Federal Loan Request Form

There are two key federal student loans available to undergraduate students who are U.S. or dual U.S. citizens, or permanent residents: the Federal Stafford Loan and the Federal Perkins Loan. The application for both loans is the Free Application for Federal Student Aid or FAFSA. We encourage families comfortable with online processing to complete the FAFSA online. If you prefer to complete a paper FAFSA, contact us at 1-800-723-4033 and we'd be happy to mail one to you.

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Interest Rates (for loans disbursed after June 30, 2008)*:

6.0%	Fixed, for Subsidized Stafford Loans
6.8%	Fixed, for Unsubidized Stafford Loans

*For Stafford Loans disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable, adjusted annually on July 1. The interest rate for these loans in 2007-08 is 7.22% and 4.21 for 2008-09. For Stafford loans first disbursed on or after July 1, 2006, the interest is fixed at 6.8%.

Standard Stafford Loan Limits:

Year 1 (Freshman)	$3,500
Year 2 (Sophomore)	$4,500
Year 3 (Junior)	$5,500
Year 4 (Senior)	$5,500

NOTE:  On May 7, 2008 President Bush signed a bill into law allowing undergraduate students to borrow an additional unsubsidized Stafford of $2000 per year if the calculated family contribution permits this increase. If you would like to borrow this additional amount, please add it onto the amounts above when completing the Loan Request Form keeping in mind it is an unsubsidized loan. We will notify you if we are unable to process the entire amount. While we want you to be aware of this recent change, we do urge you to borrow wisely.

 

Stafford Loan Type:

Subsidized Stafford Loans do not accrue interest while the student is enrolled at least half-time. Eligibility is based upon need as determined by the federal formula and is dependent upon other forms of financial assistance. Repayment begins 6 months after the student is no longer enrolled at least half-time.

Unsubsidized Stafford Loans are not based upon need, and interest does accrue while the student is enrolled; however, interest can be capitalized (not paid but added to the loan amount) while the student is enrolled at least half-time. Repayment begins six months after the student is not longer enrolled at least half-time.

Suggested Lenders
There are many, many lenders of Federal Stafford Loans. Colby has an electronic interface with the following lenders for whom we can facilitate the processing of a federal student or parent loan. Though families can chose a different lender, the paper processing may be more cumbersome and we will be unable to counsel students about the specific lender incentives applicable to loan fees or repayment.

Lender	Origination Fee	Details
MES HELPP	2%
Wachovia	2%	0.25% interest rate reduction with auto debit
MaineAdvantage	2%
Federal Direct Loan	3%	1.5% origination fee rebate assuming 12 initial on-time payments  0.25% interest rate reduction for electronic payments (in repayment)

Lender terms are subject to change at any time.