Information About The Federal Student Direct Stafford Loan

The Federal Stafford Loan is automatically offered as part of a student’s financial aid award. The maximum loan amounts are:

• Freshman — $3500 Sub / $2000 Unsub
• Sophomore — $4500 Sub / $2000 Unsub
• Junior — $5500 Sub / $2000 Unsub
• Senior — $5500 Sub / $2000 Unsub
(Fifth year available if needed)

The Subsidized portion of the loan has a 0% interest rate while a student is enrolled full-time.

The Unsubsidized interest rate is a fixed rate and is set each year. Interest begins to accrue as soon as the loan is distributed. The entire loan is Unsubsidized if a family’s AGI exceeds $125,000. You can make interest payments to maintain principal amount while a student is in school, and the loan can be declined in part or in its entirety by notifying the college/university. It’s always a good idea for a student to have some “skin in the game” as it helps them focus on the fact that attending college isn’t a free ride. A student must complete an on-line Entrance Loan Counseling session (www.studentloans.gov) and complete a Master Promissory Note (MPN).