What is a Direct Stafford Loan?

First-time borrowers on or after July 1,cannot receive subsidized loans for more than percent of the published length of their degree program. You pay a 4. This website will provide you with instructions on how to electronically fill out your Master Promissory Note and Entrance Interview. Others prefer the immediate benefit of below-market processing fees. Students must be enrolled at least half-time and in good academic standing. Here's a look at the differences between these types of charitable organizations.


Who Qualifies for Federal Direct Loans?

Yes, there is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as shown in the chart below. The differences between Direct Subsidized and Unsubsidized Loans; Direct Subsidized Loan Direct Unsubsidized Loan; Based on financial need: Not based on financial need: The federal government pays the interest on the loan while you are enrolled in school at least half-time.: Interest begins accumulating as soon as funds are disbursed until the . Annual loan limits are lower for Direct Subsidized Loans than for Direct Unsubsidized Loans. The total aggregate loan amounts are capped at $23, for subsidized loans. What are Direct Unsubsidized Loans?

How Much Can I Borrow?

First-Time Student Loan Borrowers Must Complete Direct Loan Entrance Counseling

Capitalizing the interest will increase the amount you have to repay. More information regarding student loans, program requirements, and managing repayment can be found at https: The maximum amount you can borrow each academic year depends on your grade level and dependency status. See the chart below for annual and aggregate lifetime borrowing limits. You may not be eligible to borrow the full annual loan amount because of your expected family contribution or the amount of other financial aid you are receiving.

To see examples of how your Subsidized or Unsubsidized award amount will be determined. If you are a first-time borrower on or after July 1, , there is a limit on the maximum period of time measured in academic years that you can receive Direct Subsidized Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than percent of the published length of your program. See your financial aid adviser https: Alberta Gator is a first year dependent undergraduate student.

She is, however, eligible for an Unsubsidized Loan. The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and classification in college. The annual and aggregate loan limits are listed in the charts below.

Contact your adviser to determine if you are eligible. Interest on unsubsidized loans is added to your loan balance while you are in school, during the six-month grace period and during periods of deferment.

However, you can choose to pay the interest instead of letting it accrue, which will reduce the amount of interest you'll pay over the life of the loan. Unsubsidized loans are limited in the amount you can borrow per year and in total. Dependent students can borrow:. If the total amount borrowed over the course of your education reaches the aggregate loan limit, you cannot borrow additional Direct Stafford Loans.

However, if you repay some of the loans to bring the outstanding balance below the aggregate limit, you can borrow again up to the loan limit. Each school where you've been accepted will send an award letter that details your financial aid package and the amount you are eligible to receive.

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Please try again or use our Log In Assistance Tool. What is a Direct Stafford Loan? April 12, Author: