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THE FEDERAL
FAMILY EDUCATION LOAN PROGRAM (FFELP) AT SOUTHERN POLYTECHNIC STATE
UNIVERSITY
Introduction
Southern Polytechnic State University (SPSU) helps
students and their parents borrow money at low interest rates through
the Federal Family Education Loan Program.
The Office of Scholarships and Financial Aid at Southern
Polytechnic State University, process FFELP Loans (Subsidized and
Unsubsidized Stafford, PLUS) only through Single Source Partners (SSP)
lenders that guarantee through American Student Assistants (ASA). Please
understand that if you have a
previous FFELP Loans, your loan will automatically guarantee under the
same Single Source Partner (ASA) Lender. Please see the link
below to a list
of preferred Single Source Partner (SSP) lenders.
General Information
Southern Polytechnic
State University Office of Scholarships and Financial Aid does not
process third party loan paperwork (i.e. Signature Loans, Alternative
loans, Pre-Approved Plus) from Lenders. Southern Polytechnic
State University Office of Scholarships and Financial Aid office will
only process FFELP Loans (SUB/UNSUB/PLUS).
FAFSA
Remember that a Free Application for
Federal Student Aid (FAFSA) application must be completed
in order to be eligible for the SUB and UNSUB loans. A separate
application is available for the Parent PLUS loans.
In addition to this information please pick up "The
Student Guide to Financial Aid 2002-2003" available in the Office of
Scholarships and Financial aid or view at STUDENT GUIDE.
The Process of FFEL
Stafford Loans at SPSU
Unlike other types of financial
aid, FFEL Stafford Loans are unique in the way they are processed. As
stated previously, you must fill out a Free Application for Federal
Student Aid (FAFSA) in order to be eligible for
any type of Federal Aid.
SEE FLOWCHART FOR A GRAPHICAL
REPRESENTATION OF THIS INFORMATION
- Upon Completion and Processing of a FAFSA form, the
Dept. of Education sends an Institutional Student Information Record
(ISIR) to the institution(s) requested by the student.
- Upon receipt of the ISIR the Financial Aid Office
sends a missing document letter (for verification purposes) via mail to
students who were chosen for verification by the Dept. of Education.
The documents needed in verification cases may include tax forms for
the previous year's income, dependent or independent verification
forms, and other documents needed to verify FAFSA information (see
Financial Aid for details). Verification is completed when all
documents requested are received and satisfied. After verification, the
student's aid is packaged, an award offer (Award letter) is generated
and mailed to the student.
- If the student was not selected for verification the
student's aid is packaged, an award offer (Award letter) is generated
and mailed to the student.
- Upon receipt of a -signed/dated- (with Drivers
License, Lender, and active email information for students accepting
loans) Award letter, Financial Aid will process the accepted awards and
disburse the funds in the next disbursement cycle (usually once a week,
and more frequently during the start of a new semester when volumes are
high).
- If FFELP Loans were a part of the accepted Award
package a loan application will be processed and sent to the Georgia
Higher Education Assistance Corporation (GHEAC), SPSU's Loan Guarantor.
- Upon receipt of the Loan application GHEAC will query
its database in search of a valid Master Promissory Note (MPN) for the
student. This feature is very beneficial for Students that have
attended institutions under the FFELP program, or have previous loans
under the FFELP program. Please understand that if you have
previous FFEL Loans, your loan will automatically guarantee under the
same Single Source Partner (GHEAC) lender.
- If this is the first time you are borrowing
under the FFEL(Federal Family Education Loan) program you are required
to complete a Master Promissory Note (MPN). The SPSU web address to
complete the online MPN will be emailed to the email address you listed
on the award letter (only for students accepting loans).
- Upon receipt of a completed MPN, GHEAC will issue a
loan guarantee to the Borrower (Student, paper copy), School
(electronically and paper copy), and the Lender.
- After the Guarantee is sent, GHEAC will issue the
loan disbursement (by EFT, electronic Funds Transfer) to SPSU. At this
point the funds are ready to be disbursed on to the students account in
the next disbursement cycle.
Requirements
for Loan Recipients
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STUDENTS
MUST BE ENROLLED AT LEAST HALF-TIME OR MORE (HOURS MAY VARY FOR
UNDERGRADUATE AND GRADUATE STUDENTS).
STUDENTS MUST ALSO MAKE SATISFACTORY ACADEMIC PROGRESS IN
ORDER TO RECEIVE ANY TYPE OF FEDERAL AID, INCLUDING LOANS.
IF YOU ACCEPT A LOAN YOU MUST COMPLETE SPSU PRE-LOAN COUNSELING. YOUR
LOAN WILL NOT BE PROCESSED OTHERWISE (Stafford Loan Entrance Counseling).
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FFELP PLUS LOANS
FFELP PLUS loans are available for dependent (Under 24
years old) undergraduate students with unmet need. A PLUS loan is a
loan where the parent of a dependant undergraduate student can borrow
funds to go towards the student's educational expenses. To be eligible
for the PLUS loan, the parent must pass a credit check, and must meet
citizenship requirements. Additional information is available in "The
Student Guide to Financial Aid 2002-2003" available in the Office of
Scholarships and Financial aid or view at STUDENT GUIDE.
- The FFELP PLUS loan process is similar to the FFELP
loan process. To initiate a FFELP PLUS loan the student and the parent
must fill out a PLUS application available in the Office of
Scholarships and Financial Aid.
- Upon receipt of the PLUS Application, an electronic
loan application will be processed and sent to the Georgia Higher
Education Assistance Corporation (GHEAC), SPSU's Loan Guarantor.
- Upon receipt of the electronic loan application GHEAC
will run the credit of the parent borrower. If the credit is approved,
a promissory note will be produced and mailed to the parent borrower
(the parent and the student must complete this promissory note). When
GHEAC receives the completed promissory note they will issue a loan
guarantee to the Borrower (Student, paper copy), School (electronically
and paper copy), and the Lender. After the Guarantee is sent, GHEAC
will issue the loan disbursement (by EFT, electronic Funds Transfer) to
SPSU. At this point the funds are ready to be disbursed on to the
students account in the next disbursement cycle.
- If the credit is denied the student has the option of
receiving additional Federal Unsubsidized Stafford Loan Funds that
he/she is eligible to receive. This option must be checked on the
application before submitting to Financial Aid. If the student selects
that option, when the credit is denied additional Unsubsidized Stafford
Loan Funds will be offered to the student, see STUDENT GUIDE for Subsidized and
Unsubsidized loan limits.
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