Federal Direct Subsidized and Unsubsidized Stafford Loans

The terms of the need based Federal Direct Subsidized Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as subsidized because no interest is charged while the student is enrolled in school and during the six month grace period.

The terms of the non-need based Federal Direct Unsubsidized Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as unsubsidized because the interest is not paid by the federal government while the student is enrolled in school. Interest on Direct Unsubsidized Loans begins to accrue after disbursement of the loan funds, however, the student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time of repayment.

Additional terms of the Federal Direct Subsidized and Unsubsidized Stafford Loans, subject to federal regulation, include:

• Interest Rates and Fees



Subsidized Interest Rate:	6.8%
Unsubsidized Interest Rate:	6.8%
Origination Fees:	1.0%*

*The Federal Direct Subsidized and Unsubsidized Stafford Loans have a 1.0% origination fee, which will be deducted from the gross amount of the loan borrowed.


• Repayment begins six months after the student ceases to be enrolled in school on at least a half-time basis and generally extends over a 10 year period.


• Annual borrowing limits for Dependent Students



Year	Subsidized	Unsubsidized**	TOTAL
1	$3,500	$2,000	$5,500
2	$4,500	$2,000	$6,500
3,4	$5,500	$2,000	$7,500

• Annual borrowing limits for Independent Students**



Year	Subsidized	Unsubsidized**	TOTAL
1	$3,500	$6,000	$9,500
2	$4,500	$6,000	$10,500
3,4	$5,500	$7,000	$12,500

**If a Federal Direct PLUS Loan is applied for by a parent and denied based on credit, a dependent undergraduate may borrow at the independent levels listed above.