The Federal Stafford Loan Program was created to make long-term, low interest loans available to students to assist in financing their educational expenses. This is an entitlement program. All students who otherwise meet the eligibility requirements may borrow Stafford loans. Eligible lending institutions, such as commercial and savings banks, insurance companies, credit unions, and savings and loan associations, use private capital to make these loans. State or non-profit agencies guarantee the loans, and the federal government reinsures them under the Guaranteed Agency Program.
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Important Facts
Eligible law student may borrow up to $20,500 per academic year. The interest on amounts up to $8,500 per year may be subsidized by the federal government dependent upon demonstration of sufficient financial need by the borrower. Amounts in excess of the student's computed financial need are unsubsidized and loans disbursed on or after July 1, 2006 accrue interest at a fixed rate of 6.8%. Stafford loans disbursed before July 1, 2006 will carry a variable rate based on the sale of 91-day Treasury bill indexed on July 1. The variable rate will not exceed 8.25%. Aggregate total borrowing in the Stafford Loan Program cannot exceed $138,500.
Students wishing to apply for the Federal Stafford loan must submit a Free Application for Federal Student Assistance (FAFSA) to determine eligibility for the federal subsidy and complete a Master Prommissory Note for a Federal Stafford Loan if borrowing for the first time at Widener or changing lenders.
Students are free to select any lender they chose. Students are encouraged to carefully review the provisions of the loan programs and what each lender is offering to insure that the loan will fit their needs before incurring additional obligations.
Lender Information
The Stafford Loan program contains mandatory origination and default fees which must be paid to borrow through the program. Prior to January, 2008, most lenders and guarantors participating in the program paid those fees as an incentive to borrowers to select their loan product. Due to recent legislation and current market conditions, most lenders and guarantors are no longer paying the fees for the students.
While it is not Widener’s policy to recommend one lender over another, the University has compiled a list of lenders and lender codes our students used in the 2008-2009 academic year to finance their federal loans. This list is not exhaustive and students are encouraged to do their own research and select a lender of their choice. Borrowers are free to select any lender they choose including those not listed.
For additional information, we recommend that you investigate the lender's website. Another source of information is American Education Services/Pennsylvania Higher Education Assistance Agency (AES/PHEAA) www.aessuccess.org. This organization is the designated guarantor for the state of Pennsylvania and Delaware. Please be aware that most credit unions will not lend to individuals who are not members.
2008-2009 Stafford Lenders List (.pdf)
Packaging/Certifying Loan Requests Widener Law’s Financial Aid Office certifies the majority of our student’s request for Stafford Loans electronically. We are connected to most lenders and guarantors in the country so we should receive your certification request from your lender or guarantor shortly after you have completed your Master Promissory Note for the Federal Stafford Loan Program. If you have a concern or want to notify us yourself that you have completed the application, please feel free to contact us via email at :
Delaware Campus
lawfinaide@mail.widener.eduHarrisburg Campus
lawfinaidhb@mail.widener.edu