Federal Direct Subsidized Stafford Loan

 

Students who are first-time borrowers of the Federal Direct Stafford Loans, must complete an electronic Master Promissory Note (MPN) and on-line Entrance Loan Counseling to receive the funds. In most cases, the student will be required to complete the MPN and entrance counseling session only once during their years in college.

 

Lender

Federal Government

Interest Rate - Undergraduate Students

Fixed at 6.8% for loans received July 1, 2006 - June 30, 2008

Fixed at 6.0% for loans received July 1, 2008 - June 30, 2009

Fixed at 5.6% for loans received July 1, 2009 - June 30, 2010

Fixed at 4.8% for loans received July 1, 2010 - June 30, 2011

Fixed at 3.4% for loans received July 1, 2011 - June 30, 2012

Interest Rate - Graduate Students

Fixed at 6.8% (for loans received after July 1, 2006)

Interest Free in School

Yes

2.0% for loans received July 1, 2008 - June 30, 2009

1.5% for loans received July 1, 2009 - June 30, 2010

1.0% for loans received after July 1, 2010

1.0% for loans received after June 30, 2009

1.5% for loans received prior to July 1, 2009

Annual Maximums

$3,500 freshman (0-29 earned hours)

$4,500 sophomore (30-59 earned hours)

$5,500 junior and senior (60+ earned hours)

$8,500 graduate and professional

Cumulative Maximums

$23,000 undergraduate

$65,500 graduate (includes amount borrowed as undergraduate)

Grace Period

6 Months

Standard Repayment Period

Up to 10 years (additional repayment options beyond 10 years may be available)

Minimum Payment

$50 per month

Additional information is available on the Federal Student Aid web site.