Stafford Loan Information Page

Save yourself money, time & frustration!

• Pursue all other alternatives first
• Budget before you borrow
• Estimate anticipated level of debt for your entire program of study
• Know manageable levels of debt, never borrow more than absolutely necessary
• Know the players in the student loan process and their language
• Know the effects of multiple borrowing
• Take the time now to make the right decision; you can save money, time and frustration
• Borrow wisely!

Important Loan Facts at Yavapai College...

Loan Eligibility Requirements

• You must be seeking a degree or certificate.
• You must be enrolled at least half-time (6 credits or more).
• Your loan must be used for educational expenses including tuition, books, and living expenses while you are attending college.
• You must have completed the Free Application for Federal Student Aid (FAFSA) process before your loan application will be reviewed.

Application Requirements

• You must complete a Stafford Loan Request and submit it with your loan application (Available in the Financial Aid Office).
• First-time borrowers at Yavapai College must complete online & in-person Stafford Student Loan Entrance Counseling prior to the receipt of your first student loan payment.
• When you graduate, leave school, or drop below half-time enrollment at Yavapai College you must complete exit counseling. A hold will be placed on all your records until exit counseling is completed.

Loan Payment Information

• If you are a first-time borrower and have not completed the first year of your degree or certificate program, federal regulation requires that your first check be issued 30 days after the beginning of the semester.
• All student loans are issued in multiple payments based on the loan period as follows: If you are applying for a fall and spring loan, half will be paid at the beginning of the fall semester and the second half will be paid at the beginning of the spring semester. If you are applying for a fall only, spring only or summer only loan, half will be paid at the beginning of the semester and the second half at the mid-point of the semester.
• If you receive the maximum loan amount during the fall and spring, you may not be eligible for funding in that program for the summer semester.
• You are responsible for picking up your loan proceeds at the Cashier's Office. Checks not picked up within 30 days of the disbursement date will be returned to your lender.

Deferment of Tuition

• You may have fees deferred against your loan check, provided that the Financial Aid Office has received an approval from the lender that your loan application has been guaranteed.
• You may be allowed to purchase books against your student loan check if:

Disbursement of Student Loan Checks

• All debt owed to the college will be deducted before balance checks are disbursed. If the amount of your loan proceeds does not cover your obligation, in full, you will be responsible for paying the balance to the Cashier’s Office.
• Loan checks will be disbursed within 14 days after we receive them from the lender. Disbursement is contingent on your file being complete and your enrollment status.
• Students have the option to pay their fees prior to receiving their loan check.

Application Deadline Dates

What Happens Next?

• You will be sent a revised award letter from Yavapai College detailing your loan eligibility.
• You will be sent a notice of loan guarantee and disclosure statement from your lender.
• Your student loan proceeds will be sent to Yavapai College after the lender has received a completed application/promissory note from Yavapai College.
• Refer to the “Disclosure Statement” received from your lender; it indicates a date the lender intends to send the funds to Yavapai College (Note: this is not the date the student receives money).

How to choose a lender

Federal guidelines regulate the primary features of the student loan programs, such as interest rates and repayment terms. However, there are differences in the services that lenders provide. It is not necessary to have a prior relationship with a lender to borrow a student loan. It may be best to choose a lender that specializes in educational lending since it can provide you with the best service. The following questions may assist you in determining which lender meets your qualifications.

For our Suggested Lender List, click here. 

Do Lender Policies Differ?

Yes. Some lenders retain ownership of your loan throughout the life of the loan. Others may sell your loan and immediately transfer to another holder, called a secondary market. The terms of the loan will always remain the same, but you make payments to the new holder. Ideally you want a lender that collects its own loans or sells to only one secondary market. If a lender sells its loans to different secondary markets, you may have to make monthly payments of at least $50 at repayment to each secondary market that holds one of your loans. Avoid this by finding out if your lender sells its loans and to whom.

Do All Lenders Have the Same Repayment Policies?

No. Lenders offer a variety of different repayment options and some even reward students who demonstrate excellent repayment practices by reducing the interest rate on the loan. Again, check with your prospective lender for their repayment options.

What is a Servicer and How Does It Affect Me?

Some lenders service your loan account themselves when you are in school and contract with outside agencies to service your loan account when you enter repayment. Others use servicers while you are in school as well as in repayment. You communicate with this servicer, not your lender, when you have questions on your loan status, amounts owed, or changes in your enrollment status or address. Each time your loan is sold, you are notified about where to direct your questions. Ask your lender about its servicing policies.

Should I Stay With One Lender?

Yes. It is highly recommended that you borrow all of your loans from one lender because it will simplify your repayment process. Different lenders use various servicers and secondary markets; if you change lenders during your school program, your loan may end up at different sites, resulting in multiple payments and correspondence to different sources. However, if all of your same-type loans are serviced in one place, they can be combined into one monthly payment. In many cases, a combination of loan payments results in a lower monthly payment. Ask your lender about its servicing policies. If your lender uses more than one secondary market or servicer, ask if all of your loans will be kept together at the same servicing site.

Freshman/Sophomore Status

Freshman - students who completed up to 32 credits of college work.

Sophomore - students who completed 33 or more credits of college work and are graduating within the academic year.

Loan Repayment Facts

Paying Back Your Loan

You are responsible for payment of:

• the amount borrowed;
• interest on the amount borrowed;
• and fees at the time you receive loan proceeds.

A loan can be expensive. Borrow only what you need. Stafford Loan monthly payments are based on the total amount owed.The minimum monthly payment is $50. Repayment must be completed within 10 years, depending on how much you borrow.You can prepay the principal at any time with no penalty. Repaying the principal sooner will save you money on the interest charges.

When Do You Start Repaying Your Loan?

You have a 6-month grace period between the date you leave college or attend less than half-time (6 credits per semester) and the date you must start repaying your loan. Contact your lender to make repayment arrangements no later than 90 days before your grace period ends. Your lender will notify you regarding your first payment due date within 120 days after you leave college or cease to be enrolled at least half-time.

You Must Repay Your Loan

You are responsible for repayment of all loans, including interest and any fees, even if you do not finish college. The government will not excuse you from repaying your loan because you do not think you got your money’s worth. If you fail to meet your loan repayment terms, you are delinquent. If you continue to be delinquent, you default on the loan and the entire balance becomes due. Being in default means you may:

• no longer be eligible for student aid at any school;
• be sued;
• lose your Federal and State income tax returns;
• or find it difficult to obtain other credit.

Default and delinquencies are reported to the credit bureau.

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