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 2.75 percent for loans disbursed between July 1, 2020 and June 30, 2021. Interest rates are established each year for subsidized Direct Loans. The interest rate established for each loan is fixed and will apply for the life of the loan. 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 accruing during the in-school period is paid by the federal government. The standard repayment period is up to 10 years. Subsidized Direct Loans, where the first disbursement is made on or after October 1, 2019, carry a 1.059 percent federal origination fee. Net proceeds will equal 98.941 percent of the loan amount.
Maximum eligibility period to receive Direct Subsidized Loans
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". You can find the published length of any program of study in Loyola's catalog.
For example, if you are enrolled in a 4-year bachelor's degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years).
Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
Federal Direct Stafford Loan Program (Unsubsidized)
The unubsidized 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 2.75 percent for loans disbursed between July 1, 2020 and June 30, 2021. Interest rates are established each year for unsubsidized Direct Loans. The interest rate established for each loan is fixed and will apply for the life of the loan. 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.