Federal Stafford Loans by Web

Your “Financial Aid Award Notification” may list eligibility for the Subsidized and/or Unsubsidized Stafford Loan program(s). The Stafford loan is a federally guaranteed loan provided by a participating lender, such as a bank or a credit union. Therefore, there is no credit check required to receive a Stafford loan. To be eligible for a Stafford Loan you must be enrolled  at least half-time and you must complete the Free Application for Federal Student Aid (FAFSA) at this website.  

If you are searching for a lender to choose, you can view them from the preferred lender list found on the Preferred Lender List.  

• This loan is provided by a participating lender such as a bank or credit union. The interest rate is fixed at 6.8%. An orgination/guarantee fee of approximately 3% will be deducted from the amount borrowed, so your account will be credited with 97% of the loan amount awarded. Some lenders are offering zero origination fees. You can view them form the preferred lender list found on the Preferred Lender List.
• The annual loan maximums for dependent students are $3,500 for freshmen (completion of 0-29 hours), $4,000 for sophomores (completion of 30-59 hours), $5,500 for juniors and seniors (completion of 60 hours or more). Independent students may borrow additional unsubsidized Stafforod Loans of $4,000 for freshmen and sophomores, and $5,000 for juniors and seniors.
• For the Subsidized loan, the federal government pays the interest for as long as you are enrolled at least half-time and through five months of your six-month grace period. The Unsubsidized loan is available if you do not demonstrate financial eligibility for the Subsidized loan as determined by the results of your completed FAFSA; therefore, you are responsible for accrued interest during enrollment periods and the grace periods.

Link to the calculators http://www.adventuresineducation.org/calculators/loan/index.cfm.

McMurry University participates in the Loans by Web program through Texas Guaranteed Student Loan Corporation. In order to process your Stafford loan, please go to the https://lbw.tgslc.org web-site and follow the instructions below.

New Students

• Please print the 2 copies of the Master Promissory Note (MPN), sign and mail one copy to your lender at the address provided. Please retain the other copy for your records. Once you have completed your application on the web, signed it and mailed it to your lender, McMurry will receive a notice of guarantee. You may deduct the amount of your Stafford Loan from your invoice for registration charges if you have completed these steps.

* All new students participating in the Subsidized/Unsubsidized Stafford Loan Program must complete pre-loan counseling through the Loans by Web process. This process is critical as information regarding your Stafford Loan is updated regularly.

Note:

1. During peak times it takes approximately six weeks to process loans. If your funds do not arrive by the date designated for financial settlement, you will need to settle your account and be reimbursed when funds arrive. Any open account balance will be subject to 1.5% per month service charge. To make certain loan funds arrive on time to avoid any service charges, complete all loan related procedures and materials by July 1 for the Fall Term and December 1 for the Spring Term.

2. Disbursement of loan funds will be credit to the student's account after the 8th class day provided the student has completed all paperwork prior to July 1 for Fall disbursement and Dec. 1 for Spring disbursement.

3. Disbursement of loan funds for first semester freshmen will occur 30 days after classes begin pending all paperwork is completed in a timely fashion.

4. All loans must have two disbursements. For example, if a student is attending only in the fall semster (for graduation or other purposes) and wishes to receive loan funds, federal regulations require that half of the funds arrive on the students account in two seperate disbursements. Pending the timely completion of required paperwork, the initial disbursement typically arrives during the first month of classes. The second disbursement follows the mid-point of the semester. For students attending Fall and Spring, the first disbursement will occur in the fall and the second in the spring.

How to Choose a Lender

Selecting a lender is an important decision. For many students this will be their first exposure to commercial lending. As with any debt, the student borrower is responsible for repaying the loan-in full- even if the student did not complete school, cannot get a job, or feels that he or she did not receive the educational or other services purchased. Failure to make regular monthly payments could result in a defaulted student loan. So, choosing a lender wisely is an important step in taking out a student loan. For information on how to chose a lender visit: www.tgslc.org or contact the Financial Aid Office as you will want to consider many factors when deciding which lender to use.