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Federal Direct Stafford Loan - Subsidized and Unsubsidized
 
 

Federal Direct Stafford Loan General Information

View the Department of Education's Direct Loan Basics for Students brochure

Direct Subsidized and Unsubsidized Stafford Loans

Direct Subsidized Stafford Loan

  • Available to undergraduate students only
  • Awarded based on financial need determined by the FAFSA
  • Student must be enrolled at least half time
  • No interest accrues while student is enrolled at least half time
  • For loans disbursed between 7/1/12 and 7/1/14, students are not eligible for an interest subsidy during their six-month grace period and therefore are responsible for paying any accrued interest.
  • No repayment required while student is enrolled at least half time
  • One six-month grace period after the student is no longer enrolled half time before repayment begins
  • Standard repayment is 10 years
  • Maximum period of time student can receive Subsidized loans is 150% of the published length of their program (typically 6 full-time academic years for most Carroll students). Click here for more information.

Direct Unsubsidized Stafford Loan

  • Student must be enrolled at least half time
  • Interest starts accruing at the time of disbursement
  • No repayment required while student is enrolled at least half time
  • One six-month grace period after the student is no longer enrolled half time before repayment begins
  • Standard repayment is 10 years

Annual Maximums

$5,500 Dependent Undergrad Freshman 1-27 credits earned
$6,500 Dependent Undergrad Sophomore 28-59 credits earned
$7,500 Dependent Undergrad Junior and above 60+ credits earned
$20,500 Graduate Students  

Independent students (per the FAFSA) and student's parents who have been denied the Federal Parent PLUS loan can borrow an additional Direct Unsubsidized Stafford Loan amount up to $4,000 for Freshman and Sophomore years, and $5,000 after that.

*If a student's grade level increases during the academic year, please contact the Financial Aid Office in writing (finaid@carrollu.edu) and request the additional loan funds.

Cumulative Maximum Total Debt

$31,000 Dependent Undergraduate Students
$57,500 Independent Undergraduate Students
$138,500 Graduate Students (includes amounts borrowed as undergrad students)

Interest Rates

4.66% for Undergraduate Direct Subsidized and Unsubsidized loans between July 1, 2014 and June 30, 2015
3.86% for Undergraduate Direct Subsidized and Unsubsidized loans between July 1, 2013 and June 30, 2014
6.21% for Graduate Direct Unsubsidized loans disbursed between July 1, 2014 and June 30, 2015
5.41% for Graduate Direct Unsubsidized loans disbursed between July 1, 2013 and June 30, 2014

Fees

Fees are deducted from the Direct Subsidized and Unsubsidized loan proceeds when they are disbursed.

1.072%
For loans first disbursed after December 1, 2013 and before October 1, 2014 (For example, on a $5500 loan, $58 will be kept as a loan fee and therefore $5,442 will be credited to the students account when it is disbursed to the school.)

1.073%
For loans first disbursed after October 1, 2014 and before October 1, 2015 (For example, on a $5500 loan, $59 will be kept as a loan fee and therefore $5,441 will be credited to the students account when it is disbursed to the school.)

 

Applying for Direct Stafford Loans

  1. Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov
  2. Receive your final financial aid award from Carroll
  3. First time borrowers at Carroll need to complete your Direct Stafford Master Promissory Note and Entrance Counseling at studentloans.gov
    • Login clicking the green "Sign In" button located in the Manage My Direct Loan box in the upper left of the page
    • Select "Complete MPN" on the left-hand side under the Master Promissory Note bullet
    • Select Direct Subsidized/Unsubsidized and enter in the required information
  4. Complete Entrance Counseling at studentloans.gov
    • The Federal Government requires that all first time Federal Direct Stafford Loan borrowers complete an entrance counseling session before they receive any loan funds. This session is designed to provide the borrower with important information about the Federal Direct Stafford Loan program, including your rights and responsibilities as a borrower.
    • Login clicking the green "Sign In" button located in the Manage My Direct Loan box in the upper left of the page if not already logged in
    • Select "Complete Entrance Counseling" on the left-hand side under the Counseling bullet

Exit Counseling

  • Federal regulations require students to complete this once you graduate from Carroll or your enrollment drops below half time status
  • Provides the borrower with important information regarding your rights and responsibilities as a borrower.
  • Assists you on how to manage repaying your student loans and what you can expect
  • Complete on line at http://www.nslds.ed.gov/nslds_SA/SaEcWelcome.do.

 

 
 
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