In This Section
Federal Direct Subsidized Stafford Loan
Federal Direct Unsubsidized Stafford Loan
Federal Direct PLUS Loan
Direct Loan Instructions: Steps to Secure a Direct Loan
Frequently Asked Questions (see column at right)
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Federal Direct Loans
Federal Direct Subsidized Stafford Loan
| Sponsor: | U.S. Department of Education, 1-800-848-0979. |
| Amount: | Up to $3,500 Freshman, $4,500 Sophomore, $5,500 Junior and Senior. (NOTE: Effective July 1, 2012 the Subsidized Stafford Loan is no longer available to graduate students.) |
| Interest: | 3.40% (NOTE: Effective July 1, 2013 the interest rate on the Federal Direct Subsidized Stafford Loan is scheduled to increase to the maximum of 6.80%. If legislation deems otherwise, an update will be posted accordingly.) |
| Term: | 10 years. |
| Fees: | An origination fee of 1.0% (NOTE: Effective March 1, 2013 the origination fee is 1.05% and remains in effect for an indefinite period.) will be deducted from each disbursement. |
| Eligibility: | Student must maintain at least half-time enrollment status in each enrolled semester and meet basic eligibility requirements. |
| Deferral: | Principal and interest*. Repayment begins six months after graduation or when the student falls below half-time status. * Effective July 1, 2012, for new Subsidized Stafford Loans, the interest subsidy during the six-month grace period has been eliminated for students who fall below half-time status. |
A Federal Direct Subsidized Stafford Loan is a low interest need-based loan made to students enrolled at least half-time who have completed the FAFSA for the appropriate academic year. The federal government pays loan interest while the student is in school, and loan repayment begins six months after the student graduates or drops below half-time enrollment. Eligible students are automatically considered also for the Federal Direct Unsubsidized Stafford Loan (described below).
NOTICE: U.S. Congress has enacted a number of legislative changes affecting the federal loan programs beginning summer semester 2012. The Budget Control Act of 2011, signed into federal law in August 2011, includes the following:
Elimination of Loan Interest Subsidy: Effective July 1, 2012 the Subsidized Stafford Loan will no longer be available to graduate and professional students for loan periods beginning on or after July 1, 2012. The graduate Stafford loan program becomes entirely unsubsidized, which means that the borrowed amount will accrue interest while the student is in school. The annual and aggregate borrowing limits will not be affected (the maximum amount a student can borrow in the Stafford loan program will remain at $20,500 per academic year), and all students are automatically evaluated for loan eligibility.
Elimination of Loan Fees Rebate: Previously, one-half of the 1% origination fee on the Stafford loan was refunded to the borrower at the time of disbursement. Effective July 1, 2012 the rebate will be eliminated and the full fee will be charged to students.
Elimination of Grace Period Interest Subsidy: Effective July 1, 2012, for new Subsidized Stafford Loans, the interest subsidy during the six-month grace period has been eliminated for students who fall below half-time status.
Federal Direct Unsubsidized Stafford Loan
| Sponsor: | U.S. Department of Education, 1-800-848-0979. |
| Amount: | Up to $5,500 Freshman, $6,500 Sophomore, $7,500 Junior/Senior, $20,500 Graduates, $40,500 Graduates in health professions. (All amounts minus any subsidized Stafford loan.) Additional unsubsidized amounts available: see below. |
| Interest: | 6.80% |
| Term: | 10 years. |
| Fees: | An origination fee of 1.0% (NOTE: Effective March 1, 2013 the origination fee is 1.05% and remains in effect for an indefinite period.) will be deducted from each disbursement. |
| Eligibility: | Student must maintain at least half-time enrollment status in each enrolled semester and meet basic eligibility requirements. |
| Deferral: | Principal only. Interest may be capitalized. Repayment begins six months after graduation or when the student falls below half-time status. |
Eligible students who have completed the FAFSA for the appropriate academic year are automatically evaluated for the Unsubsidized Stafford Loan.
If you are a dependent student whose parent was DENIED a Parent PLUS Loan (described below), you may be eligible for additional unsubsidized loan amounts. For Freshman & Sophomores the additional unsubsidized Stafford Loan is $4,000. For Juniors & Seniors the additional unsubsidized Stafford Loan is $5,000. Please contact the Office Of Financial Aid so we may suggest these amounts. Documentation of denied PLUS Loan may be required.
NOTICE: U.S. Congress has enacted a number of legislative changes affecting the federal loan programs beginning summer semester 2012. The Budget Control Act of 2011, signed into federal law in August 2011, includes the following:
Elimination of Loan Fees Rebate: Previously, one-half of the 1% origination fee on the Stafford loan was refunded to the borrower at the time of disbursement. Effective July 1, 2012 the rebate will be eliminated and the full fee will be charged to students.
Federal Direct PLUS Loan
| Sponsor: | U.S. Department of Education, 1-800-848-0979. |
| Amount: | Up to the full cost of education, minus other financial aid received. |
| Interest: | 7.90% |
| Term: | 10 years. |
| Fees: | An origination fee of 4.0% (NOTE: Effective March 1, 2013 the origination fee is 4.20% and remains in effect for an indefinite period.) will be deducted from each disbursement. |
| Eligibility: | Student must maintain at least half-time enrollment status in each enrolled semester and meet basic eligibility requirements. |
| Deferral: | Principal only. Interest may be capitalized. To apply for an in-school deferment, Direct Parent PLUS borrowers should call Direct Lending at 1-800-848-0979. |
The Federal Direct PLUS Loan is available to parents of dependent undergraduate students and to qualifying graduate and professional students who have completed the FAFSA for the appropriate academic year. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial aid received. Interest is charged during all periods. The U.S. Department of Education will evaluate the borrower's credit history to determine eligibility.
NOTICE: U.S. Congress has enacted a number of legislative changes affecting the federal loan programs beginning summer semester 2012. The Budget Control Act of 2011, signed into federal law in August 2011, includes the following:
Elimination of Loan Fees Rebate: Previously, a portion (1.5%) of the 4.0% origination fee on the PLUS loan was refunded to the borrower at the time of disbursement. Effective July 1, 2012 the rebate will be eliminated and the full fee will be charged to parents and students.
