• Enrolled half-time (six credit hours) or more
• Making Financial Aid Satisfactory Academic Progress (SAP).  The Financial Aid Satisfactory Academic Progress policy is available in the Office of Student Financial Aid and online at www.daltonstate.edu/finaid/SAP.htm.
• Eligible for federal aid - see the Dalton State Financial Aid Information handout or click "how is my financial aid eligibility determined?" for more information.

The Subsidized Stafford Loan interest rate is a fixed rate of 6% for loans disbursed on or after July 1, 2008.  Unsubsidized Stafford Loans have a fixed interest rate of 6.8% for loans disbursed on or after July 1, 2006.  Repayment begins six months after you graduate or drop below half-time enrollment.  This six month grace period is to allow you time to find a job before repayment begins on your Stafford Loan.

The Office of Student Financial Aid determines your eligibility for the Stafford Loan based on the results of your FAFSA (Free Application for Federal Student Aid), cost of attendance, and other financial aid received.  This includes agency payments such as Vocational Rehabilitation, Workforce Investment Act (WIA), Trade Assistance Act (TAA), and Veteran's Benefit's Montgomery GI Bill benefits are only used to determine eligibility for the Unsubsidized Stafford Loan).  It is the student's responsibility to notify the Financial Aid Office of any outside scholarships or agency payments.

Subsidized Stafford Loan:  You must have financial need (based on FAFSA results) to qualify for the Subsidized Stafford Loan.  You don't pay interest on a Subsidized Stafford Loan while in school or during grace or deferment periods - the government pays it for you.  Subsidized Stafford Loans disbursed after July 1, 2008 have a 6% fixed interest rate.

Unsubsidized Stafford Loan:  This version of the Federal Stafford Loan is not based on financial need.  The borrower is responsible for all interest charges on an Unsubsidized Stafford Loan from the time the loan is received.  While you are not required to make payments while you're in school or during grace or deferment periods, we recommend that you pay interest quarterly.  Any accrued interest that is not paid will be added (capitalized) to the loan balance when you enter repayment.  Unsubsidized Stafford Loans have a fixed interest rate of 6.8% for loans disbursed on or after July 1, 2006.

Annual Loan Limits:  Federal Stafford Loans for a 12-month period (Fall-Spring-Summer) are:

• $3500 for freshmen
• $4500 for sophomores
• $5500 for students seeking a Bachelor's degree at the junior or senior level.

Grade level is determined by hours earned and not hours attempted; students in one year programs are considered freshmen regardless of attempted hours; students in two year programs may not exceed sophomore level regardless of attempted hours.  Independent students may be eligible to borrow additional Unsubsidized Stafford Loans of up to $6,000 per year at the freshman or sophomore level and up to $7,000 per year at the junior or senior level.  Dependant students may be eligible to borrow $2,000 per year in additional Unsubsidized Stafford Loan funds.

Step 1: FAFSA - Complete the Free Application for Federal Student Aid (FAFSA) and have the results sent to Dalton State College (school code 003956).  You may complete the FAFSA online at www.fafsa.ed.gov.  Indicate on the FAFSA that you wish to be considered for student loans.  Dalton State must have the results of your FAFSA and your application must be complete before we will process a loan application.

Step 2: First-time borrowers at Dalton State College - You may borrow through any Stafford Loan provider; we encourage you to research Stafford Loan lenders.  See "Choosing a Lender" below for more information.  Apply online with the lender of your choice, or use the Dalton State loan comparison list, powered by SimpleTuition, to choose a Stafford lender - www.simpletuition.com/daltonstate.  This comparison tool offers you many ways to compare lenders.  From the Simple Tuition website simply click the apply button by the name of the lender you wish to use.  You will complete the application process and sign your Master Promissory Note (MPN) online.

First-time borrowers at Dalton State College must follow these additional steps:

1) Stafford Loan Entrance Counseling must be completed online at www.mappingyourfuture.org.  From the menu, select Complete Online Student Loan Counseling, then Stafford Entrance.  You will then select Georgia and Dalton State College from pull-down menus.  Staff members in the Office of Student Financial Aid are available to answer questions after entrance counseling is complete.  Students are encouraged to ask questions to ensure full understanding of the Federal Stafford Loan program.

2) Disbursement delay for first-time freshmen - First-time freshmen loan proceeds are disbursed no earlier than 30 days after the first day of classes.

If you have previously borrowed a Stafford Loan at Dalton State College and have been offered a Stafford Loan on your current award letter, indicate on your DSConnect online award letter if you wish to accept of decline the loan, or if you wish to make changes to the loan amount.  Your loan will be certified with your previous lender.  If you have not been offered a loan, but wish to apply, got to the Financial Aid Menu in DSConnect, select Apply for a Stafford Loan, and follow the instructions.

If you wish to use a paper application to apply for a Stafford Loan, please contact the Office of Student Financial Aid at (706) 272-4545 or (800) 829-4436.

After you have completed your part of the process, the office of Student Financial Aid calculates your eligibility for the Federal Stafford Loan based on your FAFSA results, cost of attendance, and other financial aid received.  The office of Student Financial Aid electronically transmits your Stafford Loan eligibility to most lenders.  Once your lender has confirmed your eligibility for the loan, your loan funds are sent electronically to Dalton State.

Dalton State College reports student enrollment status to lenders through the National Student Loan Clearinghouse once a month.

Students are required to go through Stafford Loan Exit Counseling when they graduate or drop below half-time enrollment at Dalton State College.  Exit counseling informs you of the seriousness and importance of your obligation to repay your loans and describes the likely consequences of default.  During exit counseling, you are given information regarding loan indebtedness, repayment options, debt management techniques, and your lender's phone number and address.  Student records are put on a system-wide hold until Stafford Loan Exit Counseling is completed.

When you graduate or don't return at the end of a term, exit counseling information will be mailed or emailed by the Office of Student Financial Aid.  If you withdraw from Dalton State College, you are required to go through Stafford Loan exit counseling in the Financial Aid Office as part of the withdrawal process.  This requirement must be completed before the withdrawal is official and may take up to an hour to complete.

Repayment Period: You have up to 10 years to repay a Federal Stafford Loan.  The minimum monthly payment is $50 per month.  Use the following chart to estimate how much your monthly repayment will be.

Repayment Options: Contact your lender when you have questions about your Stafford Loan or experience problems repaying your loan.  It is in your best interest, as well as your lender's best interest, to keep your loan in good standing.  Some options that might be available to you during repayment are:

Deferment - No payments are due on your Stafford Loan if you are granted a deferment.  If you have borrowed Subsidized Stafford Loans, no interest acrues on these loans during deferment periods.  The most common deferment is for re-enrolling in college at last half-time.  However, there are also deferments for inability to find full-time employment (for up to three years) and economic hardship (for up to three years).  Check with your lender if you have questions regarding deferments or want to apply for a deferment.

Forbearance - If you can't afford to make payments on your student loan, but don't qualify for a deferment, contact your lender regarding forbearance.  If approved, forbearance allows you to postpone repayment for a period of time.  However, interest continues to accrue during periods of forbearance.  Contact your lender if you have questions regarding forbearance or wish to request a period of forbearance.

Student Loan Consolidation - Consolidation allows you to combine all of your federal student loans into one consolidation loan.  You may want to consider consolidation if you send in more than one monthly student loan payment, or want to lower your monthly payment.  Consolidation lengthens your repayment period and reduces your monthly payment.  However, as with any loan spread out over a longer repayment period, you may pay more interest if you take longer to repay the loan.  You may also loose out on some of the benefits offered by your Stafford Loan lender; contact the Financial Aid Office for more information on consolidation.

Consequences of Defaulting on your Federal Stafford Loan:

Failure to repay your loan according to terms disclosed in your master Promissory Note (MPN) results in default.  Student loans go into default when payments are 270 days past due.  To avoid default, contact your lender if you're having trouble making your monthly payment.  They will give you options to keep from defaulting on your loan.

Consequences of defaulting on your federal Stafford Loan are:

• You can be sued for the entire amount of your student loan.
• Your credit rating can be severely damaged, making it difficult to borrow money in the future.
• Your federal and state income tax refunds may be withheld.
• Your wages may be garnished.
• You cannot receive anymore federal or state financial aid unless you make satisfactory arrangements to repay your loan.
• You may be liable for the costs associated with collecting your loan, including court costs and attorney fees.
• YOU ARE STILL RESPONSIBLE FOR YOUR LOAN!

Choosing a Lender

You may borrow through any Stafford Loan provider; we encourage you to research the terms of Stafford Loans provided by different lenders.  Dalton State students borrow Federal Stafford Loan funds through private lenders.  Lenders offer different benefits to Stafford borrowers, so be sure to research these benefits before choosing a lender.  Your Stafford Loan is reduced by fees of up to 2%; this may vary by lender.  We recommend that you use the same lender for each Stafford Loan you borrow.  If you have previously borrowed a Stafford Loan at Dalton State, or through a private lender, at any college, we will continue t use this lender unless you specifically request a lender change in writing.

Possible lenders are listed below.  The Dalton State Financial Aid Office asked lenders to complete a Request for Information (RFI) to be considered for inclusion on Dalton State's lender list.  Responses were reviewed by a lender selection committee in February 2008.  The lender election committee consisted of a business professor, a business student, and the Financial Aid Office's Student Loan Coordinator.  lenders were compared based on factors such as source and stability of loan capital, customer service measures, borrower benefits, and whether loans are sold.  Some of these measures were taken from a survey of Dalton State students which asked them to identify the most important characteristics when choosing a lender.

The websites and customer service telephone numbers are listed below for your convenience.  There is also a summary of the loan fees and benefits offered by these lenders.  You may compare thse lenders through Dalton State's online loan comparison tool, powered by Simple Tuition - www.simpletuition.com/daltonstate.  If you choose to apply with one of the lenders listed simply hit the 'apply' button next to the lender name on the Simple Tuition website and you will be directed to the lender's online loan application and Master Promissory Note (MPN).  Your loan money will be disbursed electronically to Dalton State.

If you choose to use a lender that is not listed here, follow that lender's online application and Master Promissory Note (MPN) process.  If the lender offers an online application, Dalton State should receive your loan funds electronically.  if your lender does not offer an online application process, and the lender does not contract with one for the following guaranty agencies - ASA (American Student Assistance), GSFC (Georgia Student Finance Commission), or NSLP (National Student Loan Program) - you must provide our office with a signed paper Master Promissory Note (MPN).  In this case, your Stafford Loan funds may be distributed by check.