Federal Family Education Loan Program

Amount

Up to $8500 subsidized; Up to $12,000 unsubsidized

Criteria

  • U.S. citizen or permanent resident
  • Completion of the Free Application for Federal Student Aid, FAFSA. MBBS' code for step 6 of the FAFSA loan application is G10368
  • Specific details and other criteria are available at http://www.fafsa.ed.gov

Description

The United States government insures an ever-increasing loan pool for undergraduate and graduate students. Students who are U.S. citizens or permanent residents and demonstrate financial need may receive subsidized loans. Additionally, unsubsidized loans are available to graduate students. This information is subject to change authoritative information can be found at studentaid.ed.gov.

Subsidized Loans

Subsidized Loans are available to students who demonstrate financial need. The Federal government pays interest that accrues while the student is in school. Repayment begins 6 months after the student graduates, withdraws, or attends school less than part-time (part-time = 6-8 units). You must complete the FAFSA to determine your eligabilty for a federal subsidized loan.

Unsubsidized Loans

Unsubsidized Loans do not require a demonstration of financial need. Interest begins accruing immediately. Student is responsible for payment of interest while in school. Payment of interest may be deferred until after student graduates, withdraws, or attends less than part-time (part-time = 6-8 units). Deferred interest is added to principle, increasing the amount on which future interest is calculated.

Steps to Apply for a Stafford Loan

  1. Complete a Free Application for Federal Student Aid (FAFSA). The forms need to be filled out online. Complete the online application after January 1. If you are filing a renewal application which was mailed to you, you do not need to also file a new FAFSA application. Note: The MBBS' code for Step Six of the FAFSA application is G10368. If you do not have access to a computer there is a computer lab on campus.
  2. In 3-4 weeks after submitting your application you will receive a Student Aid Report (SAR). This will tell your Expected Family Contribution, which is necessary to calculate your eligibility. The school also receives this information electronically, which speeds up the loan process. Call the financial aid office to find out if your information has been received electronically and set up an appointment to work out your loan eligibility. You do not need to wait until you receive the SAR. To find out if your FAFSA has been processed, or to order a duplicate SAR, call 1-800-4FED-AID (1-800-433-3243), the Federal Student Aid Information Center.
  3. Complete a seminary Federal Family Education Loan Data Sheet, which is available at the Financial Aid Office or download form online
    and fax to financial aid director at 559-251-7212.
  4. If you have been selected for verification, you must submit a copy of your most recent income tax return with all schedules and W-2 forms.
  5. All students who are borrowing Federal Loans through MB Biblical Seminary must complete an Ed Test and a Master Promissory Note. Please complete an Ed Test on line by visiting this link. Once you complete your Ed Test please visit an Ed Fund Loan Portal to complete your Master Promissory Note.
  6. Before you graduate, withdraw, or drop below 6 units in a semester, you will be asked to complete an exit interview at the following link. You will have a six-month grace period before repayment begins. Be sure to keep all documents, promissory notes, and correspondence from your lender in an accessible file.

Internet Resources for Students with FFELP Loans

  • Department of Education – This site offers a wide range of links to frequently requested information. Topics include FAFSA, Title IV School Codes, Student Financial Assistance, Publications, and Products.
  • Corrections on the Web – On this site a student with a PIN number can make corrections on the FAFSA.
  • NSLDS Web Site for Students – A student with a PIN number can access the NLSDS web site and make inquiries about Title IV loans.
  • Register for a PIN Number – A student can register for a PIN number that may be used to access some of the web sites listed above. In addition, the PIN may be used as an electronic signature for FAFSA on the Web.
  • Student Aid Ombudsman – This site offers the student and/or FA Administrator a contact when questions or concerns regarding federal financial aid cannot be handled through the usual methods. Individuals may also call 877-557-2575.
  • EdFund – EdFund is a non-profit public benefit corporation that provides all loan guarantee services for the California Student Aid Commission.
  • EdWise – This site offers an online financial planning guide to help students manage their finances. Once the appropriate information is entered, EdWise does the calculating.
  • California Student Aid Commission (CSAC) – Information about California State Aid.