Federal Direct Stafford Loan Program

Federal Direct Stafford Loan Program (Subsidized)

Allows students who demonstrate federal financial need and who are enrolled for at least six credits each term to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study. The interest rate is fixed at 6.0%. Interest does not accrue nor does repayment begin on subsidized Direct Loans until termination of college enrollment on at least a half-time basis. Interest accrued during in-school and the grace period is paid by the federal government. The standard repayment period is up to ten years. Subsidized Direct Loans carry a 2.0%  federal origination fee and an up-front interest rebate equal to 1.5% of the loan amount. Net proceeds will equal approximately 99.5% of the loan amount. New borrowers must complete a Federal Direct Loan electronic master promissory note and complete an online Entrance Counseling Session to borrow funds through this program.

Click here to visit the Federal Direct Stafford Loan Program Web site.

Federal Direct Stafford Loan Program (Unsubsidized)

Allows all students regardless of federal financial need and who are enrolled for at least six credits per term to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student. New borrowers must complete a Federal Direct Loan electronic master promissory note to borrow funds through this program. The interest rate is fixed at 6.8% and the origination fee is the same as specified above under the description of the subsidized Direct Stafford Loan Program, however, interest accrual begins immediately during in-school and deferment periods. Interest accruing during these periods may be paid or capitalized.

Independent students may borrow up to an additional $4,000 per year for the first and second years of undergraduate study and up to an additional $5,000 per year for subsequent undergraduate study through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same additional amounts through this program but only if the student's parent is denied eligibility to borrow funds through the Federal PLUS Loan Program.

Click here to visit the Federal Direct Stafford Loan Program Web site.