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.
Obtain information regarding grace periods and repayment plans from the Federal Student Aid web site.
Important information for graduate and professional students: The interest subsidy has been eliminated on Federal Direct Student Loans for periods of enrollment beginning on or after July 1, 2012. To find out how this may impact you, go to our Graduate and Professional Federal Direct Loans web page.
Lender |
Federal Government |
|---|---|
Interest Rate - Undergraduate Students |
Fixed at 6.8% for loans disbursed July 1, 2006 - June 30, 2008 Fixed at 6.0% for loans disbursed July 1, 2008 - June 30, 2009 Fixed at 5.6% for loans disvursed July 1, 2009 - June 30, 2010 Fixed at 4.5% for loans disbursed July 1, 2010 - June 30, 2011 Fixed at 3.4% for loans disbursed July 1, 2011 - June 30, 2012 Fixed at 6.8% for loans disbursed after July 1, 2012 |
Interest Rate - Graduate Students |
Fixed at 6.8% (These loans will not be available for loan periods beginning on or after July 1, 2012.) For additional information, go to our Graduate and Professional Federal Direct Loan web page. |
Interest Free in School |
Yes |
1.0% for loans disbursed on or after July 1, 2010 |
|
Annual Maximums |
$3,500 freshman (0-29 earned hours) $4,500 sophomore (30-59 earned hours) $5,500 junior and senior (60+ earned hours) |
Cumulative Maximums |
$23,000 undergraduate $65,500 graduate (includes amount borrowed as undergraduate) |