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Federal Direct Loans

Effective with the 2010-2011 academic year, all Stafford loans must be processed exclusively through the William D. Ford Federal Direct Loan Program in which loan funds are obtained directly from the U.S. Department of Education. Other details include:

  • Must submit a FAFSA
  • Aid analysis determines type of Direct Loan:
    • Subsidized: Government pays interest until 6 months after the student graduates, drops below half-time status or withdraws
    • Unsubsidized: Student responsible for interest accrued while in school
  • Maximum eligibility for Direct Loan funds each year depends on academic level

    Freshmen (0-25 credits) $5,500
    Sophomores (26-59 credits) $6,500
    Juniors/Seniors (60+ credits) $7,500
  • For loans disbursed between July 1, 2014 and June 30, 2015, the interest rate will be fixed at 4.66% for subsidized loans and 4.66% for unsubsidized loans
  • Repayment begins 6 months after student graduates, drops below half-time status, or withdraws
  • If your parent has an adverse credit history, consider having him/her apply for the PLUS Loan. A dependent student whose parent is denied a Federal PLUS Loan may borrow an additional unsubsidized Direct Loan—which has a better interest rate and terms than most private, alternative loans. The maximum, additional unsubsidized amount is $4000 for freshmen/sophomores and $5000 for juniors/seniors.
  • Students who borrow Federal Direct Loans will have the loan information submitted to the National Student Loan Data System (NSLDS). This information will be accessible to guaranty agencies, lenders, and institutions determined to be authorized users of the system.
  • Additional information about Federal Direct Loans is available at Student Aid on the Web. Prospective and enrolled students can also tour Federal Direct Loan Exit Counseling.
  • New borrowers need to complete a Federal Direct Loan Master Promissory Note and Federal Direct Loan Entrance Counseling. You will need your FAFSA PIN to sign electronically. To apply for a PIN or to request a duplicate, proceed first to the PIN website.