Important Notice for First-Time Borrowers
First-time who borrowers of money through the Federal Stafford Loan program must complete entrance counseling and sign a Master Promissory Note to receive your money!
Loans are delayed 30 days for all first-time borrowers.
About Federal Stafford Loan
The Federal Stafford Loan is not a grant awarded by Capital University. It is a loan and will require repayment. To apply for a Federal Stafford Loan, you must complete the Free Application for Federal Student Aid (FAFSA). Even though the unsubsidized Federal Stafford Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible. You can receive a subsidized loan and an unsubsidized loan for the same period. For more information, refer to the Student Loan Fact Sheet on this web site.
Subsidized Federal Stafford Loans
This is a need based loan.
The interest rate is fixed at 6.0%.
The federal government pays the interest on the loan while the student is enrolled at least half-time per term.
There is a 10 year repayment which begins 6 months after graduation or after the student is no longer enrolled at least half-time.
Unsubsidized Federal Stafford Loans
This is not a need based loan, therefore, the federal government does not pay the interest for the student while the student is in school.
The interest rate is fixed at 6.8%.
The student has the option to pay the interest quarterly or let the interest accrue.
The unsubsidized Federal Stafford loan may be used along with the subsidized Federal Stafford loan to receive the maximum Federal Stafford eligibility.
Independent students or students whose parents are ineligible to borrow under the Federal PLUS program may borrow additional unsubsidized Federal Stafford loan funds during an academic year.
Repayment terms are the same as the Subsidized Federal Stafford loan.
Your financial aid award letter will indicate the maximum loan amount available for the academic year. If you plan to borrow through the Federal Stafford Loan programs, be sure to apply for the amount you will need for the entire academic year.
Actions Required to Receive Your Loan Money
New Capital students or a first time new borrowers at Capital MUST complete a promissory note
Continuing or returning Capital students who have borrowed previously using Great Lakes as your guaranty agency, your loan will automatically be certified and disbursed (unless you notify our office in writing of any loan reductions you wish to make). You do not need to complete a promissory note.
If you have used a bank or loan organization OTHER THAN Great Lakes to borrow money, you must contact the financial aid office directly for necessary procedures to ensure that your loan is dispersed (received by you or Capital) in a timely manner.
Recommended Stafford Loan Lenders
Visit FASTChoice for a list of recommended Stafford Loan Lenders.