|
Subsidized Direct Loan
The Subsidized Direct Stafford Loan is offered to students who demonstrate financial eligibility
according to federal regulations. For a Subsidized Direct Loan, the federal government
pays the interest while the student is in school at least half-time. Therefore,
no
interest
accrues
during the in-school or the grace period.
Unsubsidized Direct Loan
The Unsubsidized Direct Stafford Loan is offered to students who do not qualify on the
basis of calculated financial eligibility for a Subsidized Direct Loan, or who qualify
for only a portion of the total base amount of their total annual limit in Subsidized Direct Loan. Interest
is charged on an unsubsidized loan while the student is enrolled in school, beginning
after the loan is disbursed. Students may elect to pay the interest or have it
capitalized (added to the principal) and pay it during the repayment period.
Additional Unsubsidized Direct Loan
A dependent undergraduate with a parent who has been credit
denied on a Federal Direct PLUS Loan may be eligible to borrow additional
(Fr/So: $6,000, Jr/Sr: $7,000) Unsubsidized Direct Stafford Loan. An independent
undergraduate may be eligible to borrow additional (Fr/So: $6,000,
Jr/Sr: $7,000) Unsubsidized Direct Stafford Loan, provided they meet
the federal criteria as an independent applicant for federal student
aid. All other undergraduates may be eligible to borrow $2,000
of additional (beyond the base amount allowed for each grade level,
see below) Unsubsidized Direct Stafford Loan, upon written request.
| Direct Federal Stafford Loan |
Base Amount |
Additional Amount |
Subsidized |
Unsubsidized |
Additional Unsubsidized |
Interest Rate
(fixed for the life
of the loan) |
6.0% |
6.80% |
6.80% |
Annual
Loan Amount
|
Maximum
Freshman: $3,500
Sophomore: $4,500
Junior/Senior: $5,500
|
|
|
Interest Charged While Enrolled
(fixed for the life
of the loan) |
none |
6.80% |
6.80% |
| Repayment of Principal Begins |
6 months after no longer enrolled at least half-time |
Origination Fee and Rebate
An origination fee of 2.0 percent, partially offset by a 1.5 percent up-front rebate, is deducted automatically from amounts borrowed.
The net result is that the amount disbursed is less than the loan amount
approved. The borrower retains
the
rebate by
making the first
12 monthly payments on time.
Maximum Annual Loan
Maximum annual loan amounts are set by federal statute and
apply to the total combined subsidized and unsubsidized loan.
Maximum Cumulative Loan
The maximum cumulative (aggregate) subsidized and unsubsidized loan amount is $31,000 (no more than $23,000 of which may be Subsidized) for
undergraduate study.
|
