Most students who are U.S. citizens or permanent residents may participate in the Federal Stafford Loan program. If you received a notice of financial aid eligibility from Oberlin, it indicates whether you are eligible for a Federal Stafford Loan, either subsidized or unsubsidized.

The Office of Financial Aid will send you information about Federal Stafford Loans and our preferred lenders shortly after the College receives your matriculation deposit.

Terms of Federal Stafford Loans

Loan funds are obtained from private lending institutions. To apply for a Federal Stafford Loan, students must complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.

• No credit check is required.
• The loan is made to the student.
• The maximum amount you may borrow is determined by your undergraduate class year as follows:
  - First-year students: $3,500
  - Sophomores: $4,500
  - Juniors and seniors: $5,500
• The interest rate during repayment is variable and equal to the 91-day T-bill rate plus 1.7 percent. However, the interest rate will never exceed 8.25 percent.
• The standard repayment period is 10 years.
• The minimum monthly payment required is $50.
• Up to 4 percent of the loan amount will be retained by your guarantor for guarantee and insurance.

Subsidized vs. Unsubsidized Loans

Subsidized Federal Stafford Loans
• Interest is paid by the federal government, and no payment is required from you while you are enrolled at least half time.
• Payments will begin six months after you graduate or leave Oberlin.

Unsubsidized Federal Stafford Loans
• Interest begins accruing on the date the loan is received.
• You may choose to pay the interest only or allow it to accumulate and be capitalized (added to the principal amount of your loan) until six months after graduating or leaving Oberlin.

Choosing a Federal Stafford Loan Lender

Funds for Federal Stafford Loans are provided by private lending agencies. Oberlin has strong working relationships with several preferred lenders and knows that they provide consistently good service to students and their families, including such services as electronic fund transfers and special repayment incentives. Working with a preferred lender expedites the delivery of your loan funds to Oberlin.

To choose a different lender, you should simply complete the Oberlin Federal Stafford Loan Request Form, listing the lender's complete name and lender code.

Please note Oberlin's Preferred Lender List is only a suggestion of potential loan providers.  Oberlin receives no compensation, income or in kind support from these lenders in return for being placed on our Preferred Lenders List.  Students and families are highly encouraged to select a lender that best suits their individual needs regardless of whether or not that lender appears on Oberlin's Preferred Lender List.

Oberlin's 2008-2009 Federal Stafford Loan Stafford Lenders and repayment benefits can be found here.

Master Promissory Note

Once you complete your Federal Stafford Loan Request Form, you will be sent a Master Promissory Note at your permanent address. If you use the electronic process to request your Federal Stafford Loan via Sallie Mae, you have the option of printing the Master Promissory Note on your own printer.

Your Master Promissory Note must be completed, signed, and returned to your loan-servicing agent (e.g., Sallie Mae). The note is valid for up to 10 years, so you will not have to complete this step in the future unless you decide to change your lender.

Checking the Status of Your Federal Stafford Loan

After you make your Federal Stafford Loan request and return your Master Promissory Note, you will receive an acknowledgment of approval from your loan-servicing agent. This notice will tell you when funds will be forwarded to Oberlin on your behalf.

If you use one of Oberlin's preferred lenders (above), you can check the status of your loan by visiting your preferred lenders web-site.

Entrance Counseling

If you are a first-time borrower of a Federal Stafford Loan at Oberlin, you must complete entrance counseling. Federal regulations governing the loan programs require that you understand your rights and responsibilities before you receive your loan. This understanding is documented with a Student Loan Entrance Counseling Record.

You can complete entrance counseling online by visiting MappingYourFuture.org. Oberlin will receive notice that you have completed this process.

Reducing or Declining Your Federal Stafford Loan

You are not required to take the full amount of the Federal Stafford Loan that is included in your financial aid package. If you wish, you may borrow less than the maximum permitted by your eligibility. You may also decline the loan in its entirety.

To reduce or decline your Federal Stafford Loan, you must complete the Federal Stafford Loan Decline or Reduce Form.
Go to Financial Aid Forms