completing your stafford Loan process

Effective December 11, 2008, all new Stafford Loans borrowed by Lesley University students are Federal Direct Stafford Loans. You will no longer be required to select a lender as part of the Stafford loan process.

In response to the recent instability of private financial institutions and their increased fee rates associated with student loan programs, we have chosen to participate fully in the William D. Ford Direct Loan Program. In the William D. Ford Direct Loan Program, your Stafford Loan lender is the federal government and the loans are serviced by the U.S. Department of Education.

If you are a current Lesley student and have already received Federal Stafford Loans from your preferred lending institution for the 2008-2009 academic year, you will receive any remaining 2008-2009 Federal Stafford Loan disbursements from your chosen lender.  However, should you apply for federal financial aid from Lesley University in future academic years, you will be borrowing Federal Stafford Loans from the William D. Ford Direct Loan Program, at which point a new Master Promissory Note (MPN) must be signed. We'll send you a reminder after you have been awarded for 2009-2010.

The sections below will walk you through all steps of the Federal Direct Stafford Loan process. Please don't hesitate to contact our office if you have any questions or would like assistance with any part of the process.

Know the Terms and Conditions

The basic terms and conditions of Federal Stafford loans (maximum interest rate, maximum fees, deferment, forbearance, and loan forgiveness options) are set by the federal government. The interest rates and fees for the William D. Ford Direct Loan Program are as follows:

2008-2009 Academic Year:
Undergraduate Subsidized: 6.0% Interest rate, 0.5% fee*
Undergraduate Unsubsidized, and all Graduate: 6.8% interest rate, 0.5% fee*

2009-2010 Academic Year:
Undergraduate Subsidized: 5.6% interest rate, 0.5% fee**
Undergraduate Unsubsidized, and all Graduate: 6.8% interest rate, 0.5% fee**

*The official 2008-2009 fee is 2%, with an instant rebate of 1.5% which is retained by making on-time payments during the repayment period.

**The official 2009-2010 fee is 1.5%, with an instant rebate of 1.0% which is retained by making on-time payments during the repayment period.

Interest Payments: The Federal government pays the accruing interest on a subsidized loan during your in-school, deferment, and grace periods. The interest that accrues on unsubsidized loans during these periods is the responsibility of the borrower. Borrowers may choose to make voluntary interest payments while in school to reduce the overall cost of the loan or defer the interest payments until they enter repayment. Interest will be billed quarterly, and we recommend that unsubsidized borrowers pay the interest at this time. Otherwise, unpaid interest on unsubsidized loans will be capitalized (added to the principal balance) at the end of the grace period.

To learn more about the terms and conditions of a Stafford Loan, see our Repayment page. You can also contact the Direct Loan Servicing Center (1-800-848-0979), or visit their website.

Accept Your Loan on LOIS

All new and returning borrowers are required to accept any Federal Stafford loans that have been offered in your Financial Aid Award Letter before we contact the Department of Education to disburse your loan. The Office of Financial Aid is proud to offer a streamlined online process using the Lesley Online Information Service (LOIS), with which many of our students are already familiar. In the course of this process you will have the opportunity to:

• Accept or decline your Stafford Loan(s).
• Request a decrease or, if you have additional eligibility, request an increase to your Stafford Loan(s)
• Link directly to the Direct Loan Entrance Counseling and Master Promissory Note once the process has been completed

For detailed instructions on completing this process please click on the link below:

Accepting Your Stafford Loan on LOIS [pdf]

After reading the instructions, click the link below to proceed to LOIS and begin the process.

Lesley Online Information Service

Master Promissory Note

If you have not previously borrowed a Federal Direct Loan, or if you have not borrowed within the last ten years, you must complete a Master Promissory Note. The Master Promissory Note (MPN) is an agreement between you and the federal government and that you understand your responsibilities of as a Federal Direct Loan borrower.

You can complete the Direct Loan MPN by clicking below, then following the link labeled "Complete New MPN for Student Loans", and selecting "Subsidized/Unsubsidized" as the MPN type.

Complete the Direct Stafford Loan Master Promissory Note

Returning borrowers, including those who have borrowed a Federal Direct loan at another institution, do not need to sign a new MPN, but you will still have to complete the process of accepting your loan described above.

Entrance Counseling

If you have not previously borrowed a Federal Direct Loan at Lesley University, you must also complete the Direct Loan Entrance Counseling, which explains your rights and responsibilities as a Federal Direct Loan borrower.  You will be prompted to do so after completing your MPN, or you can access the Entrance Counseling directly using the link below.

Complete the Direct Stafford Loan Entrance Counseling

Please note that you will be required to log in using your Department of Education PIN at both the beginning and the end of Entrance Counseling.  Please do not exit out of the browser, until you have entered you PIN again and have designated Lesley University to receive confirmation that you have completed Entrance Counseling (Federal School Code: 002160).

Previous Federal Direct Loan borrowers will not need to complete Entrance Counseling. It must only be completed once during your time at Lesley University.

Loan Disbursement (Getting the Money)

Loans are credited to your student account ("disbursed") after all of the above steps have been completed, and the add/drop period for each semester has ended. The Financial Aid Office confirms your enrollment before disbursing your loan(s).

Your loan is used first to pay your tuition, fees, and any other direct charges that you owe the university for the given semester. Any remaining funds will be mailed to you in the form of a refund check by the Student Accounts Office approximately 10 days after the disbursement date.

Loan disbursement dates vary according to your academic program. To learn how these dates are determined, please visit the Application Process and Forms page specific to your academic program. 

Exit Counseling and Repayment

When you graduate, leave school, or cease to be at least a half-time student, each loan enters a six-month grace period before actual repayment begins.

Detailed Information about Stafford Loan Repayment

Before or during your grace period, you must complete Loan Exit Counseling, which informs you of your rights, responsibilities, and terms of repayment on your loan. You may complete this requirement online or via the mail.

Stafford Loan Exit Counseling