The Stafford Loan is available through the federal government to undergraduate or graduate students who complete the FAFSA.
If you are borrowing with a Stafford Loan:
All students must complete a Master Promissory Note (MPN). The MPN is the application and promissory note for all Direct Stafford Loans - Subsidized and Unsubsidized. You will complete the MPN only the first time you borrow a Direct Loan. For all subsequent years, you only need to submit a FAFSA and accept your loans via your award letter. Your MPN is good for 10 years from the date the note was signed and can be used for any loan period that begins within the 10-year time frame.
Once you have accepted your Direct Loan as listed on your award letter, complete the Direct Loan MPN at
www.StudentLoans.gov. Use your U.S. Department of Education PIN number to sign in to the website.
If you are a first-time Direct Loan borrower, you need to complete Entrance Loan Counseling at
www.StudentLoans.gov. You are required to complete Entrance Counseling before funds can be disbursed to your student account.
The Direct Stafford Loan comes in two forms:
• Subsidized Direct Stafford Loan—This loan is need-based. Payment of the principal is deferred while you are enrolled at least half-time and for six months after your enrollment drops below half-time status. The interest rate is a fixed rate of 3.4%. This loan is only available to undergraduate students.
• Unsubsidized Direct Stafford Loan—This loan is not need-based; payment of the principal is deferred while you are enrolled at least half-time and for six months after your enrollment period drops below half-time status. Interest on this loan begins accruing at the time of disbursement. The interest rate is fixed at 6.8%. You have the option of making quarterly interest payments while in school or allowing the interest to be capitalized (added to the principal).
Fees: A 1% net origination fee is deducted from the loans prior to disbursement.
Loan Limits: The maximum (combined subsidized and unsubsidized) annual limits for these loans are as follows:
Grade Level |
Dependent |
Additional Unsub.
for Dependents |
Independent |
| |
|
|
|
| Freshman |
$3,500 |
$2,000 |
$9,500 |
| (1 – 29 credits) |
|
|
|
|
|
|
|
| Sophomore |
$4,500 |
$2,000 |
$10,500 |
| (30 – 59 credits) |
|
|
|
|
|
|
|
| Junior |
$5,500 |
$2,000 |
$12,500 |
| (60 – 89 credits) |
|
|
|
|
|
|
|
| Senior |
$5,500 |
$2,000 |
$12,500 |
| (90 or more credits) |
|
|
|
|
|
|
|
| Graduate |
|
|
$20,500 |