Federal Direct Stafford Loans (Subsidized and Unsubsidized)
- General Eligibility for Student Loans
- Steps to Apply for a Federal Direct Stafford Loan
- Other Loan Types
- Loan Repayment
These are low-interest, need-based and non-need-based loans provided by the federal government to help eligible students with school-related expenses.
You must be enrolled in six eligible credits to qualify for a student loan. Repayment begins six months after the student graduates, leaves school or drops below half-time status (six credits).
- The subsidized portion is need-based. The federal government pays the interest on this portion while the student is enrolled in at least six credits and during any authorized deferment periods.
- The unsubsidized portion is non-need-based. Interest begins to accrue from the date the loan is disbursed. The student is responsible for this amount and may pay this interest as it accrues. If not paid, the accumulated interest will capitalize when the loan goes into repayment. This adds to the expense of the loan.
Loan Limits
Annual loan limits are regulated by the government and are as follows:
Class Standing | Credits Earned | Base Eligibility | Additional Unsubsidized Eligibility |
---|---|---|---|
Freshman | 0-29 credits | $3,500 | $6,000 ($2,000 Dependent Students) |
Sophomore | 30 or more credits | $4,500 | $6,000 ($2,000 Dependent Students) |
*Junior/Senior | 60 or more credits | $5,500 | $7,000 ($2,000 Dependent Students) |
*Junior/Senior level loans are only available to students actively enrolled in a Bachelor’s Degree Program.
Note About Fall Only Loans: Schools must prorate loan limits for students enrolled in remaining periods of study shorter than an academic year. This can occur when a student is graduating in the Fall Semester because their enrollment will only be for the Fall Semester which is shorter than the standard academic year which runs for Fall and Spring. Fall-only loans will be prorated based on half of the annual loan limits and further prorated based on enrollment level.
Interest Rates
Interest rates for Direct Loans first distributed on or after July 1, 2024, and before July 1, 2025.
Loan Type | Borrower Type | Fixed Interest Rate |
---|---|---|
Direct Subsidized/Unsubsidized Loans | Undergraduate | 6.53% |
Direct PLUS Loans | Parents | 8.08% |
Interest rates for Direct Loans first distributed on or after July 1, 2023, and before July 1, 2024.
Loan Type | Borrower Type | Fixed Interest Rate |
---|---|---|
Direct Subsidized/Unsubsidized Loans | Undergraduate | 5.05% |
Direct PLUS Loans | Parents | 8.05% |
Aggregate Loan Amounts
Aggregate* loan amounts are set by the federal government. Undergraduate levels are as follows:
Dependent Students | $31,000 (of which no more than $23,000 can be subsidized) |
Independent Students | $57,500 (of which no more than $23,000 can be subsidized) |
*These aggregates are based on a four-year degree. Community college students should not exceed half of these levels.