school's OPEID# is and should be used for loan processing.
