Federal Subsidized/Unsubsidized Direct Loan Program
(Also known as Stafford Loan)
A subsidized loan is awarded on the basis of financial need. You won' be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school or during other periods of nonpayment, it will be capitalized - that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
How do I get this loan?
If you're a regular student enrolled in an eligible program at least half-time, you may receive a DL Stafford Loan. Apply using the FAFSA or Renewal FAFSA, just the way you would for other federal student aid.
Once you have been awarded a Stafford loan, you complete an online Master Promissory Note (MPN). The promissory note is a binding legal document; when you sign it, you're agreeing to repay your loan under certain terms. Read the note carefully and save it. You will also be required to complete Entrance Loan Counseling which explains your duty to repay the loan. To complete both of these items, please click here.
Loan Origination Fees
Loan origination fees are fees that the lender charges. These fees may range from 1% to 3%. For example, if you borrow $3,500 ($1,750 per semester), the lender may hold out $105 in origination fees for the year (or $52.50 per semester). So for the semester, you would then have $1,697.50 applied to your bill instead of the $1750. You are still required to repay whatever amount the lender holds out in these fees.
How much can I borrow?
|Combined Subsidized & Unsubsidized Annual Loan Limits|
|Dependent Students||Independent students|
|Freshman (<30 hrs) $5,500||Freshman (<30 hrs) $9,500|
|Sophomore (30-59 hrs) $6,500||Sophomore (30-59 hrs) $10,500|
|Junior/Senior (60+ hrs) $7,500||Junior/Senior (60+ hrs) $12,500|