Federal Stafford Loans (subsidized and unsubsidized)
Quick Links: Direct Loan overview
Direct Loan MPN (first time Direct loan borrowers only)
Direct Loan entrance counseling (first time borrowers only)
Lender: U.S. Department of Education
Initial eligibility application: Free Application for Federal Student Aid (FAFSA)
Eligibility requirements: Enrolled at least half time (6 credits Undergraduate / 3 credits Graduate), making satisfactory academic progress
Current interest rates / loan limits
Direct loans for students
Interest accrual begins:
- Unsubsidized loans: Interest begins to accrue at disbursement
- Subsidized loans: Interest accrues according to date of first disbursement.
> First disbursement date prior to July 1, 2012 and on or after July 1, 2014 -- interest begins to accrue at the end of the six-month grace period.
> First disbursement date on or after July 1, 2012 and July 1, 2014 -- interest begins to accrue at the beginning of the six-month grace period.
Repayment begins: 6 months after ceasing at least half time enrollment in school
Standard Repayment Term: 10 years
Minimum Monthly Payment: $50
Direct Loan Servicer Information
Loan Repayment Information
150% Limit on Subsidized Loans
Due to the Moving Ahead for Progress in the 21st Century Act, a new borrower* on or after July 1, 2013 cannot receive subsidized loans for more than150 percent of the published length of the borrower’s educational program. The law also provides that a borrower who becomes ineligible for subsidized loans because of the 150 percent limit is ineligible for interest subsidy benefits on all subsidized loans first disbursed to that borrower on or after July 1, 2013.
*Generally, a first-time borrower is one who did not have an outstanding balance of principal or interest on a Direct Loan or on a FFEL Program Loan on July 1, 2013.
We encourage new subsidized Direct Loan borrowers to review supplemental entrance counseling about this regulation.
Last Updated: 2/20/2015