Federal Direct Stafford Loans
Federal Direct Stafford Loans (Subsidized and Unsubsidized)
The Federal Direct Stafford Loan program is the Department of Education’s major form of self-help financial aid. These funds are borrowed directly from the Department of Education.
These low interest loans are offered to undergraduate and graduate students who are enrolled at least half time. Students must demonstrate financial need to be eligible for the Subsidized Stafford. The interest on the Subsidized Stafford will be paid by the Department of Education while the student is in school and during grace and deferment periods. The Unsubsidized Stafford is a low interest loan that is not need-based and is awarded in conjunction with the Subsidized Loan in order to award up to the eligible yearly maximum amounts. All of the interest that accrues on the Unsubsidized Stafford is the borrower’s responsibility.
Loan Limits
Annual Loan Limits
The annual loan limits are subject to proration and cannot exceed a student’s Cost of Attendance. In addition, the annual loan limits may not cause a student’s aggregate amount to exceed the Department of Education’s lifetime limits.
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Subsidized and/or Unsubsidized
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Additional
Unsubsidized
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Dependent Undergraduates
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1st year
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$3,500
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$2,000
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2nd year
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$4,500
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$2,000
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3rd year and up
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$5,500
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$2,000
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Dependent Undergraduates
with parents who are not approved for a Parent PLUS
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1st year
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$3,500
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$6,000
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2nd year
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$4,500
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$6,000
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3rd year and up
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$5,500
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$7,000
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Independent Undergraduates
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1st year
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$3,500
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$6,000
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2nd year
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$4,500
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$6,000
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3rd year and up
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$5,500
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$7,000
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Graduate Students
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Per year
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$8,500
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$12,000
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Aggregate Loan Limits
The aggregate loan limits represent the cumulative borrowing amounts allowed by the Department of Education. Unpaid consolidated loan amounts will be calculated as part of a student’s aggregate amount.
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Subsidized and/or Unsubsidized
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Additional
Unsubsidized
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Dependent Undergraduates
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$23,000
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$8,000
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Dependent Undergraduates
With parents who are not approved for a Parent PLUS
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$23,000
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$34,500
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Independent Undergraduates
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$23,000
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$34,500
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Graduate Students
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$65,500
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$73,000
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Stafford Loan Definition Chart
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Repayment
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Begins 6 months after student:
- Graduates,
- Leaves MNU, or
- Drops below half time status
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Interest Rate
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Subsidized Stafford:
Undergraduate Students
4.5% fixed for loans disbursed 07/01/10 to 6/30/11.
5.6% fixed for loans disbursed 07/01/09 to 06/30/10.
6.0% fixed for loans disbursed 07/01/08 to 06/30/09.
6.8% fixed for loans disbursed 07/01/06 to 06/30/08.
Graduate Students
6.8% fixed for loans disbursed on or after 07/01/06.
Unsubsidized Stafford:
6.8% fixed for loans disbursed on or after 07/01/06.
(For Stafford Loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable. The student’s lender can provide the current rate.)
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Interest Subsidy
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Subsidized Stafford:
The federal government pays the interest that accrues until the student enters repayment.
Unsubsidized Stafford:
Student is responsible for interest that accrues from the date lender disburses the loan. Student may defer payment of this interest until repayment begins. Interest is then capitalized (added to the principal balance) when the student enters repayment.
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Fees
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Origination Fee: 1.5%
Rebate: 1.0%
Net Fees: .5%
The government pays 1.0% of your origination fee at disbursement. You are eligible to keep this benefit as long as you make the first twelve monthly payments of your student loan on time.
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Stafford Loan Debt
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Retrieve student loan information at NSLDS Student Access.
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Teacher Loan Forgiveness Program
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Review qualifications and definitions for loan forgiveness benefits
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Completion Requirements
All borrowers at MNU must also:
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