The University of Toledo

Federal Stafford Student Loan Program (Subsidized)

Eligibility - A student must be enrolled or accepted for enrollment at least half-time in an eligible institution of higher education and must be a U.S. citizen, U.S. national or a permanent resident. The student must also be making satisfactory academic progress and demonstrate financial need for consideration. In addition, the student must not be in default on any Title IV loans or owe a repayment on any Title IV funds. Males who are at least 18 years of age must be registered with the Selective Service Agency.

Maximum Amount - Graduate and professional students may borrow up to $8500 per academic year to an aggregate maximum amount of $65,500 including all undergraduate Stafford/GSL loans. A loan may not exceed the cost of education less resources.

Interest - The interest rate, currently, is fixed at 6.8%. Interest begins to accrue from the moment the funds are disbursed, however, the interest is paid by the Federal Government during periods of Grace and Deferment.

Grace Period - Students have a six month grace period after they are no longer enrolled half-time at an eligible institution before repayment begins unless the six month grace period has already been used by the student.

Deferment - Repayment of the loan can be deferred for students who meet any of the following conditions:

- enrolled at least half-time at an eligible institution,

- pursuing a course of study in an approved graduate fellowship program or approved rehabilitation training program for disabled individuals excluding a medical internship or residency program,

- is unable to find full-time employment (maximum of 3 years),

- is suffering from an economic hardship (maximum of 3 years),

- is engaged in service eligible for loan cancellation (e.g. full-time nurse or medical technician, full-time employee of a public or private nonprofit child or family service agency who is providing or supervising the provision of services to high-risk children and their families from low-income communities).

Note: Students who have an outstanding balance on a Stafford/GSL Loan as of July 1, 1993, will retain the deferments originally provided for in their promissory note which includes a two-year residency deferment.

Insurance/Guarantee Fee - An origination fee(maximum 2%) if applicable, will be deducted from each disbursement.  The University of Toledo Foundation's Stafford Loan program pays the origination fee for the borrower.  A guarantee fee (1%) is waived by most guarantors.

Disbursement - Funds are electronically transferred to the school from the lender/servicer in equal installments based on the number of semester terms in the loan period. The Student Financial Aid Office will verify the student's eligibility upon receipt of the funds. A notice is sent to the student informing him/her that the funds have been received and that they will be disbursed to the student's account by the Bursar's Office. First-time borrowers at the University are required to attend an entrance interview prior to releasing the first disbursement.

Refunds - Students eligible for a refund of excess proceeds will be refunded within 14 days from the date a credit balance occurs on the student's account - generally 14 days from the date of disbursement of the funds.

Repayment - Repayment begins six months after the student is no longer enrolled at least half-time and may be made up to a ten-year period. Several repayment options are available to students.