Eastern Mennonite University participates in the Federal Stafford Loan program to provide assistance for students enrolled in the MBA program. The annual maximum a student may borrow through this program is the annual cost of tuition and books or $18,500, whichever is less. The interest rate is variable but cannot exceed 8.25%. Repayment of principal and interest* is deferrable until after the student ceases to be enrolled on at least a half-time basis. Half-time enrollment is defined as a minimum of 5 credit hours during a 15 week fall or spring semester or 4 credit hours during a 9 week summer session.
“Alternative” educational loans from a variety of lenders are available for enrollment periods during which the student is enrolled less than half-time (e.g., for prerequisite course enrollment and during the “thesis semester.”)
Federal Stafford Loan Eligibility and Application Procedures
Eligibility. The student must be officially admitted to the MBA program and be a U.S. citizen or a U.S. permanent resident (as documented by INS). The student must be enrolled at least half-time in courses offered as part of the MBA program of study. A “prerequisite” course may not be counted in determining enrollment status, unless the course is normally offered as part of another program of study which has been approved as an eligible program of study by the U.S. Department of Education.
Application Procedures. Students should follow the following sequence of events:
- Apply for admission and receive a student ID number. The student’s Social Security number must be entered as part of the EMU student record.
- Complete the Free Application for Federal Student Aid (FAFSA) and list EMU as a recipient of the results of this “need-analysis” document.
- Within about three weeks of sending the FAFSA to the federal processing center, the results of the FAFSA will be electronically sent to EMU (applicant selects schools to receive FAFSA results when completing the FAFSA).
- If a student has been admitted and has a social security number as part of his or her student record at EMU, the results of the FAFSA will “activate” a financial aid file at EMU. Once “activated” the Financial Assistance Office will determine eligibility for both Federal Subsidized and Unsubsidized Federal Stafford Loans.
- The Financial Assistance Office will mail to the student a Financial Assistance Award Letter, detailing the loan eligibility amounts along with instructions on how to apply for a loan. Typically the application process begins with the student completing a “Loan Request Form.”
- The student will complete the Loan Request Form and return it to the Financial Assistance Office. Upon receipt, the Financial Assistance Office will electronically submit a request for loan funds from a specified lender.
- The lender will mail to the student an application/promissory note to complete and return.
- Upon receipt of the application/promissory note, the lender will electronically transfer the loan proceeds to EMU in two disbursements which will be credited to the student’s account. If a student is borrowing a Federal Stafford Loan for the first time at EMU, he or she must attend an “entrance interview” prior to the crediting of the first disbursement.
- The sequence is repeated for the second year of study. The entrance interview is required only once.
For more financial aid information, click here, or contact financial assistance at 1-800-330-9683 or by .
*Depending on financial need, the interest on the first $8,500 per year will be paid by the federal government (“subsidized”). The remaining portion of the amount borrowed is considered “unsubsidized” and a student may elect to pay the interest while enrolled or request that the accrued interest be capitalized (added to the outstanding principal balance).