STAFFORD LOANS

The new process for applying for a Stafford Loan is now in place.  Big Bend Community College has changed from the FFELP (Federal Family Education Loan Program) to the Direct Loan Program.  The process is quite simple.  You will need to complete the following steps for a loan to be certified by BBCC:

1. Complete the FAFSA and have a complete financial aid file at BBCC.
2. For the 2010-11 academic year, complete the attached "Stafford Loan Request" form and submit it to the BBCC Financial Aid Office.  You can mail, bring in, or fax (509.762.3648) the form to our office.
3. Go to www.studentloans.gov and complete the Entrance Counseling and Master Promissory Note.

Once all of the above items have been completed, BBCC will then certify your eligibility for a Stafford Loan for the 2009-10 academic year.  If you have any problems or questions, please call the BBCC Financial Aid Office at 793.2034. 

The Stafford Loan Program

Stafford Loans are part of the Direct Loan Program.  The Stafford Loan Program offers two types of low-interest, variable-rate loans for student borrowers:  subsidized Stafford Loans and unsubsidized Stafford Loans.  Both have a variable interest rate, adjusted annually, with a cap of 8.25 percent.

SUBSIDIZED STAFFORD LOANS:

With a subsidized Stafford Loan, the government makes the interest payments on your loan at certain times, such as while you're in school or in deferment.  To qualify for a subsidized Stafford Loan, you must demonstrate financial need on your Free Application for Federal Student Aid (FAFSA).  Financial need is determined by taking into account your family's earnings, assets and expenses.  The results reveal how much you and your family must contribute toward your education costs and your need for financial aid.

UNSUBSIDIZED STAFFORD LOANS:

With an unsubsidized Stafford Loan, you’re always responsible for interest payments, even while you are in school.  You can either make interest payments or postpone them.  If you postpone interest payments, the lender will add the accrued interest to your principal balance.  This is known as capitalization.  Capitalization increases the total amount you will repay, so it benefits you to make interest payments to keep the balance down.  Financial need is not required to qualify for an unsubsidized Stafford Loan, but the costs of your education must exceed any other financial aid you have been awarded.

Student Loan Questions?

If you have a student loan issue to resolve, first contact your Financial Aid Office, servicer or guarantor.  If these organizations are unable to help you, contact the Department of Education’s Student Financial Aid (SFA) Ombudsman at (877) 557-2575.  The Ombudsman is a neutral independent office that works with student borrowers to help resolve student loan problems.

Borrowing Limits

The federal government limits the maximum amount you can borrow annually.  The BBCC Financial Aid Office determines how much of the maximum you are eligible to borrow each year.

Keep in mind that you may be repaying your Stafford Loan for as long as 10 years—more under loan consolidation options.  The more you borrow, the higher your monthly payments will be.  Don’t borrow more than you need.  The size of your monthly payments may make the difference between manageable and unmanageable debt in your future.

Loan Limits Chart