FAQs on Student Loans
- Part of my award includes a Federal Direct Stafford Loan. What are my next steps?
Under the Federal Stafford Loan Program: freshmen may borrow up to $3,500, sophomores up to $4,500, and juniors/seniors up to $5,500 per academic year in the Subsidized Stafford Loan. Under this program students may also borrow an additional $2,000 each academic year in the Unsubsidized Stafford Loan. To review the next steps please visit our Stafford Loan Programs website.
Under the Federal Stafford Loan Program independent undergraduates have the same borrowing limits as dependent undergraduates for the Subsidized Stafford Loan. However, under this program independent students may borrow more than dependents in the Unsubsidized Stafford Loan: freshmen and sophomores may borrow up to $6,000 and juniors and seniors up to $7,000 per academic year. To review the next steps please visit our Stafford Loan Programs website.
Graduate students attending at least on a half-time basis may borrow up to a total of $20,500 in the Federal Unsubsidized Stafford Loan per academic year. To review the next steps please visit our Stafford Loan Programs website.
- What are some of the other important details about the loan programs?
There are processing fees:
All loans are subject to fees that are paid to the federal government to offset administrative and insurance costs. Fees are deducted proportionately from each disbursement. The current origination fee for Direct Stafford Loans is 1.069% and 4.276% for Direct PLUS Loans. After October 1st 2017, origination fees will be 1.066% for Direct Stafford Loans and 4.264% for Direct PLUS loans.
There are special disbursement terms for these loans:
Your loan will be disbursed in two or more installments. Loan proceeds are sent directly to the University, either by electronic transmission or check. Loan proceeds for first-time borrowers may not be disbursed until 30 days after the first day of classes. You will be notified when the funds arrive.
- What is the difference between a Subsidized Stafford Loan and an Unsubsidized Stafford Loan?
The term subsidized means that the federal government will be covering the interest payments on your loan while you are in school. The term unsubsidized means that the student, rather than the federal government, will be responsible for interest payments while you are in school.
- When do I start repaying my Federal Stafford Loan(s)?
The principle plus interest for your Federal Stafford Loan will begin 6 months after graduation and you have 10 years to complete the payments.