Federal Stafford Loans

Direct Loan Program

Through the Direct Loan Program, students do not have to choose a lender for their Stafford loan.  The Department of Education acts as the lender on behalf of the student.  The Stafford loan is processed through Wabash College.  Wabash will originate the loan and then the student will need to sign the Master Promissory Note (MPN).The Stafford loan eligibility amount will vary based upon the student's year in school.  Principal payments are deferred until six months after the student is no longer enrolled.  There are two types of Stafford loan, subsidized and unsubsidized. The current interest rate for new subsidized Stafford loans is fixed at 6.0%. Subsidized Stafford rates for the 2009-2010 academic year will be 5.6%.  Unsubsidized Stafford loan rates are 6.80%.  There is a .5% origination fee charged for all Stafford loans. 

Subsidized

This type of Stafford loan is need-based.  The government pays the interest on this type of loan while the student is in school, during the six-month grace period, and during eligible deferment periods.  

Unsubsidized

This type of Stafford loan is not need-based.  The student is responsible for all of the interest that accrues on the loan, including when the student is in school.

STAFFORD LOAN APPLICATION INSTRUCTIONS:

Step 1 - Entrance Interview

(Select "Entrance and Exit Counseling GO" button at top of page)

Step 2 - Stafford Loan Request Form

Step 3 - ONCE YOU RECEIVE YOUR CONFIMRATION EMAIL FROM WABASH, SIGN your Master Promissory Note

*Before leaving Wabash (graduation or withdrawal), you must complete a federal EXIT INTERVIEW