Student Loan Process

Federal Stafford Loan Process
Facts About Federal Stafford Student Loans - Important! Please Read.

Federal Stafford Loan Process

How do I apply?

To determine if you are eligible for federal Stafford loans, you must first apply for aid. Please view our main financial aid page.

What steps do I need to take to receive federal student loans for which I am eligible?

1.  Return your Award Letter

Your loan(s) will not be processed until you return your signed award letter to the Financial Aid Office. Once we receive your award letter and you have indicated you want to borrow a student loan, we will electronically submit your loan request(s) to the guarantee agency, Great Lakes Higher Education Corporation (GLHEC).

2. Student Loan Entrance Counseling

If you are a first time student loan borrower you must complete the Student Loan Entrance Counseling. This is a one-time requirement.

3. Master Promissory Note (MPN) for Federal Stafford Loans

Students who are borrowing Federal Stafford loans for the first time at Franklin need to complete an online MPN for the guarantee agency. Students who have already borrowed a loan from Franklin will not need to sign another MPN.  If you are already a customer of Great Lakes Higher Education, you may access additional information at your my.greatlakes.

4. Student Loan Exit Counseling

Completing loan exit counseling is a federal requirement

• if you graduate, or;
• if you cease to be enrolled or are enrolled less than half-time (undergraduate - 6 semester hours; graduate - 3 semester hours)

5. Student Loan Exit Counseling Exempt 

If you are graduating with an associate's degree and continuing on to get your bachelor's degree, you will complete this Exempt Form instead of #4 above. You will not be required to complete the Exit Counseling until you graduate with your bachelor's degree or you cease to be enrolled at least half-time.

• 2008-2009:   Summer 2008; Fall 2008; Winter 2009

When will I receive the proceeds of the loan?

Franklin University will send you a notification (typically by email) when the proceeds are applied to your tuition account at Franklin. If a credit balance is created when the loan funds are applied, a student refund will be issued within 10 to 14 business days after the date the credit balance occurred. You can view your tuition account at my.franklin.edu. 

Important Facts About Federal Stafford Loans

The federal government administers several different types of Federal Family Education Loans. To compare borrower benefits and/or complete the Master Promissory Note (MPN) click on the following link and select the appropriate Loan Type tab. 

Note: When completing your MPN, you may choose a lender from our preferred list or click on the "My Lender is Not Listed" button on the bottom of the page. 

1)  Stafford Loans  

There are two types of Stafford loans, subsided and unsubsidized. The financial aid office will determine if you qualify for subsidized, unsubsidized, or both. 

Subsidized Stafford loans are awarded to students based on need.  The federal government pays the accruing interest on these loans when students are enrolled in school at least half-time, during students' grace period, and during any periods of deferment. The fixed interest rate is 6% as of 7.1.08.  

Unsubsidized Stafford loans are not based on need, and students are responsible for paying accruing interest.  Students can choose to pay the interest while in school, or have it added to their loan balance. The fixed interest rate is 6.8%.

2)  Parent PLUS Loan for Undergraduate Students

Parent PLUS loans are available to parents and step-parents with good credit histories. Parents can borrow up to the total cost of their dependent's undergraduate education, minus any other aid for which the student is eligible. To qualify, the student must meet the requirements for federal financial aid. Parents must also complete the Parent PLUS loan application. 

The interest rate is fixed at 8.5% and interest begins to accrue immediately. Repayment starts within 60 days of the loan's last disbursement for the school year. Parent PLUS checks are released as copayable to parents and schools and sent directly to schools. Funds processed electronically are applied directly to the student’s account. 

3)  Graduate/Professional PLUS Loan  for students in a Graduate Program at Franklin

Graduate/Professional PLUS loans are an option if you are enrolled at least half-time in a graduate program at Franklin and you must have already applied for the annual loan maximum in federal subsidized and unsubsidized loans before applying for a GRAD PLUS loan. You can borrow up to the total cost of your education, minus any other aid for which you are eligible. To qualify, you must meet the requirements for federal financial aid.  You must also complete the Grad PLUS loan application. 

The interest rate is fixed at 8.5 % and interest begins to accrue immediately.  Repayment starts within 60 days of the loan's last disbursement for the school year, though borrowers may be eligible for in-school deferments.  Graduate PLUS checks are released as co-payable to the student and school and sent directly to the school.  Funds processed electronically are applied directly to the student's account. 

Additional Facts about loans:

• At least half-time attendance is required (undergraduate - 6 semester hours; graduate - 3 semester hours)
• Borrowing is a personal choice and should be made after careful consideration of the terms of the loan.
• Franklin University requires student loan funds to be applied directly to outstanding balances within the same financial aid year. If this creates a credit balance a refund will be issued within the following week.
• Current maximum loan ceilings per academic year for independent students are displayed on the following chart:

7. Interest rates are subject to change every July 1. Visit www.studentloannet.com for current rates.
8. Up to a 1.5 % origination fee is applicable on loans.

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Alternative Loans (ALT)

Alternative loans, also commonly referred to as private educational loans, are offered by banks and other private lenders to cover the costs of college not covered by financial aid. We recommend that you first apply for federal financial aid before considering an ALT loan. Alt loans can also be used for covering past due balances, and are subject to approval based on credit review. To view options and apply for an ALT loan, click here Alternative Loans

updated 7.11.08