There are two types of Federal Direct Stafford Loans. The subsidized loan is based on financial need, and the federal government pays the interest on the loan while the student is enrolled at least half-time, during the six-month grace period and during periods of deferment. The unsubsidized loan is not need based, and the student must pay the interest during periods of enrollment and/or deferment. However, the student may choose to allow the interest to capitalize. Students may have eligibility for both subsidized and unsubsidized Direct Loans.
Criteria: Enrolled at least half time; meeting the Satisfactory Progress Policy requirements.
Amount: A dependent student may borrow up to $5,500 per academic year as a freshman, $6,500 per academic year as a sophomore, and $7,500 per academic year as a junior or senior; the cumulative maximum is $31,000*. An independent student may borrow up to $9,500 per academic year as a freshman, $10,500 per academic year as a sophomore, and $12,500 per academic year as a junior or senior; the cumulative maximum is $57,500*. A graduate student may borrow up to $20,500 per academic year; the cumulative maximum is $138,500 (no more then $65,500 of which can be subsidized).
*No more then $23,000 of which can be subsidized
Interest: For loans disbursed on or after July 1, 2009:
Undergraduate subsidized: fixed at 5.6 percent
Undergraduate unsubsidized: fixed at 6.8 percent
Graduate subsidized and unsubsidized: fixed at 6.8 percent
Proration: Prorating is required for undergraduate students only. the annual maximum loan amount an undergraduate student may borrow must be prorated when the student is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year (eg, senior graduating in December).
The loan amount is determined by multiplying the annual loan limit for the student's grade level by the lesser of these two fractions:
| Number of credit hours enrolled in the program | or | 1 |
| 30 | 2 |
Repayment: of principal begins six months after the student graduates, leaves school or drops below half-time enrollment.
Other: More information about Direct Loan Entrance Counseling and Direct Loan Exit Counseling.