First time Stafford loan borrowers must complete the following processes before funds can be disbursed:
1. Stafford Loan Entrance Counseling
Federal student aid regulations require Federal Stafford Loan borrowers to undergo loan entrance counseling. This serves to educate students about the rights and responsibilities associated with receiving funds that must be repaid. To avoid delays in the receipt of Stafford Loan funds, you are encouraged to complete loan entrance counseling at least 10 days prior to the beginning of your first term of enrollment at UW-Stout. The Financial Aid Office will automatically be notified after you successfully finish the online counseling session.
The UW-Stout Financial Aid Office offers an Online Loan Entrance Counseling session for its students to meet this requirement (below).
Have the following information available to expedite your on-line counseling session: driver’s license, two personal references (names, addresses, phone numbers) – these can be friends or relatives, but must not be two people from the same household.
Complete Stafford Loan Entrance Counseling
2. Stafford Master Promissory Note
The Master Promissory Note (MPN) is a contract between a borrower and lender that legally obligates the borrower to repay an education loan; the students “promise to re-pay” their Federal Stafford loan.
You will be required to select a lender when you complete your Master Promissory Note (MPN). You may choose whichever lender you would like. If you choose a lender that is not on the list (a pull down list will be available in the on-line process), you will need to know its 6-digit lender code. If you choose a credit union as your lender, you must be a primary member of the credit union. UW-Stout does not endorse any one lender, but has provided a list of lenders that have demonstrated a commitment to providing effective service to students and parents, which results in smooth and timely processing of your loan funds. All lenders meet the following criteria:
- Electronic Fund Transfer (EFT) capability
- Trained customer service staff available
- Offers at least one borrower benefit or incentive
How do I choose a lender? Federal guidelines regulate the primary features of student loan programs. However, many lenders offer incentives to borrowers. One current incentive program is a reduced origination fee. Origination fees are the fees taken off of your loan before you receive a disbursement. A reduced origination fee results in a net increase in the loan proceeds you receive. Other incentives may be offered when you enter repayment of your loan. When choosing a lender, you should consider the incentives that are most important to you.