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The
Federal Family Education Loan Program (FFELP)
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.
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 view the "The
Student Guide to Financial Aid".
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.
- 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 who
have not exceeded their budget. 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 student must have completed a FAFSA and be eligible, the
parent must pass a credit check, and must meet citizenship
requirements. Additional information is available in the STUDENT
GUIDE.
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To initiate a FFELP PLUS
loan the parent must login and establish an account with American
Student Assistance at www.amsa.com/direct. You may also call 1(800)999-9080, select
option 1 and apply over the phone.
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The parent will either
need to complete a master promissory note electronically on the website
or a paper promissory note which must be mailed in before the loan
money can be disbursed.
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The results of the
credit check will be automatically sent to Southern Polytechnic State
University to be processed.
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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. These loan
funds will be offered on the students Banner Web account https://banweb.spsu.edu/pls/PROD/twbkwbis.P_WWWLogin where they can be accepted under the Financial
Aid Award Letter. Please visit the STUDENT
GUIDE for Subsidized
and Unsubsidized loan limits.
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