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 4.66% for loans disbursed July 1 , 2014 - June 30, 2015

Fixed at 3.86% for loans disbursed July 1, 2013 - June 30, 2014

Fixed at 3.4% for loans disbursed July 1, 2011 - June 30, 2013

Fixed at 4.5% for loans disbursed July 1, 2010 - June 30, 2011

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

Interest Rate Cap

8.25% for loans disbursed on or after July 1, 2013

Interest Free in School

Yes

1.073% for loans disbursed October 1, 2014 - September 30, 2015

1.072% for loans disbursed December 1, 2013 - September 30, 2014

1.051% for loans disbursed July 1, 2013  - November 30, 2013

1.0% for loans July 1, 2010 - June 30, 2013

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)

Grace Period

6 months

Additional information on Federal Direct Loans is available on the U.S. Department of Education website.