Federal Direct Stafford Loan
Loan eligibility is determined by the Office of Financial Aid.
- Completed FAFSA is required before student loan eligibility can be determined.
- The Office of Financial Aid will send by mail an Award Letter package indicating your loan eligibility.
- Required loan documents will be provided in the package and must be returned to the Office of Financial Aid for loan processing.
- Online Counseling and Master Promissory Notes are also required for all loan processing.
Loans require repayment
- Detailed information about repayment of federal loans, including borrower’s rights and responsibilities, is available in The Student Guide .
- You have the right to cancel all or a portion of your federal loans. Instructions are stated on your promissory note.
Enrollment Requirement
- To receive Federal Direct Loans you must be enrolled at least half time and meet the current Southwest Baptist University Satisfactory Academic Progress Policy.
- Undergraduate level; 6-11 credit hours a semester is half time and 12 or more credit hours a semester is full-time.
- Graduate level; 3-5 credit hours a semester is half time and 6 or more credit hours a semester is full-time.
Direct Stafford Loans
Direct Stafford Loans are for both undergraduate and graduate students.
- Subsidized – This loan is awarded on the basis of financial need. The student does not make any payments nor pay interest while enrolled at least half time; the federal government "subsidizes" the interest during this period of enrollment. Interest charges and repayment of principal begin six months after the student leaves school or drops below half-time enrollment.
- Unsubsidized - This loan is not based on financial need. The student is responsible for the interest from the date of disbursement. Interest payments may be made in installments or allowed to accrue and be added to the principal (capitalized). Repayment begins six months after the student leaves school or drops below half-time enrollment.
Requirements for Direct Stafford loan processing
- Completed Direct Student Loan application (included in Award Package) returned to Southwest Baptist University, Office of Financial Aid.
- Completed Master Promissory Note (MPN) and Entrance Counseling.