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Financial Aid > Student Loan Application Process
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One of your financial aid awards is a Federal Stafford Loan. Your Financial Aid Announcement will show it to be either “subsidized” (which means it is need-based) or “unsubsidized” (not need-based). There are small differences between the two loan programs. The process of obtaining either Stafford Loan is described in detail below. More information.
If a Federal Perkins Loan appears on your Financial Aid Announcement you will need to complete an additional two-step process for that loan: a promissory note to be provided to you later in the summer; an entrance counseling session which you can complete now. More information.
An non-federal alternative loan will provide additional funds to pay for college if you (the student) will be the borrower. Each lender is free to determine its own characteristics and requirements. More information, and links to applications, see Option #4.
The Federal
Choosing a Lender
Funding for this program comes from a bank. While the federal government has created the guidelines all lenders must follow, there are some characteristics which will make lenders unique.
To help you select a lender, the Office of Financial Aid completed a thorough evaluation of nine lenders who submitted proposals for our review. We evaluated the lenders on several critical areas (listed below in alphabetical order) and chose six lenders who had the highest overall scores. View our lender comparison chart.
· borrower incentives: in what ways can you save money?
· customer service
· financial literacy programs: how will they help you understand your loan?
· lender stability: are they likely to provide loans as long as you are a student?
· loan servicing: who will you repay and correspond with about the loan?
· on-line access and electronic signature
· value-added products: tools to help you understand the loan process and repayment responsibilities
While we believe these lenders will best serve your needs, you are not limited to the lenders on this list. The Office of Financial Aid will process your application promptly and accurately regardless of which lender you choose.
How to Apply
Step 1: Complete Stafford Loan Entrance Counseling
· Select "
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· Select "I Agree" at the bottom of the page and begin your session.
· Print the Confirmation Page or note the Confirmation Number before leaving the site.
· The Office of Financial Aid will be notified when you have completed your session.
Step 2: Complete a Federal
· View our lender comparison chart and select your lender
· Click on the link below the lender’s name to access the Master Promissory Note.
· Your lender will notify the Office of Financial Aid when you have completed the MPN.
· The Office of Financial Aid will contact you if additional information is required.
Loan News Update!
On May 7, President Bush signed into law The Ensuring Continued Access to Student Loans Act of 2008 which implements several changes in federal loan programs. Among the most significant changes which will be of interest to you, is that you may borrow an additional $2000 from the Unsubsidized Federal Stafford Loan each year. The new loan limits are as follows: freshmen - $5500; sophomores - $6500; juniors - $7500; seniors - $7500.
(You must be enrolled as regular students in an eligible program. All degree-seeking students at Lake Forest meet these two criteria.)
If your Financial Aid Announcement does not include the maximum amount, and you want to borrow additional funds, please notify Margaret Alsaraf. Up to $2,000 Unsubsidized Stafford Loan will be added to your financial aid announcement and processed along with your other Stafford Loan.
Note that this Unsubsidized Stafford Loan has an interest rate of 6.8% while the Subsidized Stafford Loan is at 6.0%.
Borrow Wisely
· Borrow only what you need. You are not required to borrow the full amount shown on your Financial Aid Announcement.
· Investigate other sources of financial aid that do not need to be repaid (scholarships, grants, work-study).
· If you have an Unsubsidized Stafford Loan, try to make at least some payment toward the interest while you are enrolled at the College or during your grace period, to reduce your total debt.
· Tell your lender or loan servicer if you change your name or address, withdraw from the College, transfer to a new school, or graduate.
· Wise management of your loan will establish good credit in your name, which is very important for your future. Make all payments on time (consider setting up an automatic debit from your checking account) and keep copies of all documents and correspondence related to your loan.
If you have any questions about the application process, please contact:
Margaret Alsaraf
Assistant Director of Financial Aid
847-735-5015
847-735-6271 (fax)
