Financial Aid
Educational Loan Information

~ What you should know about your borrower rights and options ~

Where do I start?  How do I compare my options?  What are the best educational loans for my situation?

If you haven’t already asked yourself these questions, you should be thinking about them now.  Once you have completed the financial aid application process, your award notification letter from St. Lawrence may contain one or more educational loan options.  Provided below is some information on these educational loan options, as well as St. Lawrence University’s Lender Resources lists.  Make sure you carefully read all of the details pertaining to the various loan options and the details from each lender’s product.  We recommend that you review and compare all of your financing resources to ensure you are selecting the best choice for your needs.

You should always review your options for grants and scholarships as well as your own resources prior to borrowing to pay for your education.  If you do need to secure an educational loan, you should always explore Federal educational loans first.  Federal PLUS loans, for example, often have better rates than alternative loans. 

St. Lawrence University recommends that our students and parents always exhaust Federal student loan options before considering a private loan. The US Department of Education provides some additional information on the differences between Federal and private loan programs in their new brochure: Federal Aid First

Loan Processing Information:
First Time Borrowers of Stafford
Prior Stafford Borrowers
Federal Perkins Loans
 
WHAT TO EXPECT AS A BORROWER:
Federal Stafford Student Loans
Federal Parent Loans for Undergraduate Students (PLUS)
Federal Perkins Loans
Alternative Student Loans
Federal Graduate PLUS Loan Program (GradPLUS)

Federal Stafford Student Loans (Top)
St. Lawrence University participates in the Federal Stafford Student Loan Program. Federal Stafford Loans are low interest loans that may be subsidized (need-based) or unsubsidized (non need-based). The interest rate on a Federal Stafford Loan is usually better than many of the non-Federal alternative student loans and has a fixed interest rate.  For the 2008-2009 academic year the interest rate for subsidized Federal Stafford Loans for undergraduate students is 6.0%.  All other Federal Stafford Loans will have a fixed interest rate of 6.8% (this includes all Federal Stafford Loans for graduate students and unsubsidized Stafford Loans for undergraduate students).

For students that were offered, and subsequently accepted, a Federal Stafford Loan as part of their financial aid package, the application process is straight forward. The Federal Stafford Loan application process begins prior to the start of the fall semester. Students may apply for their Federal Stafford Loan through the lender of their choice; St. Lawrence University provides you with a few options by clicking here: Federal Stafford Loan Lender Resource List.  Most education lending agencies participate in the Federal Stafford Loan program. St. Lawrence will accept applications from any lender a student chooses. As part of the application process students will need to sign a Master Promissory Note (MPN), a legal agreement to repay the loan(s). The MPN is a multi-year promissory note, good for ten years and will cover all Federal Stafford Loan disbursements while a student is at St. Lawrence University (as long as the student continues to borrow through the same lender).

Each year, your Financial Aid Award letter will notify you of your eligibility for a Federal Stafford Loan. Interest does not accrue on a subsidized Federal Stafford Loan; interest does accrue from the date of disbursement on an unsubsidized Federal Stafford Loan. Repayment on both loan types is deferred while a borrower is an enrolled student on at least a half time basis. A borrower may choose to pay interest on an unsubsidized loan while in school.

What to expect as a borrower: (Top)
First Time Borrowers:
New York Higher Education Services Corporation (HESC) is the loan guarantee agency used by most St. Lawrence University borrowers. They guarantee that a lender will be paid, should the borrower default on a student loan (when no payments are made for at least 270 days). HESC will receive the loan origination record from the St. Lawrence University's Financial Aid Office. E-mail notification is sent to borrowers instructing them to complete the Master Promissory Note (MPN) online at the following link: www.hesc.org (follow the Students, Families, and Counselors link to e-sign your Federal Stafford Loan MPN).

Please note: If you would like to utilize a Guarantee Agency other than NY HESC to guarantee your Federal Stafford Loan, please contact the St. Lawrence University Financial Aid Office for further information.

As a condition of receiving your first Federal Stafford Loan, all first time borrowers must complete student loan "entrance counseling". Entrance counseling needs to be completed on-line at www.mapping-your-future.org. Note, once you complete your MPN on-line at www.hesc.org, you will automatically be directed to www.mapping-your-furture.org. Per Federal regulations, Federal Stafford Loan proceeds will not disburse until this entrance counseling session is completed. This entrance counseling session will inform the borrower about the overall Federal Stafford Loan program and their rights and responsibilities. St. Lawrence University will receive the results of this completed session electronically.

Loan Disbursement Dates: Funds are disbursed to St. Lawrence University on the scheduled disbursement date(s) set by the Financial Aid Office in accordance with Federal regulations. Loan funds will be sent electronically to St. Lawrence University, and the borrower's student account will be credited with the proceeds. The Student Financial Services Office will send the borrower notification when the loan proceeds have been credited to their student account. If a student borrower should decide that they do not want these loan funds or a portion of them, the borrower must notify the Student Financial Services Office at sfs@stlawu.edu. Loan funds may disburse 10 days prior to the start of classes.

Quarterly and upon request: Interest statements will be sent to the borrower from the lender.

60 days prior to graduation date: The borrower will receive student loan exit counseling information from the St. Lawrence Student Financial Services Office. Exit counseling, like entrance, is a federal requirement for Federal Stafford Loan borrowers prior to their repayment and may be completed at www.mapping-your-future.org

45 days before repayment begins: A repayment schedule and Truth-in-Lending Disclosure Statement will be sent to all Federal Stafford Loan borrowers from the lender. This will outline the amount of Federal Stafford Loan(s) borrowed, current interest rate, contact information, repayment schedule of the loan, and other pertinent information.

Federal Parent Loans for Undergraduate Students (PLUS) (Top )
A PLUS loan is a Federal loan that is an option for parents of undergraduate students who are attending school. The PLUS loan is in the parent's name and enters repayment within 60 days of the second disbursement of the loan.  A credit check is required for a PLUS loan. The interest rate on a PLUS loan is usually better than many of the alternative student loans and currently has a fixed interest rate of 8.5 percent set by the Federal government.

For parents who wish to apply for a PLUS Loan, the process is straight forward. During the summer or throughout the academic year, parents may request a PLUS Loan application from a local lender or apply on-line with one of the lenders on our PLUS Lender Resources List. Most education lending agencies participate in the Federal PLUS Loan program. St. Lawrence University will accept applications from any lender a family chooses. Parent(s) interested in borrowing a PLUS loan should contact the lender of their choice and follow the lender's application process. In many cases, this will involve a simple pre-approval process either via the internet or phone. Parent(s) must then complete the application and Master Promissory Note (MPN). Most lenders have the MPN available on the web site with the ability to "e-sign" the note. Once a borrower has completed and returned the MPN to their lender, St. Lawrence University will be notified and asked to complete the school section for certification.

Students who are not recipients of need-based financial assistance are still required to file a Free Application for Federal Student Aid (FAFSA) if they wish to utilize the Federal PLUS Loan program due to compliance regulations. The FAFSA can be completed electronically at www.fafsa.ed.gov . Please remember to include our Federal school code, 002829, on your FAFSA application.

Federal Perkins Loans (Top )

Perkins Loans are Federal loan funds awarded to students through St. Lawrence University. The Federal Perkins Loan accrues no interest while the student in is college at least half time. Loan proceeds are applied directly to a student's billing account. Perkins Loans have a 9 month grace period. These loans are limited and are awarded to the high need students.  St. Lawrence University is the lender of the Federal Perkins Loan and University Accounting Service (UAS) is the loan service provider. The Federal Perkins Loan application process is email interactive.

  • The student borrower will receive an email at their St. Lawrence University email address from SignMyLoan@osioutsourcing.com requesting that they complete their loan counseling, review their rights and responsibilities, and electronically sign for their master promissory note.
  • The student borrower must use their FAFSA PIN or obtain an authentication PIN from UAS in order to complete the e-signature process. To receive a UAS generated PIN, the borrower should follow the link and directions provided in the email and wait for the response email in order to complete the PIN generation and receipt process.
  • After the borrower has received their PIN, or has their FAFSA PIN, he/she should follow the link provided in the initial email to complete the loan counseling, review their rights and responsibilities, and electronically sign their master promissory note.

The direct link to complete the Federal Perkins Loan application process is https://www.signmyloan.com . Borrowers may contact UAS directly at 1-800-999-6227 for questions or problems with the loan application process.  Additionally, Perkins Loan borrowers can contact Linda Peets in the Student Financial Services Office for assistance at lpeets@stlawu.edu or 315-229-5422.

Additional information about the Federal Perkins Loan program may be found at studentaid.ed.gov . Additional information about UAS may be found at www.uaservice.com .

Alternative Student Loans (Top )

There are a number of Alternative Student Loans available for families seeking additional financing options. Alternative Loans are non-Federal loans that are in the student's name, and in many cases, require a co-signer. St. Lawrence University encourages parents to first consider the Federal PLUS Loan to cover any outstanding educational expenses prior to considering an alternative loan. In general, a PLUS Loan provides better interest rates and more flexible repayment options as well as options for loan cancellation that are not offered by most alternative loan products. If you wish to apply for the parent PLUS Loan please refer to our Federal PLUS Loan Lender Resources List for more information.

Should you decide that an alternative loan is the right option for you, please visit our Alternative Student Loan Lender Resources List for some suggestions. You will need to apply online or over the phone, and once you have been approved and have completed your promissory note, the Financial Aid Office will certify your application. Some lenders offer borrower benefits that reduce your loan balance or lower your interest rates. You should visit their websites for more information. Please keep in mind that it is your decision on what loan product you decide to use.

Federal Graduate PLUS Loan Program (GradPLUS) (Top)
A GradPLUS loan is a Federal loan that is available to graduate and professional students as a practical option to alternative loans. A credit check is required for a GradPLUS loan. The interest rate on a GradPLUS loan is usually better than many of the alternative student loans and has a fixed interest rate of 8.5 percent set by the Federal government.

For students who wish to apply for a GradPLUS Loan, the process is easy. During the summer or throughout the academic year, students may request a GradPLUS Loan application from the lender of their choice or apply on-line with one of the lenders on our GradPLUS Lender Resource List.Most education lending agencies participate in the Federal GradPLUS Loan program. St. Lawrence University will accept applications to any lender a borrower chooses. Students interested in borrowing a GradPLUS loan should contact the lender of their choice and follow the lender's application process. In many cases, this will involve a simple pre-approval process either via the internet or phone. Students must then complete the application and Master Promissory Note (MPN). Most lenders have the MPN available on the web site with the ability to "e-sign" the note. Once a borrower has completed and returned the MPN to their lender, St. Lawrence University will be notified whether or not the loan is approved. If the loan is approved, and the application and MPN are completed, St. Lawrence University will complete the school section for certification.