Student Loans

(Online Lender List)

Stafford Loans are a major form of self-help aid. Stafford Loans are available through the Federal Family Educational Loan (FFEL) Program.  This money must be paid back.

WHAT KINDS OF FFEL STAFFORD LOANS ARE AVAILABLE?

FFEL Stafford Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized -- that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.

WHO CAN GET A FFEL STAFFORD LOAN?

If you are a regular student enrolled in an eligible program of study at least half-time, you may receive a FFEL Stafford Loan. You must also meet other general eligibility requirements, such as, making satisfactory academic progress toward your program of study.  If you are on financial aid probation or suspension, you are not eligible to apply for a student loan.

HOW MUCH CAN I BORROW?

Beginning July 1, 2007 the maximum annual loan limit of $3,500 if you are a first-year student enrolled in a program of study that is at least a full academic year.  A first-year student is one who has less than 28 hours of academic, vocational or technical class work in their major field of study. 

Beginning July 1, 2007 the maximum annual loan limit of $4,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.  To be classified as a second-year student you must have completed 28 or more hours of academic, vocational, or technical class work in your major field of study.

For periods of study that are less than an academic year, the amounts you can borrow will be less than those listed above. Also the amounts you can borrow may be effected by your enrollment status. 

CAN THE SCHOOL REFUSE TO CERTIFY MY LOAN?

Yes. The school can refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for, if the school documents the reason for this action and explains the reason to you in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.

HOW WILL I RECEIVE MY FFEL STAFFORD LOAN?

The lender will send your loan funds to the school. In most cases, your loan will be disbursed in at least two installments; no installment can be greater than half the amount of your loan.

Your loan money must first be used to pay for your tuition, fees, room and board. Loan checks are not disbursed until thirty (30) days after the first day of your enrollment period. This way, you won't have to repay the loan if you do not begin classes or if you withdraw during the first thirty (30) days of classes. However, you may owe money to the school for a portion of tuition or other fees.

WHAT IS THE INTEREST RATE?

For loans that were first disbursed on or after July 1, 1994, the interest rate has been subject to change each year, but by law, it has never exceeded 8.25 percent. For information on the current interest rate for a FFEL Stafford Loan, check with your lender. You will be notified of interest rate changes throughout the life of your loan.

If you have subsidized loans, you will not be charged interest while you are enrolled in school at least half-time, during a grace period, or during authorized periods of deferment. Interest will begin to accrue -- that is, accumulate -- when you enter repayment.

If you have unsubsidized loans, you will be charged interest from the day the loan is disbursed until it is repaid in full, including in-school, grace, and deferment periods. You may choose to pay the interest during these periods, or it can be capitalized.

IS THERE A CHARGE FOR THESE LOANS?

You will pay a fee of up to 4 percent of the loan. This fee is deducted proportionately from each disbursement of your loan. For a FFEL Stafford Loan, a portion of this fee goes to the federal government and a portion goes to the guaranty agency to help reduce the cost of the loans. Also, if you don't make your loan payments when they are scheduled, you may be charged collection costs and late fees.

WHEN DO I PAY BACK MY LOAN?

After you graduate, leave school, or drop below half-time enrollment, you have  six months before you begin repayment. This is called a "grace period."

During the grace period on a subsidized loan, you don't have to pay any principal, and no interest will be charged. During the grace period on an unsubsidized loan, you don't have to pay any principal, but interest will be charged. You can either pay the interest or it will be capitalized.

After you leave school or drop below half-time enrollment, you will receive information about repayment and will be notified of the date repayment begins. However, you are responsible for beginning repayment on time, even if you do not receive this information.

HOW CAN I FIND A LENDER?

The CLCC Financial Aid Office has a  Lender List provided in our Stafford Loan Information and Loan Data Form wrap to choose a lender from.  Or, you can select a lender from our online lender list. Keep in mind these are Lenders that are most popular with our student borrowers and you may choose a lender not on the list as long as you are able to provide the correct lender code also.

HOW DO I APPLY FOR A STUDENT LOAN AT CLCC?

1.  You will need to have a valid FAFSA application on file in the financial aid office whether you are eligible to receive funds or not. 

2.  You will need to complete a Student Loan Data Form and return to the CLCC Financial Aid Office by mail at PO BOX 649, Wesson, MS 39191 or by fax at 601-643-8240.

3.   A student loan on-line entrance counseling session is required for all first time borrowers at CLCC.

4. Before your loan is certified, you will have to have a schedule on file of at least 6 hours. You will  have to have met eligibility requirements, such as, making satisfactory academic progress, not be in default on a federal student loan, owe no overpayment to Dept. of Ed., have no student loans discharged for any reason, and have met all Admission requirements.

5. After your loan is guaranteed, the lender you chose will send you a Federal Stafford Master Promissory Note for you to complete and return back to them or you can download a MPN by clicking on the Federal Stafford Master Promissory Note link above, printing the MPN, completing it now and mailing it to your lender or by going to our online lender list.

WHAT HAPPENS WHEN MY MONEY ARRIVES AT THE SCHOOL?

After your loan money has  been credited to your account in the Business Office and once all the fees you owe the College have been deducted, any loan refund due you can be picked up in the Business Office at the campus you attend on the Friday after disbursement.

HOW DO I PAY MY LOAN BACK?

Before leaving school you will need to complete an online exit counseling session at esfweb.com. There are three repayment plans that are available to borrowers of FFEL Stafford Loans. All the repayment plans require you to repay the loan within ten (10) years. Also, no scheduled payment may be more than three times greater than any other of your scheduled payments. The repayment plans will be explained in more detail during the online entrance and exit loan counseling. If you ever have any questions about your student loan, do not hesitate to contact the school or your lender.

If you have any questions, you can contact Leslie Smith in the Financial Aid Office for more information.