Frequently Asked Question
Loans
The lenders recommended on Clayton State University’s Preferred Lender List have been chosen based on the repayment benefits offer to student borrowers as well as the customer service provided for our students before, during and after your enrollment at CSU. If you wish to use a lender that is not on our preferred lender list, you are welcome to do so but please check with the Office of Financial Aid to make sure of the process for that lender.
What is a subsidized Stafford loan?
A subsidized
Stafford loan is a federally funded loan that is awarded based
on a student’s financial need. The federal government
“subsidizes” the interest on this loan while you are in school
or in deferment.
What is an unsubsidized Stafford loan?
An
unsubsidized Stafford loan is a federally funded loan that is
not awarded based on student’s financial need. Interest is
charged on this loan from the day it is disbursed until it is
paid in full.
Is there a fee for a Stafford loan?
Yes.
Each lender can charge an origination fee ranging
from 0% to 3% on each Stafford loan disbursement. For more
details, check with your specific lender.
Do I need to be in a specific number of hours to qualify
for a loan?
Yes. Undergraduate students must be
continually enrolled in at least 6 or more hours to qualify to
receive a student loan. Graduate students must be
continually enrolled in at least 5 or more hours to qualify to
receive a student loan.
What happens to my loan funds if I am enrolled in mini
session classes?
You will not be eligible to receive
your loan funds until you are currently attending at
least 6 credit hours. (For example, if you are enrolled in a 3
credit hour class for the full session and a 3 credit hour class
for the second-half mini session you will not be eligible for
your loan funds until the mini session has begun.) This means
that a student attending mini session classes could incur an
initial out-of-pocket expense if registered for fewer than 6
hours during the first half of the semester.
What is the interest rate?
The interest rate on
a Stafford Loan is fixed at 6.8% effective July 1, 2007.
How much can I borrow?
For 2007-2008 academic
year, a dependent undergraduate
can borrow up to $3500 as a freshman, $4500 as a sophomore, and
$5500 as a junior/senior. In addition, an independent
undergraduate can borrow up to an additional $4000 as a
freshman/sophomore or an additional $5000 as a junior/senior. Graduate
students can borrow up to $20,500 (maximum $8500 subsidized). However, please refer to your
award letter to determine how much you are eligible to borrow.
Important additional information on both annual and lifetime loan limits is available here.
What can my loan money be used for?
Any expenses
incurred as it relates to your education. This can include, but
is not limited to, tuition, fees, books, supplies, rent, etc.
When is my money disbursed?
You will disburse
your funds towards your fees by running “How Much Do I Owe?”
on
the DUCK. If your loan is guaranteed before the fee payment
deadline date it can be applied towards your tuition. However,
any residual funds are not refunded to you until after the
semester begins and drop/add has ended.
When do I have to pay my loan back?
Repayment
will start six months after you graduate, leave school or drop
below half time enrollment.
What if I only want the loan for one semester?
You will need to notify our office because we will need to
revise your award to reflect the one semester only loan because
your eligibility can change.
How long does it take to process my request?
You
need to allow 4 to 6 weeks for your loan to be processed.
What happens after I complete my online loan acceptance
form on the DUCK?
Your request will be transmitted to
the lender, and an email will be sent to your Clayton State
email account. The email will instruct you how to go online and
sign your Master Promissory Note (MPN) using your FAFSA pin
number. If you don't know your FAFSA pin number, go to
http://www.pin.ed.gov/.
Which lender is the best?
To make a decision
about a lender, refer to our Preferred Lender List.