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"I have received my Award Letter from the schools. How do I apply for a student loan?"
Your Award Letter lists the different financial aid you are eligible for. In many cases, the school will list the Federal Stafford loan eligibility, but will not include additional options that may be available. If you find that your financial assistance will not meet your cost of education, contact your financial aid officer to see if there are other options! For instance, if you are a dependent student, your parents may be able to apply for a Parent Loan For Undergraduate Students (PLUS).
The Federal Family Education Loan Program is comprised of several different student loans. To apply for these loans, carefully follow the instructions provided with the Award Letter. Student loan application occurs in different ways. Following are a couple of examples:
- You receive the Award Letter. You return the Award Letter to the school confirming the financial aid amount that you will accept, and you indicate your choice of lender. The school will then electronically submit your student loan data to a guarantor who will print the student loan promissory note and mail it to you for completion of signature and references.
- Your school provides you with a promissory note along with the Award Letter and instructs you to complete and return the form to them. They will then complete the process by filling out a school certification form and provide it to your lender along with your promissory note.
Refer to the list of available lenders and their codes.
When you sign a student loan promissory note, you promise to pay the full amount of the loan, plus interest. It is the legal document that describes the terms and conditions of your loan, including the amount you are borrowing, interest rate you will pay, and when you must begin repayment.
There are instructions for the Federal Stafford Loan Master Promissory Note and the PLUS Loan Application /Promissory Note. When completing the forms, it's important to remember that processing of your application may be delayed if any item in the borrower's section is left blank! Note: Your student loan application promissory note may already be partially completed with data provided by your school. If so, please review and make any corrections to the information and complete any blank items in the borrower's section.
The loan amount you receive will be the lesser of what you request, or what your school and lender find you eligible to receive. The Notice of Loan Guarantee and Disclosure Statement will specify the final loan amount.
If you have borrowed what is available to you in the Federal Subsidized Stafford and Unsubsidized Stafford loans, and still need additional funds to pay for college expenses, you may be eligible to borrow through the Dakota Education Alternative Loan Program (DEAL).
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