There are two types of Federal Direct Stafford Loans, Subsidized and Unsubsidized.
Eligibility for the Subsidized Stafford Loan is determined by information provided on the FAFSA. The federal government pays the interest on this loan while the student is enrolled at least half-time per semester.
Students receiving an Unsubsidized Stafford Loan are responsible for the interest accrued while enrolled. Students can choose to postpone interest payments on an Unsubsidized Stafford Loan until repayment. The deferred interest is capitalized (added to the principal) when repayment begins.
Repayment of Federal Direct Stafford Loans begins six months after the student graduates, withdraws, or drops below half-time.
If you have a Federal Direct Stafford Loan as a part of your Financial Aid Award Package, follow these steps to complete your loan paperwork:
1. Complete Entrance Counseling by clicking here
2. Complete your Master Promissory Note by clicking here
|Year 1||$9,500||Includes a combination of $5,500 Subsidized and/or Unsubsidized Loans and an additional $4,000 Unsubsidized if eligible.|
|Year 2||$10,500||Includes a combination of $6,500 Subsidized and/or Unsubsidized Loans and an additional $4,000 Unsubsidized if eligible.|
|Years 3, 4, 5||$12,500||Includes a combination of $7,500 Subsidized and/or Unsubsidized Loans and an additional $5,000 Unsubsidized if eligible.|
Parents of dependents can apply for a PLUS Loan. This loan is in the parent’s name, with repayment beginning within 60 days of the final financial aid disbursement for the academic year. The PLUS Loan, based on credit approval, has the advantage of a lower interest rate than can be obtained through a personal loan.
If a parent is turned down for the Federal Direct Parent PLUS Loan, the student may be eligible for an additional Unsubsidized Stafford Loan. Contact your personal Financial Aid Counselor for more information.
A private education loan is in the student’s name, with principal payments deferred until six months after leaving college or falling below half-time status. Credit approval is required for this type of loan, and often students need a cosigner.