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Federal Direct Student Loans
All students who complete the FAFSA and are eligible to be considered for financial aid may receive the Federal Direct Student Loan.
This loan may be Subsidized or Unsubsidized (or a combination of both), and is often referred to as the Stafford Loan.
This loan is borrowed and repaid by the student.
A student's eligibility is determined by the total cost of attendance, results of the FAFSA, and other financial aid resources.
- Subsidized Loan
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The federal government pays the interest on this loan while you are in school at least half time, during your six month grace period after you leave school, and during any deferment periods.
You must have financial need to qualify for this type of loan.
- Unsubsidized Loan
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You will be charged interest on this loan from the time the loan is disbursed until it is paid in full.
You may allow interest to accumulate until repayment, at which time it will be capitalized.
We encourage you to make quarterly interest payments, if possible.
Financial need is not required to receive this loan.
Interest Rates
The current interest rate for the 2009-2010 school year is fixed for the life of the loan.
2009-10 Interest Rates
| | Subsidized | Unsubsidized |
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| Undergraduate | 5.6% | 6.8% |
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| Graduate | 6.8% | 6.8% |
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Loan Fees
The U.S. Department of Education will charge a 1.5% loan origination fee for processing your loan.
However, direct loan borrowers receive an interest rate rebate of 1.0%, reducing the up front fee to 0.5%.
Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit.
The loan origination fee is deducted proportionately from each disbursement of your student loan.
Maximum Annual Loan Amounts
| Borrower's Academic Level | Dependent Students | Independent Students |
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| Total Amount of Subsidized and Unsubsidized | Subsidized Loan Limits |
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Freshman
(0-44 Hrs) | $5,500 | $9,500 | No more than $3,500 |
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Sophomore
(45-89 Hrs) | $6,500 | $10,500 | No more than $4,500 |
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Junior & Senior
(90+ Hrs) | $7,500 | $12,500 | No more than $5,500 |
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| Graduate | N/A | $20,500 | No more than $8,500 |
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| Associate Degree | $6,500 | $10,500 | No more than $4,500 |
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Eligibility Requirements
To be eligible for the Federal Direct Stafford Loan you must meet the following eligibility requirements:
- Complete an EMPN and Entrance Counseling (if a first-time borrower).
- Complete Student Loan Decisions if you have had previous loans.
- Be enrolled at least half time (6 hours for undergraduates or 5 graduate hours for graduate students).
- Be enrolled in a degree-seeking program.
- Not be in default on a previous student loan.
Disbursements
Disbursements are applied to your university bill, i.e., student account, each quarter.
If your aid exceeds your charges, your refund will be mailed to your local address.
Direct deposit is available.
Repayment
You have a six month grace period before you have to start paying back your loan.
Your loan repayment begins six months after the day you graduate, leave school, or cease to be enrolled at least half time.
Each loan has only one grace period.
If you return to school after the grace period has expired, your loan may qualify for a deferment while enrolled.
Your loan would return to a repayment status after you leave school.
There is no additional grace period.
If you would like to see approximately what your loan payments will be, you can use the monthly repayment calculator on the Direct Loan web site.
Select "Interactive Calculators" for information on the repayment plans available and the monthly repayment calculators.
Questions concerning repayment should be directed to the Direct Loan Servicing Center at 1-800-848-0979.
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