September 12, 2007

Stafford Loan Certification

Posted in Stafford Loans, Student Loan News, The Financial Aid Process tagged , , , , , at 3:17 PM by Joe From Boston

This is a topic I’ve mentioned a lot recently, but it’s critical to understanding Stafford Loans, and it will affect any student getting a Stafford Loan, so I’m devoting another post to it.  Here’s an FAQ with questions I’ve heard our Customer Service Reps asked a lot recently.

Stafford Loans must be certified by your school

What does that mean?

It means that your school has the final say in whether you get a college loan and in how much money you actually get.

What does the school do?

The school confirms to the lender that they have awarded you the money in your award letter the previous spring, and they confirm to the lender that you were allocated a certain dollar amount to receive.

Why does my school have to certify the loan?

Stafford Loans are FEDERAL financial aid – Federal is the key word here.  Schools are only allowed to give out a certain amount of money in Stafford Loans, and students must qualify for the loan by filling out the FAFSA.  The certification process ensures that the money was awarded properly.

Does it affect the loan’s time frame?

YES. It’s another step in the process, and another party involved, so it will affect how long your loan takes to fund.  If you apply at the last minute when your school is swamped, you will encounter long delays.

If you have any questions about the loan you want answered, leave a comment here or visit – it’s a great resource for learning about the Stafford Loan, who qualifies, the maximum you might be awarded, etc.


  1. loans said,

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  2. Karen Van Hook said,

    I requested additional funds to be disbursed to me however, as of 11/17/2009 “elmresources” is showing the status of my loan is “exception processing” it is now 11/25/2009 and the status remains the same. I’ve been told by my school that my loan was packaged on 11/18/2009, still pending certification. The amount I’m requesting was awarded to me some time ago but the disbursement is still pending. Can anyone shed any light on this.

    Thank you,
    Karen Van Hook
    [edited to remove contact info]

    • Karen,

      I would suggest that you and your financial aid officer call the loan company together. It sounds like there might have been a mixup, or that the loan company is a bit behind, but with you all on the phone together, you can all reach a conclusion together.

  3. […] Original post by moniqueleonard […]

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