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Federal Direct Stafford Loan

Those who qualify for need-based aid may borrow a subsidized Stafford Loan, and students who do not qualify may borrow an unsubsidized loan. Stafford loans are entirely in the student's name. 

Subsidized

  • Who Can Borrow: Students who demonstrate financial need as determined by the FAFSA.
  • Lender: Department of Education.
  • Loan Amount: Up to $3,500 for the freshman year, $4,500 for the sophomore year, and $5,500 for each of the junior and senior years.
  • Interest Rate: 3.73% for 2021-22. 2.75% for 2020-21. The federal government pays interest while the student is enrolled at least half-time. 
  • Fees: A 1.057% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2022. Use our online federal loan fee calculator to determine the impact of fees on your loan.
  • Repayment Terms: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year while the borrower is in repayment, he or she is required to pay at least $600 or the unpaid balance (whichever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment. To assist with planning, the Department of Education provides very helpful budget and repayment calculators.
  • Application Instructions: Complete an online entrance interview, and complete a Master Promissory Note (MPN) at www.studentloans.gov.  You will also need to complete a Free Application for Federal Student Aid (FAFSA) for the appropriate academic year.

Unsubsidized

  • Who Can Borrow: Students who do not qualify for the need-based subsidized Stafford Loan, or those who only have partial need-based Stafford eligibility.
  • Lender: Department of Education.
  • Loan Amount: Up to $5,500 for the freshman year, $6,500 for the sophomore year, and $7,500 for each of the junior and senior years (minus any subsidized loans they have received).
  • Interest Rate: 3.73% for 2021-22. 2.75% for 2020-21. Interest accrues while the student is in school and during loan deferment; the student doesn't need to pay the interest at this time, but the accumulated interest will be added to the principal and increase the amount to be repaid. The student has the option of making interest payments while in school. (Students can indicate this on their MPN. Payments will be made to the loan servicer). 
  • Fees: A 1.057% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2022. Use our online federal loan fee calculator to determine the impact of fees on your loan.
  • Repayment Terms: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year while the borrower is in repayment, he or she is required to pay at least $600 or the unpaid balance (whichever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment. To assist with planning, the Department of Education provides very helpful budget and repayment calculators.
  • Application Instructions: Complete an online entrance interview, and complete a Master Promissory Note (MPN) at www.studentloans.gov.  You will also need to complete a Free Application for Federal Student Aid (FAFSA) for the appropriate academic year.