The Federal Stafford Loan is a guaranteed student loan – no credit check necessary – and is solely in the name of student.

• The Federal Stafford Loan will be either Subsidized or Unsubsidized.
• In order to apply for the Federal Stafford Loan – complete the following steps:
  • Student must indicate interest in loans on the FAFSA
    • The question that states, “What types of aid interest you?" must be answered with “student loans,” “both work-study and student loans,” or “don’t know”
    • If a student answered that question as “work-study” or “neither” and would like to be awarded the Federal Stafford Loan, complete the Loan Request Form (available through Financial Aid Forms under Quick Links to the left) or contact the Office of Financial Aid at 717-872-3026.
  • If a student wishes to obtain the Federal Stafford Loan, s/he must complete the following:
    • Federal Master Promissory Note (MPN)
      • The MPN is good for a period of 10 years, unless the student changes lenders, the lender the student had is no longer lending, or the student changes guarantors.
      • Use the Quick Link to the left for the Stafford MPN to complete it online.
      • Download instructions on completing the MPN online (available through Financial Aid Forms under Quick Links to the left)
      • If you wish to complete a paper form, please contact America Education Services (AES) at 1-800-692-7392 to obtain a paper copy of the MPN. You can only request the paper MPN if Millersville University has already processed the Federal Stafford Loan for you.
      • The student’s PIN (from the FAFSA) can be used to sign the MPN
    • Federal Stafford Loan Entrance Counseling
      • Use the Quick Link to the left for the Entrance Counseling
      • This must be done so the student understands the terms of his/her loan.
• Amount borrowed is based on the student's academic level at the time the loan is processed. The amounts listed are the maximum yearly amounts. If the student receives other financial aid, the loan amount may be less.
• Due to regulation changes, any Federal Stafford Loan disbursed after July 1, 2008 will have increased amounts as follows:

*Changes based on law signed May 7, 2008

• Students may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid (717-872-3026) to cancel or reduce the loan, submit a Loan Change Form online or download the Loan Change Form and return it to the Office of Financial Aid (both forms are available through Financial Aid Forms under Quick Links to the left)
• The loan MUST BE REPAID to the lender. The lender is a bank, credit union, or other lender that participates in the Federal Family Education Loan Program (FFELP). Please see our Federal Stafford Loan Recommended Lender List at the bottom of this page.
• The student is the borrower.
• Student has up to 10 years to repay the loan depending on the size of the student's debt.
• Student selects lender at the time of application.
• During the repayment period, under certain circumstances, the lender may grant deferments, forbearances, or cancellations. A list of deferments and cancellations is provided at the time the student signs their Promissory Note.
• Awarded to degree seeking undergraduate and graduate students who are enrolled for at least 6 credits.
• The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible. The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the U.S. Department of Education.
• Effective July 1, 2006, the interest rate on the Unsubsidized Federal Stafford Loans is a fixed rate of 6.8%
• The Subsidized Federal Stafford Loans have the following declining interest rates:
  • 6.8% for loans disbursed 07/01/06 - 06/30/08
  • 6.0% for loans disbursed 07/01/08 - 06/30/09
  • 5.6% for loans disbursed 07/01/09 - 06/30/10
  • 4.5% for loans disbursed 07/01/10 - 06/30/11
  • 3.4% for loans disbursed 07/01/11 - 06/30/12
• A student can receive a subsidized and unsubsidized loan for the same period.
• Fees of up to 2% may be deducted from the total loan amount at the time of disbursement.
• Loan funds are disbursed in at least 2 installments.

Differences between the Federal Subsidized and Unsubsidized Stafford Loan:

• In addition to the base amount listed in the previous section, INDEPENDENT STUDENTS or DEPENDENT STUDENTS whose parents have been DENIED a PLUS loan, may borrow an additional amount. The amounts listed are the maximum yearly amounts. If the student receives other financial aid, the loan amount may be less.
• Due to regulation changes, any Federal Stafford Loan disbursed after July 1, 2008 will have increased amounts as follows:

*Changes based on law signed on May 7, 2008

Total Stafford Loan Limits

Federal Stafford Loan Recommended Lender List

*To apply, use the links above for the lender you choose and follow the instructions.

The "recommended" lenders listed above are recommended for the following reasons:

• They may offer discounts on origination fees.
• They may offer Stafford Loan repayment incentive programs.
• Please see our statement below regarding Recommended Lenders

Millersville University's Recommended Lender Lists
The Office of Financial Aid provides borrowers with a list of recommended lenders. These lenders have established themselves as quality institutions based upon efficiency in loan servicing, responsiveness to questions, quality of servicing, and borrower benefits. The lender you choose is a very important step in the loan process. Although Millersville University's Office of Financial Aid provides a recommended lender list, borrowers are free to choose any lender participating in the Federal Family Education Loan Program. Borrowers will not be denied or caused any unnecessary delay in certification for choosing a lender not on our recommended list.