Stafford

What is the Subsidized Direct Loan?

  • Need-based loan administered through the Direct Loan Program.
  • "Need" is determined by the FAFSA.
  • 6.8% interest rate (for loans disbursed 7/1/2012 or after; however, new legislation is pending to keep this rate at 3.4% for one more year)
  • Interest is deferred after the student graduates or is no longer enrolled in at least 6 credit hours.
  • Awarded based on financial need, dependency status, cost of attendance, and grade level.
  • Know Your Limits (a guide to financial aid limits)

What is the Unsubsidized Direct Loan?

  • Non-need based loan administered through the Direct Loan Program.
  • 6.8% interest rate
  • Interest is charged to the student from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The student has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.
  • Awarded based on dependency status, cost of attendance, and grade level.
  • Know Your Limits (a guide to financial aid limits)

How do I apply for Subsidized/Unsubsidized Direct Loans?

  • Complete the Free Application for Federal Student Aid (FAFSA) online.
  • Accept all or part of the loans on GoldLink after they have been awarded.
  • Complete a Master Promissory Note (MPN) online.
    • Undergraduate and Graduate students applying for Subsidized and Unsubsidized Loans will only need to complete an MPN once every 10 years.
  • Complete Entrance Loan Counseling.
  • NOTE: Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

How does a borrower repay Subsidized/Unsubsidized Direct Loans?

 

What is the Subsidized Direct Loan?

  • Need-based loan administered through the Direct Loan Program.
  • "Need" is determined by the FAFSA.
  • 6.8% interest rate (for loans disbursed 7/1/2012 or after; however, new legislation is pending to keep this rate at 3.4% for one more year)
  • Interest is deferred after the student graduates or is no longer enrolled in at least 6 credit hours.
  • Awarded based on financial need, dependency status, cost of attendance, and grade level.
  • Know Your Limits (a guide to financial aid limits)

What is the Unsubsidized Direct Loan?

  • Non-need based loan administered through the Direct Loan Program.
  • 6.8% interest rate
  • Interest is charged to the student from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The student has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.
  • Awarded based on dependency status, cost of attendance, and grade level.
  • Know Your Limits (a guide to financial aid limits)

How do I apply for Subsidized/Unsubsidized Direct Loans?

  • Complete the Free Application for Federal Student Aid (FAFSA) online.
  • Accept all or part of the loans on GoldLink after they have been awarded.
  • Complete a Master Promissory Note (MPN) online.
    • Undergraduate and Graduate students applying for Subsidized and Unsubsidized Loans will only need to complete an MPN once every 10 years.
  • Complete Entrance Loan Counseling.
  • NOTE: Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

How does a borrower repay Subsidized/Unsubsidized Direct Loans?