Financial Aid Office
Completing Your Stafford Loan Process
All new Stafford Loans borrowed by Lesley University students are Federal Direct Stafford Loans. You are no longer required to select a lender as part of the Stafford loan process.
In response to the recent instability of private financial institutions and their increased fee rates associated with student loan programs, we have chosen to participate fully in the William D. Ford Direct Loan Program. In the William D. Ford Direct Loan Program, your Stafford Loan lender is the federal government and the loans are serviced by the U.S. Department of Education.
The sections below will walk you through all steps of the Federal Direct Stafford Loan process. Please don't hesitate to contact our office if you have any questions or would like assistance with any part of the process.
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Know the Terms and Conditions
The basic terms and conditions of Federal Stafford loans (maximum interest rate, maximum fees, deferment, forbearance, and loan forgiveness options) are set by the federal government. The interest rates and fees for the William D. Ford Direct Loan Program are as follows:
2011-2012 Academic Year:
Undergraduate Subsidized: 3.4% interest rate, 0.5% fee*
Undergraduate Unsubsidized, and all Graduate: 6.8% interest rate, 0.5% fee*
2010-2011 Academic Year:
Undergraduate Subsidized: 4.5% interest rate, 0.5% fee**
Undergraduate Unsubsidized, and all Graduate: 6.8% interest rate, 0.5% fee**
*The official 2011-2012 fee is 1.0%, with an instant rebate of 0.5% which is retained by making on-time payments during the repayment period.
**The official 2010-2011 fee is 1.0%, with an instant rebate of 0.5% which is retained by making on-time payments during the repayment period..
Interest Payments: The Federal government pays the accruing interest on a subsidized loan during your in-school, deferment, and grace periods. The interest that accrues on unsubsidized loans during these periods is the responsibility of the borrower. Borrowers may choose to make voluntary interest payments while in school to reduce the overall cost of the loan or defer the interest payments until they enter repayment. Interest will be billed quarterly, and we recommend that unsubsidized borrowers pay the interest at this time. Otherwise, unpaid interest on unsubsidized loans will be capitalized (added to the principal balance) at the end of the grace period.
To learn more about the terms and conditions of a Stafford Loan, see our Repayment page. You can also contact the Direct Loan Servicing Center (1-800-848-0979), or visit their website.
Accept Your Loan on LOIS
All new and returning borrowers are required to accept any Federal Stafford loans that have been offered in your Financial Aid Award Letter before we contact the Department of Education to disburse your loan. The Office of Financial Aid is proud to offer a streamlined online process using the Lesley Online Information Service (LOIS), with which many of our students are already familiar. In the course of this process you will have the opportunity to:
- Accept or decline your Stafford Loan(s).
- Request a decrease or, if you have additional eligibility, request an increase to your Stafford Loan(s)
- Link directly to the Direct Loan Entrance Counseling and Master Promissory Note once the process has been completed
For detailed instructions on completing this process please click on the link below:
Accepting Your Stafford Loan on LOIS [pdf]
After reading the instructions, click the link below to proceed to LOIS and begin the process.
Lesley Online Information Service
Master Promissory Note
If you have not previously borrowed a Federal Direct Stafford Loan, or if you have not borrowed within the last ten years, you must complete a Master Promissory Note. The Master Promissory Note (MPN) is an agreement between you and the federal government that you understand your responsibilities of as a Federal Direct Stafford Loan borrower.
You can complete the Direct Loan MPN by clicking below, then following the link labeled "Complete New MPN for Student Loans", and selecting "Subsidized/Unsubsidized" as the MPN type.
Complete the Direct Stafford Loan Master Promissory Note
Returning borrowers, including those who have borrowed a Federal Direct Stafford Loan at another institution and whose MPN was signed in the last 10 years, do not need to sign a new MPN, but you will still have to complete the process of accepting your loan described above.
Entrance Counseling
If you have not previously borrowed a Federal Direct Stafford Loan at Lesley University, you must also complete the Direct Loan Entrance Counseling, which explains your rights and responsibilities as a Federal Direct Stafford Loan borrower. You will be prompted to do so after completing your MPN, or you can access the Entrance Counseling directly using the link below.
Complete the Direct Stafford Loan Entrance Counseling
Please note that you will be required to log in using your Department of Education PIN at both the beginning and the end of Entrance Counseling. Please do not exit out of the browser, until you have entered your PIN again and have designated Lesley University to receive confirmation that you have completed Entrance Counseling (Federal School Code: 002160).
Federal Direct Stafford Loan Entrance Counseling must only be completed once during your time at Lesley University.
Loan Disbursement (Getting the Money)
Loans are credited to your student account ("disbursed") after all of the above steps have been completed and the add/drop period for each semester has ended. The Financial Aid Office confirms your enrollment before disbursing your loan(s).
Your loan is used first to pay your tuition, fees, and any other direct charges that you owe the university for the given semester. Any remaining funds will be mailed to you in the form of a refund check by the Student Accounts Office approximately 11 days after the disbursement date.
Loan disbursement dates vary according to your academic program. To learn how these dates are determined, please visit the Application Process and Forms page specific to your academic program.
Exit Counseling and Repayment
When you graduate, leave school, or cease to be at least a half-time student, each loan enters a six-month grace period before actual repayment begins.
Detailed Information about Stafford Loan Repayment
Before or during your grace period, you must complete Loan Exit Counseling, which informs you of your rights, responsibilities, and terms of repayment on your loan. You may complete this requirement online or via the mail.
