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Federal Stafford Loan Program
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Subsidized and unsubsidized Federal Direct Stafford Loans are available to eligible students. Additional information can be found at Federal Student Aid.
A loan is money you borrow and must pay back with interest. Be sure you understand your options and responsibilities.
Process for new students:
- Complete your FAFSA®*
- Complete your ÃÛѨÊÓƵ certification and award acceptance Letter sent to you via regular mail
- Complete your Federal Direct Loan Master Promissory Note (MPN)*
- Complete your Entrance Counseling (Subsidized/Unsubsidized).
- View your *
Process for continuing students:
- Complete your FAFSA®*
- Complete your on WebAdvisor
- Complete your on WebAdvisor
- Maintain Satisfactory Academic Progress (SAP)
- View your federal loan history*
* Students and parents obtain your Federal Student Aid (FSA) ID in order to access certain U.S. Department of Education websites, including FAFSA® and StudentAid.gov to access your federal loan history.
Interest rates
| Date of First Disbursement | Fixed Interest Rate for Subsidized Undergraduate Loan |
Fixed Interest Rate for Unsubsidized Undergraduate Loan |
|---|---|---|
| 7/1/24-6/30/25 | 6.533% | 6.533% |
| 7/1/23-6/30/24 | 5.50% | 5.50% |
For additional information visit Federal Student Aid.
Subsidized Federal Direct Stafford Loan
The federal government subsidizes the interest on Subsidized Federal Direct Stafford Loans on behalf of students while they are enrolled at least half-time in an eligible program at an eligible school and through their six-month grace period.
- A law passed in December 2011 eliminates the interest subsidy during the six-month grace period on any loans that had a first disbursement made on or after July 1, 2012, and before July 1, 2014.
- First-time loan borrowers, on or after July 1, 2013, are limited to receiving subsidized loans for a period not to exceed 150% of the length of their program.
- You will be notified on the FAFSA® output document of your remaining loan eligibility.
- Under certain conditions, if you exceed the 150% limit you may lose your student loan interest subsidy on Subsidized Loans.
Unsubsidized Federal Direct Stafford Loan
You are responsible to pay the interest on unsubsidized Federal Direct Stafford Loans while you are in school.
- Interest begins to accrue immediately upon disbursement of the loan.
- You may choose not to pay the interest payments while in school. The interest will be added to the unpaid principal amount of the loan. This is called “capitalization,” and it can substantially increase the total amount repaid.
- Capitalization increases the unpaid principal balance of the loan. You will be charged interest on the increased principal amount.
- Paying the interest while in school will save students some money in the long run.
Fees
Federal Direct Stafford Loans are subject to loan fees.
- Loan fees are set by the federal government and the amounts vary depending on when the loan was disbursed.
- There is a 1% loan fee* applied to each Stafford loan taken off at the time of disbursement.
- Because the Budget Control Act of 2011 (the sequester law) remains in effect, sequester-required changes to the loan fees are as follows:
- Beginning October 1, 2020, for any loans first disbursed on or after October 1, 2020, and before October 1, 2025, the loan fee is 1.057%.
Stafford Loans have annual loan limits, based on dependency status and grade level. Proration applies to all undergraduate loans.
These loan limits below represent the total of all subsidized and unsubsidized Federal Direct Stafford Loans a dependent undergraduate student may borrow at each level of study, for a single academic year.
Dependent Undergraduates:
| Grade Level | Semester Hours | Subsidized | Additional Unsubsidized | Unsubsidized | Total Annual Maximum |
|---|---|---|---|---|---|
| Freshman | 0-29 | $3,500 | - | $2,000 | $5,500 |
| Sophomore | 30-61 | $4,500 | - | $2,000 | $6,500 |
| Junior | 62-93 | $5,500 | - | $2,000 | $7,500 |
| Senior | 94+ | $5,500 | - | $2,000 | $7,500 |
Independent Undergraduates and dependent students whose parents can’t get a Federal Direct Parent PLUS Loan:
| Grade Level | Semester Hours | Subsidized | Additional Unsubsidized | Unsubsidized | Total Annual Maximum |
|---|---|---|---|---|---|
| First year | 0-29 | $3,500 | $4,000 | $2,000 | $9,500 |
| Sophomore | 30-61 | $4,500 | $4,000 | $2,000 | $10,500 |
| Junior | 62-93 | $5,500 | $5,000 | $2,000 | $12,500 |
| Senior | 94+ | $5,500 | $5,000 | $2,000 | $12,500 |
Aggregate Loan Maximums
These loan limits below represent the total of all subsidized and unsubsidized Federal Direct Stafford Loans a dependent undergraduate student may borrow aggregately for their undergraduate studies:
| Dependency Status | Subsidized | Subsidized & Unsubsidized Total |
|---|---|---|
| Dependent | $23,000 | $31,000 |
| Independent | $23,000 | $57,500 |
Repayment information regarding Stafford Loans
After you graduate, leave school or drop below half-time enrollment, you will have a six-month grace period before having to begin repayment. You are required to complete Exit Counseling when leaving ÃÛѨÊÓƵ. Check out the Exit Counseling Guide for Federal Student Loan Borrowers of Direct Loans and Federal Family Education Program Loans.
- You will be contacted by their servicer, a company that handles the billing and other services on the federal student loan, during their grace period regarding their repayment.
- You will be automatically placed in the standard repayment plan, unless they choose to request a different plan.
- With the standard repayment plan, you will pay a fixed amount each month until the loans are paid in full.
- Your monthly payments will be at least $50. You will have up to 10 years to repay your loan(s).
- It is important to repay student loans. Failure to repay them results in default and has serious consequences.
- Track your loan history by accessing the National Student Loan Data System (NSLDS). NSLDS will allow you to see all federal loans you have received from all schools you have attended as well as find contact information for the loan servicer or lender for your federal student loans.
Your monthly payment under the standard repayment plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For that reason, having a 10-year limit on repayment, you may pay the least interest.
To calculate your estimated loan payments, use the US Department of Education's Repayment Estimator calculator. Using the Repayment Estimator, with an average interest rate of 4.48% and total Federal Direct Stafford Loan average debt for ÃÛѨÊÓƵ undergraduates of $27,986 an example repayment schedule would be:
| Repayment Plan | First Monthly Payment | Last Monthly Payment | Total Amount Paid | Projected Loan Forgiveness | Repayment Period |
|---|---|---|---|---|---|
| Standard | $290 | $290 | $34,805 | $0 | 120 Months |
| Graduated | $163 | $490 | $36,530 | $0 | 120 Months |
| Revised Pay as You Earn (REPAYE) |
$0 | $0 | $0 | $42,446 | 300 Months |
| Pay as You Earn (PAYE) | $0 | $0 | $0 | $53,173 | 240 Months |
| Income-Based Repayment (IBR) | $0 | $0 | $0 | $59,470 | 300 Months |
| IBR for New Borrowers | $0 | $0 | $0 | $53,173 | 240 Months |
| Income-Contingent Repayment (ICR) |
$0 | $0 | $0 | $62,413 | 300 Months |
- Note 1: Graduated Repayment Plan
This is an estimated monthly repayment amount for the first two years of the term and total loan payment. The monthly repayment amount will generally increase every two years, based on the gradation factor in the graduated repayment rules. - Note 2: The Extended Repayment Plan
Does not display, because it is only available to students who borrow amounts greater than $30,000.
To learn more about repayment plan options and utilize the federal loan calculators to determine which repayment plan is right for you, such as Standard, Extended, Graduated, Income-Contingent or Income-Sensitive, Income-Based (IBR), Pay As You Earn (PAYE), or Revised Pay As You Earn (REPAY), or to learn about consolidating your federal student loans visit Studentaid.gov.
Terms and conditions
Terms and conditions of the loan are located with the Master Promissory Note (MPN), which you are encouraged to sign online. Preview a read-only version of the Master Promissory Note (MPN) for subsidized/unsubsidized.
Failure to repay a loan
Default (failing to repay a loan) is defined in detail in the Terms and Conditions section of the MPN. Serious consequences occur with default:
- The United States Department of Education (ED) will require you to immediately repay the entire unpaid amount of your loan
- ED may sue you, take all or part of your federal and state tax refunds and other federal or state payments, and/or garnish your wages so that your employer is required to send ED part of your salary to pay off your loan
- ED will require you to pay reasonable collection fees and costs, plus court costs and attorney fees
- ED will report your default to national consumer reporting agencies
- You may be denied a professional license
- You will lose eligibility for other federal student aid and assistance under most federal benefit programs
- You will lose eligibility for loan deferments