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Loans

What is a subsidized Stafford loan? A subsidized Stafford loan is a federally funded loan that is awarded based on a student’s financial need. The federal government “subsidizes” the interest on this loan while you are in school or in deferment. This loan must be paid in full, including interest, upon exiting school.


What is an unsubsidized Stafford loan? An unsubsidized Stafford loan is a federally funded loan that is not awarded based on student’s financial need. Interest is charged on this loan from the day it is disbursed until it is paid in full. This loan must be paid in full, including interest, upon exiting school.


Can I receive loan funds for Summer Semester? Students who accept all loan funds offered for Fall/Spring or Spring only may not have additionalfederalloan funds available for Summer Semester.


Where can I find information on the new Georgia Student Access Loan (SAL) Program? Information can be found on the Georgia Student Finance Authority website.


Is there a fee for a Stafford loan? Yes.

For Subsidized and Unsubsidized loans, if the disbursement date is on or after October 1, 2019 and before October 1, 2020, there is a 1.059% fee that is deducted from each disbursement. For Federal Plus loans, if the disbursement date is on or after October 1, 2019 and before October 1, 2020, there is a 4.236% fee that is deducted from each disbursement.

For Subsidized and Unsubsidized loans, if the disbursement date is on or after October 1, 2020 and before October 1, 2021, there is a 1.057% fee that is deducted from each disbursement. For Federal Plus loans, if the disbursement date is on or after October 1, 2020 and before October 1, 2021, there is a 4.228% fee that is deducted from each disbursement.


Do I have to complete the Free Application for Federal Student Aid (FAFSA) before I can apply for a private loan? If you only wish to receive a private loan, you do not have to complete the FAFSA but you must complete the Private Loan Agreement Form. Please note that if you wish to be considered for federal financial aid such as grants and subsidized or unsubsidized student loans, you must complete the FAFSA for the appropriate academic year.


What do I have to do to get my loan funds? All borrowers, new or continuing, must complete these steps to receive a Federal Direct Loan:

  1. Complete the FAFSA for the appropriate academic year and supply any requested documentation.
  2. After receiving your award letter, be sure to follow instructions to accept your loan award.
  3. Complete the Direct Loan Master Promissory Note (MPN)
  4. CompleteStudent Loan Entrance Counselingif required.

Do I need to be in a specific number of hours to qualify for a loan? Yes. Undergraduate students must be attending in at least 6 or more credit hours to qualify to receive a student loan. Graduate students must be attending in at least 5 or more credit hours to qualify to receive a student loan.


What do I need to do to get an in-school deferment form sent to my lender? You do not need to do anything. The Registrar's Office automatically notifies National Clearinghouse three times each semester of a student's enrollment. The first notification will be sent approximately two weeks after the semester starts.


What happens to my loan funds if I am enrolled in mini session classes? You will not be eligible to receive your loan funds until you are currently attending in at least 6 credit hours. (For example, if you are enrolled in a 3 credit hour class for the full session and a 3 credit hour class for the second-half mini session you will not be eligible for your loan funds until the mini session has begun.)


I am transferring at the end of Fall Semester to another institution but I already have loans in place for Spring Semester. Will that loan transfer to my new school? No, financial aid does not transfer from one institution to another. You must reapply for aid at your new school. You must also request that your current school cancel your loan for Spring Semester. The new school will not be able to certify a loan for you if you have pending disbursements at your current school. More information is available on our website regarding financial aid for transfer students.


What is the interest rate? For loans first disbursed on or after July 1, 2020 and before July 1, 2021

  • Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students- 2.75 %
  • Direct Unsubsidized Loans for Graduate and Professional Students- 4.30 %
  • Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students- 5.30 %

For more information on interest rates, please visit: https://studentaid.gov/understand-aid/types/loans/interest-rates


Is there a limit to the length of time I can receive a Subsidized Stafford Loan? Yes. Effective July 1, 2013, first time borrowers are limited to a maximum period of time (measured in academic years) that they can receive Direct Subsidized Loans. Eligibility is limited to 150% of the length of your academic program. More information on the 150% Loan Limit can be found here.


How much can I borrow? You can find the annual and aggregate (lifetime) loan limits here. However, please refer to your award letter to determine how much you are eligible to borrow.


What is a Parent PLUS loan? Parent PLUS loans are for dependent students. These loans are the financial responsibility of the parents, not the student. Eligibility for the PLUS loan depends upon a credit check for the parent.


What can I do if my parents are denied a PLUS loan? If your parents are denied a Parent PLUS loan, you may be eligible for increased unsubsidized Stafford Loan funds.


What can my loan money be used for? Any expenses incurred as it relates to your education. This can include, but is not limited to, tuition, fees, books, supplies, rent, etc.


When is my money disbursed? You will disburse your funds towards your fees by running “How Much Do I Owe?” on the DUCK. If your loan is guaranteed before the fee payment deadline date it can be applied towards your tuition. However, any residual funds are not refunded to you until after the semester begins and drop/add has ended.


When do I have to pay my loan back? Repayment will start six months after you graduate, leave school or drop below half time enrollment. Your loan must be paid in full, including interest, upon exiting school.


What repayment options do I have if I previously defaulted on my student loans? Repayment option for previously defaulted student loans can be found here.


What if I only want the loan for one semester? Loans are typically awarded for two semesters at a time. However, loans can be awarded for one semester by completing the Loan Revision Form which can be found on our website under the "Forms" tab for the appropriate aid year. Please allow up to three business days for all requests to be processed.


I no longer need the loan that I accepted on the DUCK. What do I do? You will need to complete theLoan Revision Formwhich can be found on our website under the "Forms" tabfor the appropriate aid year. Please allow up to three business days for all requests to be processed.


I am transferring to another school and have a loan for next semester. How can I cancel the remainder of my loan at Clayton State? You will need to complete theLoan Revision Formwhich can be found on our website under the "Forms" tabfor the appropriate aid year. Please allow up to three business days for all requests to be processed.


I accepted too much of my loan funds on the DUCK. How can I reduce the amount? You will need to complete theLoan Revision Formwhich can be found on our website under the "Forms" tabfor the appropriate aid year. Please allow up to three business days for all requests to be processed.


I previously requested to have my loans cancelled but now I see that I need the money. What can I do? You will need to complete the Loan Revision Form which can be found on our website under the "Forms" tab for the appropriate aid year. If your previous request to cancel the loan occurred within the last seven days, we will be unable to process the request until after that time period. Please keep in mind once loans are reinstated, we will be unable to cancel loans a second time. 


My loan is for 2 semesters but I am graduating, what should I do? If your loan award is for Fall/Spring and you are graduating Fall, you will need to complete theLoan Revision Formwhich can be found on our website under the "Forms" tabfor the appropriate aid year so your eligibility for your final semester of enrollment can be determined. You must wait until after you register for your courses because your award must be prorated based on your final enrollment.


My loans have been cancelled or reduced on the DUCK, but I did not request the change. Can I complete the Loan Revision Form to have the loans corrected? No, you will need to contact the Office of Financial Aid to see why your eligibility changed and why we had to cancel or reduce your loans.


I previously cancelled my loan because I thought I was graduating, but I did not. What do I need to do? You will need to provide to your financial aid counselor either a copy of your graduation summary showing the courses remaining for graduation or a statement from your academic advisor showing the courses remaining for graduation to determine any remaining eligibility.


How long does it take to process my request? It can take 3 to5 business days for the Financial Aid Office to process your loan application and transmit the information to the Department of Education. Please allow additional time for loan requests to be processed during peak times.


Do I have to complete a Master Promissory Note (MPN)? You must sign a new Direct Loan Master Promissory Note if you have not previously borrowed in the Direct Loan Program. This can be done at the same time you accept your loans on the DUCK by clicking the link for the Master Promissory Note (MPN). You can complete the Master Promissory Note at https://studentaid.gov/mpn/.


Do I need to complete Entrance Counseling? You must complete Loan Entrance Counseling if: 1. You are a first time borrower at Clayton State, and you are required to complete Direct Loan Entrance Counseling. 2. You previously completed an older version of student loan entrance counseling under the Federal Family Loan Program (FFELP) and have not completed the online Direct Loan Student Loan Entrance Counseling at https://studentaid.gov/app/counselingInstructions.action?counselingType=entrance


Is Financial Aid Awareness Counseling the same as Student Loan Entrance Counseling? No, Financial Aid Awareness Counseling is an option for counseling that the Department of Education offers students. Student Loan Entrance Counseling is mandatory and required before loan funds can be released to a student.


What happens after I accept my loans on the DUCK? Your request will be transmitted to the Department of Education. You will need to sign a new Master Promissory Note (MPN) at https://studentaid.gov/mpn/ and complete Entrance Counseling at https://studentaid.gov/app/counselingInstructions.action?counselingType=entrance


Where can I find information on who services my federal loans? Information on all of your federal loan debt, FFEL & DL, can be accessed at https://studentaid.gov/h/manage-loans.