APPLYING FOR STAFFORD LOANS

APPLYING FOR STAFFORD LOANS

Instructions for Loans by Web and Lender Selection

Loan Entrance Counseling

Federal Stafford Loan Process and Lender Information

NOTE: If you are reading this prior to being awarded a Federal Stafford Loan, please be aware you must complete and submit a Free Application for Federal Student (FAFSA) before we can determine your eligibility for Federal Stafford Loans. Many students rely on federal government loans to finance their educations. These loans have low interest rates and do not require credit checks or collateral. Student loans also provide a variety of deferment options and extended repayment terms. Student loans include the Federal Stafford loans, both subsidized (the government pays the interest while you're in school) and unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). We will award you to the maximum extent of your eligibility, based on your grade level/classification at the time the award was made. Stafford Loans have a fixed interest rate. All lenders offer the same rate for the Stafford loan, although some give discounts for on-time and electronic payment.

Entrance Counseling

Students who have not previously borrowed under the Federal Stafford Loan Program at UHD must complete Entrance Counseling before a student loan will be disbursed. Please be sure to complete this as you are going through the LBW process. This is a part of our default management plan and will not be waived.

Exit Counseling

Students who graduate or drop to less than half-time status (less than six credit hours) are required to complete EXIT COUNSELING conducted by the OSFA. Exit Counseling is designed to give an overview of a student’s rights and responsibilities as a borrower with an emphasis on repayment. Students who apply for graduation from UHD will be mailed information regarding exit counseling sessions during the semester. Students who drop to less than half-time status should contact the OSFA to arrange exit counseling. This is a Federal regulation and cannot be waived.

Instructions for Loans By Web (LBW) and Lender Selection

Beginning the LBW Process

To begin the LBW process, follow these steps:

Log in to LBW at https://lbw.tgslc.org.
Click the “I am a student borrower” button.
Read the general instructions for the LBW process.
Click the “Begin processing your loan” button to begin.

STEP 1	Enter your social security number, date of birth and click “Continue.” Be sure to read the Privacy Act Notice on the right side of this page

STEP 2	Select University of Houston-Downtown to find your certification. (From the time the award has been awarded to you it can take at least two days for the award to appear on LBW)

STEP 3	Complete Entrance Counseling. (Even if you have done so previously.) *Your process is NOT yet complete* , please continue through to the next step. (The process will be complete when you have either declined the loan or you see a notice stating; "Congratulations Your Loan has Been Guaranteed")

	In this section of the LBW loan request you must select a lender. (If you have a previous student loan, your most current lender will appear at the top of the list.) Click the “Search” button to choose a lender. If your lender is out-of-state, contact the OSFA.

	To select a lender first check with the institution that you or your parents have a banking relationship with. Most major banking institutions offer the Stafford Loan Program; do not apply with the lender directly. You will need to lender information when you guarantee your loan. You can also go to Texas Guarantee (TG) Lender Fact Sheet to research a lender.

STEP 4	Read all the instructions carefully and then complete your loan request. At this point you have ability to decline all your student loans by clicking on “Decline loans now.” (your loans will be declined and you can exit the LBW process.). If you choose, you can accept or reduce the amount of your loan. PLEASE BORROW RESPONSIBLY! What you borrow today, you will pay back “tomorrow.”

STEP 5	Once you have completed the application, you are ready to submit it to TG for guarantee. Click the “Submit the Application” button. Click this button only once. In some cases, if TG’s loan guarantee system is busy, you may receive a “System Busy” message. If you receive this message, LBW provides you the option of either returning to LBW at a later time or authorizing TG to resubmit your loan request when the system is available. TG will notify you of the outcome.

STEP 6	Once your loan has been guaranteed, you can click the “Print“ button or if you selected a lender with the e-signature capability, you will be taken to the lenders secured web site to sign your MPN electronically. Follow the instructions carefully! Once this process is complete you will be taken back to the LBW site for completion of your student loan(s).

	IMPORTANT : Print, sign and mail one copy of the MPN to your lender and keep one for your permanent records. If you fail to complete your Promissory Note properly or delay submitting it to the lender, your loan funds will be delayed. Previous UHD borrowers do not need to print and sign an MPN unless you are changing lenders.