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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
- 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
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 |
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| 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. |
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
| 6.8%** |
for Undergraduate Direct Subsidized loans after July 1, 2013 |
| 3.4% |
for Undergraduate Direct Subsidized loans disbursed between July 1, 2011 and June 30, 2013 |
| 6.8% |
for Undergraduate Direct Unsubsidized loans disbursed after July 1, 2010 |
| 6.8% |
for Graduate loans disbursed after July 1, 2010 |
**Interest rate for Undergraduate Direct Subsidized loans are scheduled to go up to 6.8% as of July 1, 2013 unless it is change in legislation.
Fees
| 1.051% is deducted from the loan proceeds when disbursed. For example, on a $5,500 Direct Stafford loan, $55 will be kept as a loan fee and therefore $5,445 will be credited to the students account when it is disbursed to the school. |
Applying for Direct Stafford Loans
- Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov
- Receive your final financial aid award from Carroll
- First time borrowers at Carroll need to complete your Direct Stafford Master Promissory Note and Entrance Counseling at https://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
- Complete Entrance Counseling at https://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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