September 12, 2007
Stafford Loan Certification
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 StaffordLoan.com – it’s a great resource for learning about the Stafford Loan, who qualifies, the maximum you might be awarded, etc.