Loans

I. Overview

“Student loans” are a type of federal financial aid that you apply for by completing the financial aid process. Specifically the Stafford Loan program is a student loan program with THE BEST benefits for student borrowers.

 Students who participate in the Stafford Loan Program must abide by the rules of federal financial aid because a student loan is financial aid.

The Stafford Loan program is not a credit history based program. Unlike buying a car and applying for a consumer loan where your credit history will be checked, all students are eligible provided they are not currently in default on Stafford, Direct, or Perkins loan; have not reached the maximum borrowing limits; and are not in repayment on a federal grant.

If you are going to borrow money the Stafford loan program is the best deal for students.

II. Apply for a Student Loan (Stafford Loan)

Complete the following steps to apply for and receive Stafford loan funds:
  1. Apply for FAFSA.
  2. Complete the Loan Entrance Counseling Session
  3. Complete BCC’s loan application/select a lender
  4. Receive Award Letter from BCC’s financial aid office
  5. Receive Master Promissory Note (MPN) from NELA
  6. Sign and return the MPN to NELA immediately
  7. Pay tuition or request a tuition deferment from BCC’s financial aid office
  8. Verify your tuition has been paid in full or confirm tuition deferment has been posted to your account
  9. Verify your loan funds are available
  10. Obtain Attendance Verification
  11. Pick up Check and be prepared to provide photo ID

III. Selecting a Lender

You may choose any bank/lender/credit union that participates as a lender for the Stafford Loan program. Many banking and lending institutions do participate in this lucrative business. You may want to do some research on borrower benefits as you choose a lender.

As of June 5, 2008, the following lenders are no longer participating in the loan program:

  • Boeing Employee Credit Union
  • Chase
  • Citi Bank
  • College Loan Corporation
  • Student Loan Xpress
  • Washington Mutual

Check the web or call your own bank to find out if they participate.

IV. Stafford Loan Limits

Student Level Maximum Stafford
(subsidized and unsubsidized)		 Maximum
Subsidized
Dependent
First year $3,500  
Second year $4,500  
Third or Fourth year** $5,500  
Independent
First year $7,500 $3,500
Second year $8,500 $4,500
Third or Fourth year** $10,500 $5,500
   
Lifetime limits
Student Level
& Dependency Status		 Maximum Stafford
(subsidized and unsubsidized)		 Maximum
Subsidized
Dependent undergraduate $23,000  
Independent undergraduate $46,000 $23,000

**For students who pursue B.A.S. degrees.

Please click here for information about private loans.

Return to the Financial Aid Office's main web page.

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