The Federal Stafford Loan Program consists of two
types of loans that are guaranteed by the federal government. Your offer of financial aid will list which
of these loans and how much has been offered to you. BORROW
ONLY WHAT YOU NEED, THIS IS A LOAN AND MUST
BE REPAID.
1.
Federal Stafford Subsidized
Loan is
awarded on the basis of financial need, as determined by the FAFSA. The federal government pays the interest on
the loan until the student enters repayment.
2.
Federal Stafford
Unsubsidized Loan is not awarded on the basis of financial need. Interest is charged
from the time the loan is disbursed until it is paid in full. Students have the option of paying this
interest while in school or deferring the interest until withdrawal or
graduation.
Students must complete a FAFSA before applying for a
Federal Stafford Loan. Currently the
interest rate is fixed at 6.8%. Rates
are subject to change annually on July 1st. Repayment will begin six months after the
student graduates, withdraws or drops below half-time status. Loan funds are
usually sent electronically at the beginning of each semester to CalArts for
disbursement to the students account.
Any student who is registered at least half-time is
eligible to apply. You must be a
A credit check is not required for the Federal Stafford Loans.
Loan limits depend on the student’s year level. This table shows the loan limits on or after
Annual borrowing limits for
Unsubsidized Federal
Available to independent
status undergraduate students, dependent status students whose parents have
been denied the Parent PLUS loan and to graduate students. Also available to student’s who do not
demonstrate financial need.
BFA
1 BFA 2 BFA 3 BFA 4
$4,000 $4,000 $5,000 $5,000
$12,000 $12,000 $12,000
For loans first disbursed on or after
Your unsubsidized Stafford Loan does not offer a
grace period, payments begin within 60 days of
graduation or withdrawing from school.
Your lender may offer a six month deferment but interest will
accrue. Deferment periods (i.e., a time
when your payments are suspended) may be available under certain circumstances,
such as continuing your education or financial hardship.
Monthly payments are calculated based on the amount
owed at the beginning of repayment. Payments may be adjusted based on your
income level. Additionally, some lenders offer repayment incentives such as a
reduction in the interest rate for payments that are automatically deducted
from a checking account or for a certain number of consecutive on-time payments
counted from the first required payment.
There is no penalty for prepayment.
For more information contact the lender or your financial aid office.
Generally, the repayment period is 10 years. There are, however, various loan repayment and
consolidation programs available, either through a lender or through the
federal government, that may extend the period of time
depending on the program or your circumstances.
For more information on repayment, contact your lender or your financial
aid office.
As of
To apply for an Unsubsidized Stafford Loan you need
to check the “accept” column on your Offer of Financial Aid and return the
Offer to the office of financial aid.
New
Borrowers: If you are borrowing an Unsubsidized Stafford Loan
for the first time you will need to
complete a Master Promissory Note (MPN).
Sometime after you have submitted your signed Offer of Financial Aid you
will receive an e-mail (using the e-mail address you provided on your FAFSA)
from Sallie Mae giving instructions to complete the MPN and sign it
electronically (e-sign). Remember, you are signing a promissory note for a loan
that must be repaid. If you are unable
to e-sign your MPN you may print, sign and mail the form, following the website
instructions. Be prepared to provide two
references residing at different addresses.
New borrowers must complete Loan Entrance
Counseling. You will be prompted to
complete this mandatory counseling before you will be able to complete your
loan application. The counseling will
assist you in understanding your rights and responsibilities as a student loan
borrower and must be completed before any loan funds will be available to you.
Continuing
If you expect to pay your tuition with your loan
funds you will need to apply as early as possible, not
later than
Although you may chose any lender that participates
in the Federal Stafford Loan program, CalArts has developed a list of suggested
lenders selected as a result of year of experience with student loan lenders
and their submission of our Request for Information.
The link below outlines each lender’s contact
information, fees, interest rate upon repayment, repayment incentives and
options. Contact the lender directly for
any updated information. You should always review and verify exact terms,
conditions, qualifications and disclosures associated with any loan.
Students have the right and ability to select the
education loan provider of their choice and are not required to use any of the
suggested lenders.
Be aware that CalArts is not electronically
connected with every lender and guarantee agency. If you choose a lender not listed be sure to provide the financial aid office with their
contact information. If the lender you
choose issues their disbursements via paper check it is VERY important that you
apply EARLY to ensure receipt of funds before the date of registration.
All information is accurate as of