Stafford Loans (Student)

Federal Regulations

  • Complete a FAFSA
  • If you have defaulted on a previous loan, you will not be eligible.
  • Submit any additional documents that may be requested via your NEST account.
  • For example verification documents such as taxes or citizenship requirements.
  • You are under no obligation to accept funds simply because they have been included in your award letter.
  • Accept, decline or reduce your loans on NEST, on the "Accept Award Offers" tab  How to review awards on NEST
  • Be registered at least half time (6 credits for Undergraduate and Post Baccalaureate students; 4.5 credits for Graduate students)
    • Students in a Post Baccalaureate program through the graduate school must be enrolled in 6 credits in order to qualify for the Stafford loans.
    • Students who are graduating after the Fall or Winter term will get a prorated loan amount based on the number of credits they are enrolled in for the various terms. The loan amounts cannot exceed 50% the annual loan limits. 

Stafford Loan Limits:

Stafford Loan Interest Rates:



How to Apply:

FEDERAL STAFFORD LOAN ENTRANCE COUNSELING 

In accordance with federal regulations, first-time Stafford loan borrowers must complete entrance counseling on the web at https://studentloans.gov. The student must first “Sign In” with the student FSA ID then choose “Complete Loan Counseling (Entrance, Financial Awareness, Exit)” then select Entrance Counseling (Required) >"START" Choose the school to notify, finally "Select Student Type" 

  • This is only an exercise to know your rights and responsibilities as a loan borrower and is not a reflection of your true cost, your actual tuition bill will reflect your actual cost to attend Montclair State University.

  FEDERAL STAFFORD LOAN MASTER PROMISSORY NOTE (MPN)

The Federal Stafford Loan Master Promissory Note (MPN) is a promissory note under which you may receive multiple subsidized and unsubsidized Federal Stafford Loans over a maximum ten-year period. In accordance with federal regulations, first-time Stafford loan borrowers must complete the Master Promissory Note (MPN) on the web at https://studentloans.gov. The student must first “Sign In”  with thier FSA ID then choose “Complete Loan Agreement (Master Promissory Note) ” then select MPN for Subsidized/Unsubsidized Loans > "START"  make sure you select Montclair State University for the school information section.

  • No loans can be credited to a student’s account until Entrance Counseling and MPN are complete

Please review the following video for a step by step tutorial on the 2 step process for completing the Stafford Loan Application: 


Refund Checks:

If you have received a refund after all your loans have been disbursed the following options are available:

1.  Students can keep the refund and use for winter or summer classes and/or spring books.
2.  Student can cash the check and then repay the lender or servicer in the same amount or a lesser amount (if you need some of the funds for educational expenses).
3.  Student can request a reduction of the loan for the upcoming semester.


 

Estimated Monthly Repayments


Repayment Plans

There are various repayment plans. You can select a repayment plan at the time you leave (exit) school. You will need to figure out which is the best for you.

  • Standard Repayment – under this plan you will pay a fixed monthly amount for a loan term of up to 10 years. Depending on the amount of the loan, your loan term may be shorter than 10 years. This plan has a minimum monthly payment of $50 + interest.
  • Extended Repayment -this plan is similar to the Standard plan, however it allows for a loan term of 12-30 years, depending on the total amount borrowed. Stretching out the loan term reduces the size of each payment, but it increases the total amount repaid over the lifetime of the loan.
  • Graduated Repayment – This plan starts off with lower payments, which gradually increase every two years. The loan term is 12 to 30 years, depending on the total amount borrowed. The monthly payment must be at least the interest that accrues and must also be at least $25. The monthly payment can be no less than 50% and no more than 150% of the monthly payment of the standard repayment plan.
  • Income Contingent Repayment – Payments are based on the borrower’s income and the total amount of debt. Monthly payments are adjusted each year as the borrower’s income changes. The loan term is up to 25 years. At the end of 25 years, any remaining balance on the loan will be discharged. The write-off of the remaining balance at the end of 25 years is taxable. The minimum monthly payment is $5.
  • Income based repayment – similar to the income contingent plan but this plan caps the monthly payments at a lower percentage of a narrower definition of discretionary income.

For a more detailed explanation of loan repayment visit the Loan Repayment Page

Students who have borrowed prior loans in the FFELP Program (Federal Family Loan Program) have the option to consolidate all of their Federal Student Loans with the Federal Direct Loan Program.


Loan Deferments

Under the Federal Loan Program, you can defer (postpone) repayment if you are:

  • Enrolled in school at least half time
  • A graduate fellow
  • Participating in a rehabilitation program for the disabled
  • Unemployed or suffering from economic hardship (forbearance)

Interest on subsidized Stafford Loans is paid by the Federal government during authorized deferment periods, but interest on unsubsidized Stafford Loans will accrue.