Student Financial Services
Stafford Loans:
The following guidelines will provide you with general information about applying for a loan at Edmonds Community College. More detailed information is available upon request.
About the Stafford Loan Program
We offer two types of Stafford Loans: Subsidized loans are need-based and interest is deferred while in school. Unsubsidized loans are non-need based and interest cannot be deferred. However, students are not required to make payments on either loan until 6 months after they graduate or cease to attend school at least half-time (6 credits). Loans are subject to an annual interest rate. Annual academic year maximums and aggregate amounts do apply.
How Do I Apply For A Stafford Loan
A separate Loan Request form (available online, click on “forms” to the left, or in the Student Financial Services Office) must be completed if you would like a Stafford Loan.
You will be required to complete a Master Promissory Note (MPN) if you are a first time borrower or you are using a new lender. After your loan has been processed, you will be contacted by our guarantee agency (EdFund), with instructions on how to complete the promissory note online using your Federal PIN.
Loan Counseling Requirements
If you are a first time borrower at Edmonds Community College, you must complete a mandatory loan counseling session.
You will be asked to complete a loan exit prior to picking up the last disbursement of the loan period. The loan exit session is also available online.
How Much Can I Borrow
How Much Can I Borrow
All first year students (those with less than 45 college level credits, or those in a one year program) may borrow up to $3,500 in subsidized or unsubsidized loans. Second year students (those with 45 or more college level credits and in a two year program) may borrow up to $4,500 in subsidized or unsubsidized loans. You can never be more than a second year student at Edmonds Community College, since we are only a two-year school.
Dependent students (those that were required to provide parent information on the FAFSA) may borrow an additional $2,000 in unsubsidized loan funds.
Independent students (those that were not required to provide parent information on the FAFSA) may borrow an additional $6,000 in unsubsidized loan funds.
Depending on your assigned budget and your need, which is based on the information you provided on the FAFSA, you may not be eligible for the maximum loan amounts. Your eligibility for grant and loan funds will be determined by our office once your file is complete and ready for processing.
What Is The Interest Rate?
The interest rate is variable and capped at 8.25%. The rate is adjusted annually and you will be notified any time the variable rate changes. The Federal Government will pay the interest on your subsidized Stafford loan while you are in school at least half time (6 credits) and for the first 6 months after you cease attending school, or drop below half-time enrollment. You then become responsible for paying the interest on your subsidized Stafford Loan.
The interest on your unsubsidized Stafford Loan is charged as soon as your lender disburses the loan until it is paid in full. The government will not pay the interest on an unsubsidized loan. You can choose to pay the interest while you are in school or allow it to accumulate and be capitalized (added on to the principal amount of your loan). We recommend that you pay the interest on your unsubsidized Stafford Loan while you are in school to avoid the accumulation of interest on the principal of your loan.
Are There Any Processing Fees?
To offset administrative costs, Stafford loans are subject to a 3% origination fee, which is paid to the Federal Government, and a 1% guarantee fee, which is paid to EdFund, our guarantee agency. Currently, EdFund waives the guarantee fee, but it could be reinstated at any time. These fees are deducted from your loan funds prior to disbursement.
When Do I Begin Making Payments?
Repayment of both subsidized and unsubsidized Stafford loans begins six months after you graduate, leave school, or drop below half-time enrollment (6 credits). The chart below will give you an estimate of what you can expect to repay, based on what you borrow. It does not reflect capitalized interest on your unsubsidized loan. These are estimates only and actual numbers may vary.
|
Balance at Repayment |
Monthly Payment |
Number of Payments |
Total Interest |
| $1,000 | $50.00 | 22 | $79.52 |
| $2,625 | $50.00 | 47 | $346.83 |
| $3,500 | $50.00 | 76 | $874.00 |
| $5,000 | $61.00 | 120 | $2,359.00 |
| $10,000 | $123.00 | 120 | $4,718.00 |
| $15,000 | $184.00 | 120 | $7,078.00 |
| $20,000 | $245.00 | 120 | $9,737.00 |
How Do I Receive My Loan Funds?
When you complete the loan application form, you will be asked to choose a lender that participates in the Stafford Loan Program. You must choose a lender. Loan funds are disbursed to us directly from your lender or their agent. You are encouraged to contact lenders to find out the advantages of choosing one lender over another. The Financial Services staff are not able to help you with the process of choosing a lender and may not recommend one lender over another. You may choose any lender that participates in the Stafford Loan program. You will need to contact them and obtain their lender code before we can process your loan. Codes can often be found on the lenders’ Web sites. If you previously had a loan while attending Edmonds Community College, and wish to continue using the same lender, we can provide the code to you.
Loan funds are usually disbursed at the beginning of each quarter you are in attendance and remain eligible. However, if you request or obtain a loan for one quarter only, we are required to disburse half of your funds at the beginning of the quarter and the other half at the mid-point of the quarter. This is subject to change based on federal regulations.
Loan funds are available to the college from your lender via electronic transfer. This means your tuition will be deducted from your loan, if not already paid, and the balance disbursed to you in the form of a check and mailed to you from the college. You must complete the required Loan Counseling Session and sign the Promissory Note electronically using your Federal PIN, before you can receive your funds.
Based on the school’s default rate, we may be required to delay release of loan funds for 30 days for first time borrowers who are in the first quarter of their degree program. Currently this federal requirement does not apply to Edmonds Community College students.
Other Notes and Reminders
- You must be enrolled for at least 6 credits to be eligible for a loan.
- Loans are considered to be financial aid and are subject to the Satisfactory Academic Progress policy. Be careful about dropping classes after the quarter has begun. Even if you don't drop below 6 credits, you may be risking probation or termination of your aid.
- If you skip a quarter of enrollment, you will need to reapply for your loan.
- You may apply for a loan at any time during the school year, but you should allow for up to three weeks from the time you turn in the Loan Request Form until we receive your funds from your lender if you apply after the school year has started.
- EdFund is our guarantee agency. Once we certify a loan, we transmit the information electronically to EdFund. EdFund has many student loan planning tools available for students, and can be reached at www.edfund.org or by calling 1-877-2ED-FUND.
