STUDENT LOAN PROCEDURES FOR FEDERAL STAFFORD LOANS
Before You Get the Loan, Get the Facts
An education loan is a legally binding contract that must be repaid with interest even if you do not graduate or are unable to find a job. You are not obligated to accept loan funds if you don't need them, but don't be afraid to borrow if you really need the money.
Normally, funds are released in two installments to coincide with the academic terms. Loan funds will be issued directly to the school and distributed according to established procedures. Up to a 3 percent
federal origination fee may be deducted from your loan proceeds prior to disbursement. Funds can only be used for education related expenses.
Please allow several weeks for your loan to be approved and processed. To avoid unnecessary delays, be sure your application is accurate and complete. If you require more information or assistance, feel free to call or stop by the Financial Aid Office.
Features and Benefits of Federal Stafford Loans
Subsidized and unsubsidized Federal Stafford Loans allow you to borrow up to the maximum Stafford amount available for your grade level. The federal government pays interest on subsidized Stafford loans while you are actively enrolled in school and for a six-month grace period afterward. If you aren't fully eligible for need-based, subsidized Stafford funding, you may get an unsubsidized Stafford loan for any remaining Stafford eligibility. However, on the unsubsidized portion, you will be responsible for all interest that accrues from the date of disbursement.
Please Note: To be eligible for FFELP (Federal Family Education Loan Program) loans, borrowers must be U.S. citizens or permanent legal residents enrolled in school at least half-time. In addition, male students must satisfy requirements under the Selective Service Act. If you are in default on a prior loan or owe a refund on grant money, you will not be able to borrow further. Loan awards cannot exceed the cost of education.
The Loan Process
Complete the Student Loan Request Form that was included in your financial aid award letter and return it to the financial aid office. All first time borrowers at Edison College are required to complete an entrance-counseling interview before their loan will be disbursed.
You may access the counseling session on the Internet by clicking here. Follow the OpenNet instructions to set up your own User ID and Password. This is different from your Edison password. Be sure to follow the format exactly. Once you have set up your User ID and Password you will be directed to complete the Loan Counseling Survey. Save the User ID and Password for future use, you will use it again.
After your loan is processed by the Edison State College Financial Aid Office (approximately two weeks after submitting your Student Loan Request Form to the Financial Aid Office), return to this site to electronically sign your Master Promissory Note (MPN) by clicking “e-sign your MPN” under the lender's name that you chose on your Student Loan Request Form.
Entrance Loan Counseling
Exit Loan Counseling
If you are a returning student and your lender is not among those listed above, please contact the Financial Aid Office for further instructions.
Your funds will be received by the college by electronic funds transfer and credited to your Edison student account. Any refund due to you will be mailed. You must continue to meet all eligibility
requirements at the time funds are received by the college for disbursement to your student account.
Federal regulations require that each student who receives a Stafford loan complete an exit-counseling interview. Exit interviews can be completed over the Internet by clicking here. Disregard the statement "if you are about to graduate or leave school" and complete the exit interview.
Do not complete another entrance interview. If you need help with your User ID or Password, call (888) 272-5543. Do not use the Exit form on the Nelnet Web site.
