Stafford Loans
Federal Regulations prohibit
the application of Title IV (Stafford, Pell, Perkins, SEOG) funds to an account
until 10 days prior to the first day of class for the period for which the
funds are issued.
First time borrowers are required to complete an Entrance Interview
before they may endorse their Stafford Loan check, or have Pennsylvania
Higher Education Assistance Agency (PHEAA) Electronic Funds Transfer
(EFT) payments applied to their account. You can complete your Stafford
Loan Entrance Interview on the web at: http://www.pheaa.org.
Stafford Loans are processed in the Student Payment Center. The
gross amount of the loan less the origination fee will be transmitted
to the University of Pittsburgh. They are received from lenders in
two different ways:
- If your lender participates in the PHEAA Electronic Funds Transfer
(EFT) process, your Stafford Loan payment will be transmitted
to the University of Pittsburgh electronically.
- Once received,
the funds will be applied to your account as soon
as federal regulations permit.
- A receipt will be sent to your
mailing address to notify you that the funds have been received
and applied to your account.
- The Student Payment Center will
automatically mail a refund check to you if there is a credit
balance on your account for the term
that the loan was issued.
- If your lender does not participate in
the Electronic Funds Transfer (EFT) process, the Student
Payment Center will receive a check made
co-payable to you and the University.
- As soon as the Student Payment
Center receives your check, a letter will be sent to your
mailing address, notifying you to come in and
endorse the check.
- Your loan funds cannot be applied to your
account until you endorse your check.
- You should be prepared
to pay any balance that may be due on your account after
your Stafford Loan check is applied.
- If the check exceeds the
amount of the charges, you will be eligible for a refund
after your loan funds have been applied to your account.
- The
University is required to return Stafford Loan checks to
the lender within 30 days if the student is not registered
at least half
time. We must also return checks when students fail to endorse
the check or attend an Entrance Interview.
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