Federal Stafford Loans: 

The Federal Stafford Loan Program consists of subsidized and unsubsidized loans. Repayment of these loans may be deferred while you are attending the university on a half-time or full-time basis.

The subsidized loan is awarded according to demonstrated financial need. Interest is paid by the federal government as long as you are enrolled at least half-time at the university and during your six month grace period. Repayment of the loan begins at the end of the six month grace period after leaving school or dropping below half-time.

The unsubsidized loan is awarded regardless of demonstrated need. Interest begins accruing from the date of disbursement. By making interest payments while in school, capitalization of the interest can be avoided. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.

Stafford Loan Limits:

Dependent undergraduate students enrolled in a degree-seeking program may borrow per year up to:

• $5,500 as a freshman
• $6,500 as a sophomore (at least 30 credit hours earned)
• $6,500 as a junior or senior (at least 60 credit hours earned)
• Maximum amount allowed to borrow while in school: $25,000

Independent undergraduate students and dependent students whose parents have been denied access to a Federal PLUS Loan may borrow per year up to:

• $7,500 as a freshman ($3,500 of which may be subsidized loans)
• $8,500 as a sophomore ($4,500 of which may be subsidized loans)
• $10,500 as a junior or senior ($5,500 of which may be subsidized loans)
• Maximum amount allowed to borrow while in school: $46,000

Graduate students are generally allowed to borrow up to $18,500 each academic year of which $8,500 may be in subsidized loans.

Finish the Application Process:

After you have received your award letter from the Student Financial Services office, your Stafford loan will be processed quickly and efficiently by following the procedures below:

1. Go to Loans By Web
2. Click 'I am an undergraduate student borrower'
3. Check the box next to 'I agree to supply my social security number'
4. Enter your SSN and Date of Birth in the format shown below each field
5. Click on 'Login'. You will be given three choices: 'Complete a Loan Award', 'Decline a Loan Award', or 'Reprint or E-sign'
6. Click on 'Complete a Loan Award'. 
7. The next page shows the applications that ACU has certified for you. Click on the blue button labeled 'Begin' to complete the first step.
8. The first step will be the entrance counseling page. Federal regulations require completion of entrance counseling before your loan can be disbursed. 
9. The second step is to complete the loan award process. You are required to complete a Master Promissory Note (MPN) and choose a lender. Choosing one of our preferred lenders will expedite the processing of your student loan. Note: You do not have to have an account with a bank in order to receive a student loan from that bank.
10. After successfully completing your Master Promissory Note, you will see the message 'Congratulations, your loan has been guaranteed'
11. You will then be prompted to either print the promissory note packet or sign electronically with your FAFSA PIN. If you choose to print the note, sign and date the MPN and mail it to the address listed on the cover sheet. Note: Do not mail the note to Abilene Christian University. This will only delay processing.

ACU's Preferred Stafford Lender List:  All the lenders on this list offer the same interest rate which is regulated by the federal government. The difference is that each lender offers their own repayment incentives. You may visit each lender's website to make an informed decision.

The Last Steps:

Stafford Loan Exit Counseling: Each student who ceases to be enrolled at least half-time must complete exit counseling. Exit counseling will explain the seriousness of repayment of the loan, consequences of default, available repayment options, deferment or forbearance options, and will gather current and expected contact information. A transcript hold will be placed on each student's account until confirmation of completed exit counseling has been received. Click on the following link to complete Stafford Exit Counseling.

Avoid Default: Please keep your address current with your lender. Be proactive. Contact your lender with any questions you have about repayment, forbearance, or deferment. Learn more about managing your loans and finances here.