Frequently Asked Questions
Loans
The lenders listed on Clayton State University’s Lender List are lenders that we process loans with electronically. You are free to choose ANY lender that participates in the FFEL program even if they are not on our Lender List. If you choose a lender that is not on the following list, 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 have
to complete the Free Application for Federal Student Aid (FAFSA)
before I can apply for a private loan?
Yes. At Clayton State University you must first complete a
FAFSA for appropriate academic/aid year before your eligibility
for a private loan can be determined.
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 do I
need to do to get an in-school deferment form sent to my lender?
You do not need to do anything. The Registrar's Office
automatically notifies National Clearinghouse three times each
semester of a student's enrollment. The first notification will
be sent approximately two weeks after the semester starts.
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.)
I am transferring at the end of Fall
Semester to another institution but I already have loans in
place for Spring Semester. Will that loan transfer to my new
school?
No, financial does not transfer from one institution to
another. You must reapply for aid at your new school. You must
also request that your current school cancel your loan for
Spring Semester. The new school will not be able to certify a
loan for you if you have pending disbursements at your current
school. More information is available on our website
regarding Transfer Financial
Aid.
What is the interest rate?
Effective July 1, 2009 the interest rates are:
Subsidized Stafford Loan - 5.6%
Unsubsidized Stafford Loan - 6.8%
PLUS Parent Loan - 8.5%
How much can I borrow?
You can find the annual
and aggregate (lifetime) loan limits
here. However, please refer to your
award letter to determine how much you are eligible to borrow.
What is a Parent PLUS loan?
Parent PLUS loans are for
dependent students. These loans are the financial
responsibility of the parents, not the student. Eligibility for
the PLUS loan depends upon a credit check for the parent.
What can I do if my parents are denied a
PLUS loan?
If your parents are denied a Parent PLUS loan, you may be
eligible for increased unsubsidized Stafford Loan funds. You
would need to contact the Financial Aid Office so that your file
could be reviewed for additional unsubsidized Stafford Loan
funds.
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?
Loans are typically awarded for two semesters at a
time, e.g. Fall and Spring, Spring and Summer. However, loans
can be awarded for one semester if it is your final semester
before graduation (see question below). Students who receive
loans for Fall and Spring would also be eligible for a one
semester loan for Summer.
My loan is
for 2 semesters but I am graduating, what should I do?
If you are graduating and need a loan only for you final
semester of enrollment, your award must be prorated based on
your final enrollment. Please contact the Office of
Financial Aid if you are graduating Fall but have been
awarded Fall/Spring or if you are graduating Spring and have
been awarded Spring/Summer.
How long does it take to process my request?
It can take up to 14 business days for the Financial
Aid to process your loan application and transmit the
information to your lender. Please note that during peak
times it may take longer than then 14 business days.
Do I need
to complete Entrance Counseling?
Yes, if this is your first time borrowing at Clayton State
University. You will not be able to receive your loan
funds until you complete the required
Entrance Counseling.
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
Lender List.