Federal Direct Stafford Loan Program (Subsidized)
The subsidized loan allows students who demonstrate federal financial need and who are enrolled for at least six credits each term to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year and $5,500 per year for subsequent undergraduate study. The interest rate is fixed at 6.8 percent. Interest does not accrue nor does repayment begin on subsidized Direct Loans until termination of college enrollment on at least a half-time basis. Interest accrued during in-school is paid by the federal government. The standard repayment period is up to 10 years. Subsidized Direct Loans carry a 1.051 percent federal origination fee. Net proceeds will equal 98.949 percent of the loan amount.
Federal Direct Stafford Loan Program (Unsubsidized)
The unsubsidized loan allows all students regardless of federal financial need and who are enrolled for at least six credits per term to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year and $7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student. New borrowers must complete a Federal Direct Loan electronic master promissory note to borrow funds through this program. The interest rate is fixed at 6.8% and the origination fee is the same as specified above under the description of the subsidized Direct Stafford Loan Program, however, interest accrual begins immediately during in-school and deferment periods. Interest accruing during these periods may be paid or capitalized.
Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study and up to an additional $7,000 per year for subsequent undergraduate study through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same amounts through this program but only if the student's parent is denied eligibility to borrow funds through the Federal PLUS Loan Program.
New borrowers must complete a Federal Direct Stafford Loan master promissory note and complete an online Entrance Counseling session to borrow funds through this program.
Federal Direct Loan borrowers who graduate, withdraw, or drop below half-time enrollment must complete an online Exit Counseling session.