Federal Direct Stafford Loans

Federal Direct Stafford Loans are federal student loans for eligible students to help cover the cost of higher education. The following are the two loan programs available:

• Federal Direct Subsidized Stafford Loans
  
  • Available to undergraduate students with financial need.
  • Financial Aid determines the amount students are eligible to borrow, not to exceed financial need.
  • The U.S. Department of Education pays the interest:
    • While the student is in school at least half-time
    • For the first six months after leaving school or falling below half-time enrollment
    • During a period of deferment (postponement of loan payments)
• Federal Direct Unsubsidized Stafford Loans
  
  • Available to undergraduate and graduate students; there is no requirement to demonstrate financial need
  • Financial Aid determines the amount students are eligible to borrow, not to exceed cost of attendance
  • The student (borrower) is responsible for paying the interest during all periods.

For Federal Direct Stafford Loans, there is a loan fee that is a percentage of the amount of each loan you receive. For loans first disbursed between October 1, 2018 and before October 1, 2019, the loan fee is 1.062%, which be deducted proportionately from each loan disbursement. The specific loan fee that you are charged will be reflected on a disclosure statement sent by the Federal government.

Time Limit

For first-time borrowers on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) a student can receive Direct Subsidized Loans. If this limit applies, the borrower may not receive a subsidized loan for more than 150 percent of the published length of matriculating program. This time frame is referred to as "maximum eligibility period."

For further information, please visit www.studentaid.ed.gov.

Current Interest Rates

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement of the loan. For current rates, please visit studentaid.ed.gov.