Loans

Loans can be good things and bad things.

Loans are good because they are a type of financial aid available to help you meet your educational expenses so you can graduate as soon as possible. Federal educational loans are very unique. You can borrow up to set limits with no cosigner, no collateral and no credit check, and the application process is simple and straightforward.

Loans are bad because without realizing it, a student can get thousands, even tens of thousands of dollars in debt before graduating. That can make starting a career hard and far less rewarding. Further, you cannot have these loans canceled if you don’t complete your degree or because you’re having financial difficulties.

So if you're looking at borrowing, walk lightly. Borrow only what you really need to get through school. Then all that great money you're planning on making years from now will belong to you instead of the bank!

What is a Stafford Student Loan?

A Stafford Student Loan is a federal aid program. It has a variable interest rate which is reset every July 1. By law, it cannot exceed 6.8%. This loan is in deferment (repayment not required) as long as the student remains enrolled on at least a half-time basis. Once a student is no longer enrolled on at least a half time basis, the Stafford Loan has a six month grace period before it goes into repayment. The monthly repayment amount depends on the total amount of your combined student loans, the length of the payment period and the repayment option which you choose.

For a subsidized Stafford Loan, the U.S. Department of Education pays the interest while you’re enrolled on at least a half-time basis. For an unsubsidized Stafford Loan, the student is responsible for the interest from the time the loan s disbursed until the loan is paid in full. You can pay the interest as you go through school or allow the interest to accrue while you are in school.

The amount of your student loans depends on several variables including your expected family contribution from the FAFSA, other types of financial aid which you receive and your grade level. Depending on eligibility limits, a student might receive a loan which is only subsidized or only unsubsidized or a combination of subsidized and unsubsidized loans.

If you have previous student loans, you may access your individual loan borrowing history at www.nslds.ed.gov.

What is the Application Process?

The process is easy, almost too easy. In order to determine your eligibility for this loan you must first complete a Free Application for Federal Student Aid (FAFSA). Once SWOSU has received your FAFSA data and any other supporting documents which are required, we will notify you of your financial aid award package.  First time students to SWOSU will receive an Award Letter by mail.  You can stop by the Student Financial Services office in the Stafford Building, Room 224 to get a copy of your Award Letter, or call the office to have one mailed to you.  If you are a returning SWOSU student, you will be sent an Email to your Student SWOSU Email account, listing your loan eligibility. Your signed completed Award Letter, once returned to us, will allow us to begin processing your loan.  Please note, we cannot proceed until you return your Award Letter to us.

After returning your Award Letter, “first time” borrowers at SWOSU must complete an on-line loan application, also known as the Master Promissory Note.  You can access the online application at your lenders website, (listed below), and E-Sign the application using your FAFSA PIN#.  You must also complete an Entrance Interview online by choosing the quick link above for “Entrance/Exit Interviews”.

You cannot apply for a student loan until you have completed the FAFSA and received an Award Letter from SWOSU.

When do checks arrive?

You will receive a “Notice of Guarantee and Disbursement” which contains estimated disbursement dates and the amount of your loan check. Stafford Loans have an origination fee of up to 1% which is deducted from the loan amount sent to the school. Loan funds are received via electronic funds transfer and are credited to your account. You must be enrolled at least half-time and making satisfactory academic in order to receive your loan funds. All loans are paid in two parts - half at the beginning of the loan period and half at the midpoint of the loan period. This means for a fall/spring loan the first disbursement will be made during the fall semester and the second disbursement will be made for the spring semester. Money remaining from your loan after your bill is paid is given to you as a refund check from the Business Office within fourteen days.

Where do I find a lender?

Choosing a lender is your opportunity. For your convenience listed below in alphabetical order are the lenders chosen most by SWOSU students in recent years. You are welcome to select any lender, on or off this list, who participates in the federal student loan programs to process your loans.

We know from experience, that all of the lenders shown below process most loans quickly and efficiently. The loan processors offer various options for repaying your loans and incentives for timely repayment. We encourage you to call and discuss their current options with them. . If you need to change due to bad service please let us know what problems you've had. We hold lenders to a strong service requirement.

Your lender provides you the money. The secondary market purchases the loan from the lender usually after the final disbursement or at repayment. You will be notified in writing when this transaction takes place. It has no bearing on the interest rate.

New Students: The following list is for your convenience. You are free to choose any lender you want.
Returning Students: We will process your loan through your current lender unless you advise us that you want to change lenders.

Lender:	ID Code:	Phone	Web Site:
BancFirst	820238	(800) 940-9404	www.bancfirst.com/student.aspx#
Commerce Bank	813979	(800) 666-3910	www.commercebank.com/OKschools
First National Bank of Weatherford	833344	(800) 456-6752	www.osla.org
Stillwater National Bank	809081	(888) 272-5543	www.opennet.salliemae.com
Wachovia	830005	(800) 338-2243	Wachovia.com/education

Lender - provides the money.
Processing Center - keeps track of paperwork and disburses the money.
Secondary Market - purchases loans from lenders either right after the final disbursement or at repayment.