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Direct Stafford Loan (Subsidized and Unsubsidized)
The following is a comprehensive listing of information for those
interested in applying for a Direct Stafford Loan. Subsidized Stafford loans
are based on need; unsubsidized loans are not. Please visit
www.studentloans.gov for more information.
Borrower Eligibility
- Be enrolled or accepted for enrollment at least half–time in an eligible degree or certificate program at an eligible institution.
- Have a high school diploma or its equivalent.
- Be in good standing and making satisfactory academic progress if currently enrolled.
- Be a U.S. citizen, permanent resident or eligible non–citizen.
- Not be in default or owe a refund on any federal education grant or loan unless satisfactory arrangements have been made to repay the outstanding debt.
Maximum Stafford Loan Amounts per Year (as of July 1, 2008):
Annual limits
Maximum amounts for each year of study
|
| Grade Level |
Subsidized |
Total
subsidized
and
unsubsidized |
| Dependent undergraduates1 |
| First year |
$3,500 |
$5,500 |
| Second year |
$4,500 |
$6,500 |
| Third year and beyond |
$5,500 |
$7,500 |
| Independent undergraduates2 |
| First year |
$3,500 |
$9,500 |
| Second year |
$4,500 |
$10,500 |
| Third year and beyond |
$5,500 |
$12,500 |
| Graduate and professional students |
$8,500 |
$20,500 |
| |
Aggregate limits3
Maximum amounts over academic career
|
| Dependent undergraduates |
$23,000 |
$31,000 |
| Independent undergraduates2 |
$23,000 |
$57,500 |
| Graduate and professional students |
$65,500 |
$224,0004 |
1All undergraduate annual loan limits are subject to proration.
2and dependents whose parents are unable to borrow PLUS loans.
3If the borrower does not meet financial need for a subsidized Stafford
Loan using the expected family contribution (EFC), or has reached the aggregate limit
in subsidized Stafford loans, the borrower may receive this entire loan amount in
unsubsidized Stafford loans provided the borrower has remaining eligibility.
4for students enrolled in certain health professional programs.
|
Preparatory Coursework for Teacher Certification
|
| Loans first disbursed after 7/1/2008 |
Subsidized/Unsubsidized Base Amount |
Additional Unsubsidized Amount |
Total |
| Dependent students |
| Preparatory Courses Undergraduate Program |
$2,625 |
$0 |
$2,625 |
| Preparatory Courses Graduate Program |
$5,500 |
$0 |
$5,500 |
| Teacher Certification Program |
$5,500 |
$0 |
$5,500 |
| Independent students |
| Preparatory Courses Undergraduate Program |
$2,625 |
$6,000 |
$8,625 |
| Preparatory Courses Graduate Program |
$5,500 |
$7,000 |
$12,500 |
| Teacher Certification Program |
$5,500 |
$7,000 |
$12,500 |
Interest Rate
Interest for subsidized loans is generally paid by the U.S. Department of Education (ED)
while you are in school. ED does not pay interest for unsubsidized loans, which means
you are responsible for the accrued interest beginning when they are first disbursed. If you do not pay the interest while in
school, interest is capitalized (added to the principal balance).
As of July 1, 2010, the interest rate on subsidized Stafford Loans for undergraduate
students is 5.6%. The interest rate on unsubsidized Stafford Loans for undergraduate
students is 6.8%. The interest rate on both subsidized and unsubsidized Stafford Loans
for graduate students is 6.8%.
Loans disbursed before July 1, 2006, have a variable interest rate that changes every
year. The variable rate is based on the 91-day Treasury bill rate. Your lender will let
you know each year what the new interest rate is on any variable-rate loans you have.
Repayment
Loans convert to repayment six months after you leave school or drop below half-time
status. The maximum repayment period is 10 years but may
be extended for unusual circumstances.
Fees
For Direct subsidized and unsubsidized loans first disbursed between July 1, 2009 and June 30, 2010, the loan origination fee is 1.5%.
Disbursement
The loan is disbursed in one of the following manners, depending on your school's preference:
- (Individual) check made payable to the student and sent to the school
- Master check made payable to the school representing loan proceeds for more than one student applicant
- Electronic Funds Transfer (EFT) sent to the school representing loan proceeds for more than one student applicant
Updated: 8/16/2010
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