Stafford Loan Information

Review the Federal Aid Application Checklist for step-by-step instructions on applying for Federal Aid at BYU-Hawaii.

• Federal Stafford Loans are low-interest, Federally Subsidized and Unsubsidized Loans made available to eligible students from lending institutions to assist in paying educational expenses. If you have previous Federal Stafford Loans we advise you to continue to use the same lender. Before applying for a Federal Stafford Loan, you should first consider other sources of funds such as savings, family assistance, part-time employment, grants, scholarships, and awards.
  
  Eligibility:
• You must be a U.S. Citizen, permanent resident, or U.S. national.
  
• You must be enrolled at least half-time for the entire loan period (6 hours per semester/3 per term)
  
• You must be making Satisfactory Academic Progress (SAP)
  
• When considering your EFC and/or other types of financial aid, you must show need*
  
• First-time borrowers at BYU-Hawaii must complete Entrance Counseling before receiving funds.
• Students enrolled as visiting or non-degree seeking are not eligible for federal aid, scholarships, or any other financial aid.
  
  

* Increased limits beginning with the 2007-2008 school year.

Need can be a little more complicated than these two examples, but they serve to give you an idea of how eligibility is determined:

	Example 1: Indep. Junior Fall/Winter loan	Example 2: Dep. Freshman Winter-only loan
Cost of Attendance	$10,000	$5,000
EFC (FAFSA)	-$4,215	-$115
Financial Aid (i.e. scholarship/Pell)	-$1,000	-$1,950
Unmet need	$4,785	$2,935
Sub Stafford	$4,785	$2,625
Unsub Stafford	$4215	$0

Thoughts to consider: you can't always borrow the maximum limit the government allows; you can potentially borrow your annual maximum in one or two enrollments which leaves nothing for the rest of the year; other financial aid (i.e. scholarships, Pell Grant, talent awards, etc.) can impact your Stafford eligibility; the loan period you choose can effect how much you can borrow. To appropriately consider your eligibility, please contact the Financial Aid Office.

Information:
• A 3% origination fee, and possibly a 1% guarantee fee is deducted from your loan request.
• Your loan request amount will be disbursed in equal amounts for each period in the loan.
• Federal regulations require that first-time, first-year students must wait 30 days into the first semester before funds may be disbursed.
• Always keep the school, lender, and secondary markets informed of address/email/phone changes.
• Always keep copies of your loan documents.

Preferred Stafford Loan Lender List:

If you plan on borrowing a Federal Stafford Loan and have not previously borrowed from the program, you will need to select a lender. The lender is the institution from which the money is actually borrowed, but the interest rates and terms of the loan are set by the U.S. Department of Education. Therefore the real difference among lenders is measured in terms of customer service, savings programs and repayment options.

Reasons for selecting a particular lender vary from person to person. Some choose a lender based on name recognition. Others prefer the immediate benefit of lower origination fees. For some the deciding factor is the long-term advantage of repayment savings programs, like an interest rate reduction as a reward for making payments on time.

To assist families in this decision, the Financial Aid office has compiled a list of lenders that we consider excellent in the educational lending field. The Financial Aid office is committed to choosing lenders who provide good service and benefits to our students.  We have found each of the lenders on the list to provide prompt reconciliation of loan issues. They also provide fast electronic payment of loan funds directly to our institution, and offer a variety of savings programs during loan repayment.

The list of preferred lenders is available on the Loan Request Forms which are available at: w2.byuh.edu/services/fa/finaid/fed_forms.html
The borrower benefits for these lenders can be reviewed at: www.uheaa.org/borrowers02.html

Please note that borrowers are not required to select one of these lenders. Borrowers are encouraged to compare benefits and select a borrower that will provide the best service and benefits.  The Financial Aid office will process the loan with any lender that is chosen.

Avoiding Over Awards:
You cannot receive a loan in excess of your financial need, as determined by the FAFSA or the Renewal Application need analysis (see information on the FAFSA/Renewal Application). You will be asked to disclose all sources of financial aid, including scholarships, grants, loans, etc. If your loan, in combination with this other aid, exceeds your need, we may have to reduce the loan. If you have already picked up the check, you may be required to repay part of the loan immediately.

Interest and Fees:
There may be an origination and/or guarantee fee withheld from your loan. Check with your lender for amounts and details. The interest rate on Federal Subsidized and Unsubsidized Stafford Loans is a variable rate, calculated annually, with a cap of 8.25%.

Entrance Counseling:
Each borrower must attend an Entrance Counseling each session (each school year) before any Stafford Loan funds can be credited to the student account. Entrance Counseling can be done online (entrance counseling), where you read some information and take a quiz. The results are emailed to us, which documents that you've completed the loan counseling. You will also be asked to complete Stafford Loan Exit Counseling when you graduate or discontinue attendance at BYU-Hawaii. Failing to complete Exit Counseling will cause a restriction to be placed on University services.

Disbursement of Loan Funds:
View the Disbursement Information.

Charge Priorities
View the student account Charge Priorities.

Tuition Payment:
Tuition is due on the first day of class. Students who fail to pay full tuition by the first day of class will be assessed a $50 late fee. See the Academic Calendar for specific dates.

Discontinuance and Refunds:
To withdraw from school, you must first contact the Discontinuance Office, room 118F McKay, 675-3558, then contact the Financial Aid Office. If you officially or unofficially withdraw from the University, or if you stop attending classes, even though you do not withdraw, you may need to repay some or all of the Federal Financial Aid that you received for that enrollment period. If you receive F's and/or UW's in all of your classes, you may need to repay some or all of the Federal Financial Aid you received for that enrollment period.

Last Updated: November 2, 2007