Federal Stafford Loans

To borrow the Federal Stafford Loan, read all the information contained below then complete and submit the Stafford Loan Activation Form (LAF). We prefer that you submit the LAF electronically by following the link above. However, we will also accept the LAF in person to Student Financial Aid and Scholarships, Fitzgerald Student Services Bldg. – 3rd floor, via U.S. Mail to Mailstop 0076, Reno, NV 89557 or via fax (775) 784-1025. If you have any questions, please contact our office at (775) 784-4666 or toll-free at (877) 666-0014.

TYPES OF LOANS

Your Offer Letter reflects an estimated award of either a subsidized or unsubsidized Stafford Loan (or a combination of both).

• Subsidized Stafford Loan (EST. STAF) is “need-based”. The federal government pays the interest to the lender while you are enrolled at least half time, during the “grace period”, and authorized periods of deferment. Interest begins to accrue when you enter repayment.
• Unsubsidized Stafford Loan (EST. UNSUB) has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.

FEES, INTEREST AND REPAYMENT

• The lender can charge up to a 0.5% origination fee. This fee, if applicable, is deducted before the loan is disbursed.
• The loan guarantor is mandated to charge the 1% federal default prevention fee in accordance with the Reconciliation Act S.1932.
• UNDERGRADUATE STUDENTS ONLY: As of July 1, 2009, the interest rate on new Subsidized Federal Stafford Loans is a fixed 5.6%.
• GRADUATE, PROFESSIONAL and/or MEDICAL STUDENTS, the interest rate on new Subsidized Federal Stafford Loans is a fixed 6.8%.
• For ANY student who borrows an Unsubsidized Federal Stafford Loan, the interest rate is a fixed 6.8%.
• For loans disbursed prior to July 1, 2006, the interest rate continues to be variable based on the 91-day T-bill.
• Repayment begins six months from the date of graduation, withdrawal, or enrollment less than half time. There is no pre-payment penalty.

NEW BORROWERS AT THIS UNIVERSITY

1. Select a lender. Our office has compiled a selection of lenders. These lenders were selected based on customer service, borrower benefits and the lenders’ history with the University. Each year, we evaluate leading lenders in the industry and select the lenders after lengthy discussion and comparison. Borrowers have the right to select any lender. If you want to borrow from another lender not listed, contact our office in order to expedite your loan; we will ask you to submit a copy of the paper Master Promissory Note (MPN) with the name, lender code, guarantor code and U.S. mail address for that lender along with the LAF for processing.
   
   
2. Go to your lender’s Web site to complete the Master Promissory Note (MPN) and sign using your FAFSA PIN. If you don’t complete the online MPN, the lender will automatically mail you a pre-printed paper MPN, but this process is slower and may delay your funds.
   
   
3. Complete the ENTRANCE COUNSELING at www.edfund.org, click on “EdTest”. New borrowers must complete Entrance Counseling before Stafford Loan funds can be disbursed.

PROCESSING INSTRUCTIONS

1. Read these instructions carefully then submit the completed Loan Activation Form (LAF) to our office.
   
   
2. Review your Offer Letter on ePAWS. Consider your budget carefully and your anticipated expenses, then decide how much to borrow. You may request a specific dollar amount or request maximum on the LAF. A written dollar amount will take precedent over a request for maximum.
   
   
3. Once the LAF is received, a financial aid advisor will evaluate your borrowing history, check your actual class standing and confirm your Title IV financial aid eligibility, including Satisfactory Academic Progress (SAP). If you meet all eligibility requirements, your loan will be certified and the data transmitted electronically to the lender.

DISBURSEMENT INFORMATION

• Once your loan is processed and guaranteed, the lender sends you a Notice of Guarantee (NOG) listing the approximate disbursement dates.
  
  
• When funds are received by the Cashier’s Office, our office reconfirms your aid eligibility, including SAP. If you are eligible and registered in the appropriate number of credits, the funds are credited to your student account. Per federal regulations, funds cannot be disbursed to the University any earlier than 10 days prior the start of classes each semester.

• Our office notifies you in writing each time loan funds are disbursed into your student account. You are encouraged to utilize ePAWS at www.unr.edu to check on the status of your financial aid.
  
  
• After all University charges are paid, any remaining funds are mailed from the Cashier’s Office to the address listed on ePAWS or through direct deposit. Contact the Cashier’s Office to set up direct deposit.

HOW TO SELECT A LENDER

On the following page, our office lists a selection of lenders. These lenders were selected based on customer service, borrower benefits, technology, and the lenders’ history with the University. Each year, we evaluate leading lenders in the industry and selected the lenders after lengthy discussion and comparison. These lenders have some benefits in common such as on-line Master Promissory Notes, e-signature, and free on-line access to account information. The table lists some of their unique benefits to help you make your choice.

One factor to consider when choosing a lender is your predicted repayment behavior. A few things to consider are whether or not you’ll use the auto debit (ACH) which is a factor for some benefits; if you will make all your payments on-time; when you want to earn the benefits; would you like all the benefits sooner rather than later; are you willing to trade a smaller benefit earned sooner for a larger benefit earned later; what kind of job do you anticipate having once you graduate; will you be able to afford the payments – these are all questions to ask yourself before deciding on a lender.

LENDER	BENEFITS
Chase Education Finance 1 E. Ohio Street, IN1-0104 Indianapolis, IN 46277 1.800.487.4404 http://www.chasestudentloans.com/custom/unr/ Servicer: Chase	0.5% Origination fee 1.0% Default fee 0.25% Interest rate reduction with auto debit from a checking or savings account. Loans originated and serviced by Chase.
Citibank Application Processing P.O. Box 6128 Sioux Falls, SD 57117-6128 1.800.967.2400 http://www.studentloan.com/schools/unr Servicer: Citibank	0.5% Origination fee 1.0% Default fee 0.25% Interest rate reduction when a borrower signs up for the auto-debit payment program and agrees only to receive statements electronically.
Discover Student Loans P.O. Box 30947 Salt Lake City, UT 84130-0947 1.877.728.3030 http://www.discoverstudentloans.com/ Servicer: Great Lakes	0% Origination fee (Discover will subsidize the fee) 0% Default fee (Discover will absorb default fee) 0.25% interest rate reduction with auto debit from a bank account. Does not sell loans.
U.S. Bank ACS/Loan Originations P.O. Box 92251 Los Angeles, CA 90009-2251 1.800.835.1161 http://www.usbank.com/staffordapp Servicer: ACS	0.5% Origination fee 1.0% Default fee 0.25% Interest rate reduction with AutoPay. Real time access account information-E-Bill & E-Statement.
Wachovia Education Finance P.O. Box 13667 Sacramento, CA 95853-3667 1.800.338.2243 http://studentloans.wachovia.com/jump/u002568/stafford.htm Servicer: ACS	0.5% Origination fee 1.0% Default fee Free online account access available 24 hours. Processing student loans for 25 years.
Wells Fargo EFS P.O Box 5185 Sioux Falls, SD 57117-5185 http://wfefs.wellsfargo.com/jump/unr.html Servicer: Wells Fargo	0.5% Origination fee 1.0% Default fee Processing student loans since 1968. Free online account access.

**All borrower benefits are subject to change.
**All lenders are unaffiliated with each other with the exception of Wells Fargo and Wachovia.
As of January 1, 2009 Wells Fargo merged with Wachovia.

IMPORTANT INFORMATION

• Academic year loans are disbursed in two equal increments, one each semester.
• A spring semester only loan is monitored for a minimum of seven working days by the National Student Loan Database System (NSLDS) to ensure that the borrower does not receive more than one loan for the semester and does not exceed the academic year borrowing limits. If you are transferring to this University, please cancel your spring loan at your previous college immediately.
• It is your responsibility to read The Guide.
• You are required to maintain Satisfactory Academic Progress (SAP) in order to receive the Federal Stafford Loan. Undergraduate students must maintain a cumulative UNR GPA 2.0 or better; graduate students must maintain a cumulative UNR GPA 3.0 or better each semester. Furthermore, you must earn the credits for your enrollment/funding status. This is a brief synopsis only; you are required to read and understand the entire SAP regulations.

ELM RESOURCES

www.elmresources.com
This site can help you track the progress of your current loan(s). It shows amounts, changes, anticipated disbursement dates, and more.

NATIONAL STUDENT LOAN DATABASE SYSTEM (NSLDS)

www.nslds.ed.gov
This site is an excellent resource to help you track the principal and outstanding aggregate limit on your entire FFELP and Direct Stafford Loan borrowing history.

EDFUND

www.edfund.org
This site can help you complete the Entrance Counseling via EdTest, create a budget using EdWise, and learn more about Stafford Loan, repayment and your right and responsibilities as a loan borrower.

DEFERMENTS

Our office participates with the Student Clearinghouse which ensures the lenders are updated several times a year with current enrollment status. If you borrowed a loan at another school and now would like your previous loan deferred, please contact your previous lender. If they request our office to complete a Deferment Form, you may submit the form to our office. Deferment forms can be obtained from your lender.

REPAYMENT

Once you graduate or drop below half-time, you have a one-time six month “grace period” before repayment begins. If you are not able to make the scheduled payments, contact your lender for other repayment options such as forbearance or income-contingent repayment plans.

ACHIEVING YOUR FINANCIAL GOALS - PAYING IT BACK

When borrowing a federal Stafford Loan, it is the borrower’s responsibility to ensure the loan is paid back in accordance with the terms detailed in the Master Promissory Note. The University has partnered with lenders and guarantors to develop a comprehensive default prevention plan. If you are delinquent in repayment, the University, the lender, and the guarantor will contact you to reestablish satisfactory payment arrangements.

Defaulting on a federal student loan is very serious and could have costly consequences such as:

• Negative Credit History
• Wage Garnishment
• Higher Interest Rates on Future Purchases
• Denied Consumer Loans and Loss of Eligibility of Future Financial Aid
• Stress
• Collection costs
• Offset paid out of federal tax returns, state tax returns, lottery winnings, and other federal and state funds.

ACADEMIC YEAR BORROWING LIMITS BY CLASS STANDING

Dependent Students
Class Standing	Cumulative Credits Earned	Base Stafford Loan Eligibility (Subsidized and Unsubsidized)	Additional Unsubsidized Stafford Loan Eligibility
Freshman	0-29 credits	$3500	$2000
Sophomore	30-59 credits	$4500	$2000
Junior	60-89 credits	$5500	$2000
Senior or 2nd BA	90-192 credits	$5500	$2000
Independent Students and Dependent Students Whose Parents Are PLUS Denied
Class Standing	Cumulative Credits Earned	Base Stafford Loan Eligibility (Subsidized and Unsubsidized)	Additional Unsubsidized Stafford Loan Eligibility
Freshman	0-29 credits	$3500	$6000
Sophomore	30-59 credits	$4500	$6000
Junior	60-89 credits	$5500	$7000
Senior or 2nd BA	90-192 credits	$5500	$7000
Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase.
Additional Categories
Teaching Cert.		$5500	$7000
Graduate	0-140 graduate credits	$8500	$12,000
Medical	1st – 4th year	$8500	$32,000

AGGREGATE LIFETIME LIMITS

Category	Maximum Stafford Loan Eligibility
Dependent Undergraduate	$31,000 (no more than $23,000 of which may be subsidized)
Independent Undergraduate	$57,500 (no more than $23,000 of which may be subsidized)
Graduate	$138,500 (no more than $65,500 of which may be subsidized)
Medical	$224,000 (no more than $65,500 of which may be subsidized)
Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase.