loans


Undergraduate Federal Stafford Loan Information

SMU knows you may need financial assistance to complete your education. You and your parents must make informed decisions about borrowing money. Loan details and instructions for how to complete a loan application are included.

SMU encourages all students to investigate a lender before making a choice to borrow from them. An SMU student is never required to use only the lenders on our preferred lender lists and will certify a loan with any lender of your choice.

SMU encourages students to borrow loans for what they need and NOT to
borrow loans for what they could spend!

Subsidized Stafford Loan

  • Need-based loan (determined by information on the FAFSA)
  • Eligibility based on at least half-time enrollment of 6 hours per term
  • Fixed interest rate of 6.0% for loans after 7/1/08
  • Interest is paid by federal government while enrolled at least half-time
  • Loans may be subject to origination and Federal Default fees that are deducted from the loan disbursements
  • Disbursements are made electronically at the beginning of each term/semester if enrolled at least half-time
  • Repayment begins six months after the end of at least half-time enrollment

Unsubsidized Stafford Loan

  • Non need-based loan (a FAFSA must be filed to be eligible)
  • Eligibility based on at least half-time enrollment of 6 hours per term
  • Fixed interest rate of 6.8% for loans after 7/1/06
  • Interest is student’s responsibility while in school or it can accrue (capitalize) toward the principal until student is no longer enrolled at least half-time
  • Loans may be subject to origination and Federal Default fees that are deducted from the loan disbursements
  • Disbursements are made electronically at the beginning of each term/semester if enrolled at least half-time
  • Repayment begins six months after the end of at least half-time enrollment
  • Beginning 7/1/08 undergraduate students are eligible for $2,000 Federal Unsubsidized Stafford loan in addition to their FAFSA base eligibility for subsidized and/or unsubsidized Stafford loan.
Borrowing Limits:
Subsidized
Unsubsidized--
for Independent or Parent PLUS loan denied

New Unsubsidized Eligibilty
First-Year 
$3,500
$4,000
$2,000
Sophomore
$4,500
$4,000
$2,000
Junior  
$5,500
$5,000
$2,000
Senior & Fifth-Year
$5,500
$5,000
$2,000

Lifetime Aggregate Borrowing = $31,000 for dependent students (no more than $23,000 of which can be subsidized) and $57,000 (no more than $23,000 of which can be subsidized) for independent students or those whose parents were denied the Parent PLUS loan.

Application Instructions:

  • File a Free Application for Federal Student Aid (FAFSA) each year to be eligible for Stafford loans
  • Accept the Stafford loan(s) on Access.SMU after receipt of the Award Notice via your SMU email account
  • Read the instructions in your Award Notice email on how to submit the acceptance, reduction, and/or decline of your loan(s) on Access.SMU.
  • Read subsequent SMU emails with instructions or notifications of the status of your Stafford loan(s)

    • If you are a new/first-time SMU borrower

      Go to Loans by Web and follow the instructions to

      1. Complete the required Loan Entrance Counseling

      2. Complete the application

      3. Choose a Stafford lender.
      Choosing a lender is an important decision. You can choose any lender you wish. If you have not previously borrowed Stafford loans, we recommend that you borrow from one of the lenders on our website Lender List because they have been screened for providing quality service. If you have an outstanding loan debt with another lender, we suggest you continue borrowing from that same lender. 

      4.Sign (either electronically or on paper) the Master Promissory Note with that lender . The Federal Stafford Master Promissory Note (MPN) is the agreement you sign for all Stafford loans. The MPN only needs to be completed once for multiple years of borrowing with a specific lender. This MPN is valid for up to 10 years from the original date of signature. It is important to understand the long-term commitment you are making by signing this note. SMU encourages you to record all amounts that you borrow so you can continue to borrow wisely. 


    • If you are a continuing SMU borrower
      Your Stafford loans are automatically guaranteed with your prior year’s Stafford lender when you accept the loans on Access.SMU. There are no further steps to complete.
  • Contact your financial aid advisor if you wish to change Stafford lenders or if you wish to decline/return all or part of your loan(s) after you submitted them on Access.SMU.