Federal Direct Stafford Loan

The Federal Direct Stafford Loan Program provides low-interest, long-term loans through the University. Funding for these loans comes from the U.S. Department of Education. These loans may be subsidized or unsubsidized. Eligible students must be admitted and enrolled in good standing at least half-time (six hours for undergraduate and four hours for graduate) in a program leading to a degree. If you drop below half-time status during a semester, the remainder of your loan may be canceled.

The amount you may borrow is determined by federal guidelines. The federal maximum that you are allowed to borrow follows:

• Freshman (those who have not completed 30 earned credit hours) - $3,500 yearly
• Sophomore (30-59 earned hours) - $4,500 yearly
• Juniors or seniors (60 + earned hours) - $5,500 yearly
• Graduate students - $8,500 yearly

Repayment normally begins six months following graduation or when you cease to be at least a half-time (six hours for undergraduate and four hours for graduate) student. Payments and the length of the repayment period depend upon the size of your debt, but must be a minimum of $600 per year. Under special circumstances, repayment of a Federal Direct Stafford Loan that is not in default may be deferred or canceled. Repayment, deferment, and cancellation are handled by a federal loan servicer. If you are eligible for a Federal Direct Stafford Loan, and request a loan on your FAFSA, you will be awarded one (either subsidized or unsubsidized or a combination of both) as part of your financial aid package. Please read the following paragraphs to learn the differences between the subsidized and unsubsidized Federal Direct Stafford Loans. If you decide to borrow a Federal Direct Stafford Loan, you are required to sign a master promissory note which the university will forward to a federal loan servicer.