Most eligible students who file the Free Application for Federal Student Aid (FAFSA) will be offered a William D. Ford Federal Direct Stafford Loan. The type(s) and amounts of Stafford loan(s) offered will depend on factors such as federal limits, year in school, dependency status, cost of attendance, and other financial aid received. Stafford loans can be repaid in portions or in full, in advance of repayment, without any penalty. The U.S. Department of Education assigns the borrowed loan(s) to an affiliated servicer.
The online application is available at StudentLoans.gov (please use student information to complete this process). First-time borrowers must complete two steps:
A FAFSA PIN number is required by the student to borrow Federal Direct Stafford loans, and by a parent to borrow a Federal Direct PLUS loan. If you need to create or request a duplicate PIN number, visit pin.ed.gov.
Stafford Loans are guaranteed by the federal government and a credit check is not required. A student is eligible for this loan type provided the following criteria have been met:
Your loans must be accepted and all requirements completed prior to loan disbursements. You can accept your loan by responding to your award letter and checking on your loan disbursement by viewing your account summary on Self-Service.
In accordance with federal student aid regulations, Federal Direct Loan disbursements may occur as early as ten days prior to the beginning of the semester if all requirements are met.
The interest rate on both loans is fixed at the time the loan disburses. New loan interest rates for subsequent years are adjusted once a year on July 1. Obtain current interest rates. As of 2012-2013, the loan fee charged for a Direct Subsidized and Direct Unsubsidized Stafford Loan is 1.0% of the amount borrowed.
You are required to begin making payments on your Federal Direct Stafford Loans after you graduate, leave school, or drop below half-time enrollment. You have a grace period of six months before you must begin repayment, but interest will still accrue on your federal Stafford Loan(s) during this time frame. The Federal Direct Stafford Loan Program offers various repayment plans designed to meet the needs of almost every borrower. Plan ahead for repayment and budget wisely.
A detailed explanation of your full rights and responsibilities as a student loan borrower are available on your signed master promissory note. Stafford Loans borrowed after July 1, 2009 can retrieve electronic promissory note copies on StudentLoans.gov. All prior year borrowers should request a hard copy from their lender(s) directly.
If you are unsure who your loan servicer is, you can look it up on the National Student Loan Data System (NSLDS) or call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY 1-800-730-8913).
|LOANS||Amount||Who is Eligible||How to Apply||Interest Rate and Repayment|
|Federal Direct Subsidized Stafford Loan||Max loan limits are $5,500 for freshmen (only $3,500 may be in subsidized loan), $6,500 for sophomores (only $4,500 may be in subsidized loan), $7,500 thereafter (only $5,500 may be in subsidized loan).
Independent students may be eligible for $4,000 to $5,000 in additional loan funds.
|US citizens or permanent residents demonstrating financial need||Submit FAFSA||Fixed rate - Begins 6 months after student leaves school or drops below half time enrollment (6 credit hours).|
|Federal Direct Unsubsidized Stafford Loan||Students who have not received the max Federal Direct Subsidized Stafford Loan. Independent students may have additional eligibility.||Submit FAFSA||Fixed rate - Begins 6 months after student leaves school or drops below half time enrollment (6 credit hours). Interest accrues while in school.|
|Federal Direct Plus Loan||Up to the cost of education less aid received||Parents of dependent students||Submit FAFSA and loan application||Fixed rate - Begins 60 days after entire loan is disbursed or 6 months after student leaves school.|