The Loan Process
The process described here assumes the student has completed the Free Application for Federal Student Aid (FAFSA).
The student or parent obtains a Federal Stafford or Federal PLUS Loan Application from a participating lender or the college the student plans to attend as directed by the college Financial Aid Office. The student/parent must complete the borrower section and return it to the college, unless the college has indicated otherwise. Stafford and PLUS Loans have a Master Promissory Note (MPN) that borrowers complete and sign only once during the students entire college program at eligible schools. The college financial aid office then sends the necessary information regarding the loan amount the student is eligible to receive to the guarantee agency. The guarantee agency reviews the information and informs the lender whether or not the loan guarantee has been approved. The lender will deduct the appropriate loan fees and send the check or electronically transfer loan funds to the college. The college will confirm the student's enrollment status and credit loan funds to the student's account.
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