Office of Student Aid : E-access : Federal Stafford Loan Information

The first step in applying for a Federal Stafford Loan is to complete the FAFSA on the Web. If you are a first-time borrower at Penn State, you will also need to sign your loan application—the Federal Stafford Loan Master Promissory Note (MPN). Your Federal Stafford Loan MPN is valid for ten years as long as (1) you remain continuously enrolled as a student, (2) at least a portion of your loan is disbursed within the first 12 months after you sign your MPN, and (3) you continue to borrow each year from the same federal student loan lender.

Follow these instructions to obtain a Federal Stafford Loan if you have not yet received one at Penn State.

1. Complete the FAFSA on the Web. Note that on the FAFSA you will be asked to select what types of student aid interest you. Be sure to choose “Loans” from that question’s drop-down menu if you want to be awarded a Federal Stafford Loan. Penn State will award your Federal Stafford Loan in an amount that is based on your eligibility. You can either review your award information on your Student Financial Aid Notification or you can refer to your Student Aid Summary under the “Students” menu on eLion.

2. Penn State uses AES/PHEAA*—the primary guaranty agency for Pennsylvania schools and their students—as its primary guarantor for loan processing. Therefore, your Federal Stafford Loan eligibility will be sent electronically to AES/PHEAA. You will be asked to choose from a list of more than 200 lenders who participate in the KeystoneBEST Stafford Loan program. The KeystoneBEST program offers one of the best loan programs in the country with the following highlights:

• 0% up-front fees
  
• Repayment incentives
  
• Fast and efficient loan processing
  
• High-quality customer support
  
• “Life of the loan” servicing—AES will service the loan from start to finish
• Default prevention initiatives

Keep in mind that you have the option to use any lender and guaranty agency combination that you prefer. Penn State’s Office of Student Aid staff will process a Federal Stafford Loan for you regardless of the lender you choose. If you wish to borrow from a lender who is not on the KeystoneBEST list, simply contact that lender or guarantor directly and ask them to provide Penn State with (1) a copy of your signed Federal Stafford MPN document and (2) a Request for Certification form.

3. If you choose to use AES/PHEAA as your loan guarantor, read carefully and follow the instructions provided when you are directed to the AES/PHEAA Web site. You will then be asked to select a lender from the KeystoneBEST Stafford Loan program. If you select a credit union, please be aware that you will need to be a member of that credit union before Penn State can process your loan. You will need the following information in order to e-sign your MPN:

• Your driver's license number
  
• The names, addresses, telephone numbers, and e-mail addresses (if available) of two adults at two different U.S. addresses, the first of which should be a parent or legal guardian (if living)
  
• Your Federal Student Aid PIN (Personal Identification Number)

4. Log on to the AES/PHEAA MPN Web site by selecting Create an Account or, if you already have an account, by entering your AES/PHEAA Account Access Information. You’ll need to remember the username and password that you select when you create your account and keep it in a secure place, since you’ll need it to access other AES/PHEAA services.

5. As part of the e-sign process, you will need to locate your four-character alphanumeric Stafford MPN transaction code, which is located at the very end of the PDF version on the last page of your Stafford MPN document. You will be able to access the PDF file after you log on to the AES/PHEAA Web site. Write down the transaction code—you will not be able to complete the MPN signature process without it.

6. After you have finished e-signing your MPN, print a copy for your records.

Note: You will not be able to e-sign your MPN until after any verification issues have been resolved.

7. Complete the one-time interactive Loan Entrance Counseling requirement on eLion. Loan entrance counseling ensures that you fully understand your rights and responsibilities as a student loan borrower.

8. Once the e-sign process has been completed correctly and you have completed loan entrance counseling, AES/PHEAA will approve your loan and transmit your funds electronically to Penn State at the beginning of each semester, as long as you have completed registration.

Continue to the AES/PHEAA Stafford Loan MPN Web site to sign your MPN.

If you experience technical problems while trying to e-sign your Federal Stafford Loan Master Promissory Note, please contact the AES/PHEAA Technical Service at:

1-800-692-7392

*NOTE: AES/PHEAA (American Education Services/Pennsylvania Higher Education Assistance Agency) is a non-profit agency created by the Commonwealth of Pennsylvania to administer the Pennsylvania State Grant Program and other special grants. PHEAA is also designated to serve as a guarantor for the federal student and parent loan programs.