Federal Direct Stafford Loan

Loan Program Highlights

• Eligibility is outlined on the financial aid award
• Borrowed in student’s name
• No co-signer required
• Completion of Entrance Counseling and a Master Promissory Note is required before disbursement of the first loan
• Students may borrow up to a maximum combined Subsidized and Unsubsidized Stafford Loan of $5,500 for the freshman year, $6,500 for the sophomore year and up to $7,500 for each of the junior and senior years
• Low net origination fee of 1.057% as of October 1, 2020. The 1.057% rate will be retained on October 1, 2023.
• Subsidized and Unsubsidized Stafford Loans borrowed between July 1, 2023 and June 30, 2024 will have a fixed 5.49% interest rate
• Loan Servicing is handled by a U.S. Department of Education contractor. Loans are serviced by a contractor once they have been disbursed to the student’s account
• Repayment begins 6 months after the student graduates or drops below half-time status
• Possible repayment/cancellation benefits for full-time employees in certain fields

Subsidized

• Based on financial need as determined by the FAFSA
• Federal government subsidizes (pays) the interest on the loan while the student is enrolled at least half-time

Unsubsidized

• Not based on financial need
• Interest will be charged while the student is enrolled and until the loan is paid in full
• Students have the option to pay the interest as billed quarterly throughout their schooling, or to allow the interest to be added to the principal at repayment
• Students need to contact their Direct Loan Servicer if they want to receive interest bills while in school. Information regarding the Servicer will be sent to the student once a loan has been disbursed