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Stafford Loan Information

Stafford Loan Information

Direct Subsidized Loans

  • This is a need-based loan.
  • You must be enrolled at least half time to qualify.
  • For undergraduate students, the interest rate is 3.86 percent for loans disbursed between July 1, 2013 and June 30, 2014.
  • For graduate students, the interest rate is fixed at 6.8 percent. Effective July 1, 2012, graduate and professional students will not receive new subsidized Direct Loans.
  • Interest does not accrue on the loan while you are in school and during authorized periods of deferment.
  • Interest does not accrue on the loan during the grace period (the first six months after you cease to be enrolled at least half time) if your loans were disbursed before July 1, 2012. For loans first disbursed between July 1, 2012 and June 30, 2014, the interest will not be subsidized during the grace period.
  • During periods of forbearance, you will be responsible for interest that accrues on your subsidized loans.
  • You begin repayment six months after you are no longer enrolled at least half time.

Direct Unsubsidized Loans

  • This is not a need-based loan.
  • You must be enrolled at least half time to qualify.
  • For undergraduate students, the interest rate is 3.86 percent for loans disbursed between July 1, 2013 and June 30, 2014.
  • For graduate students, the interest rate is 5.41 percent for loans disbursed between July 1, 2013 and June 30, 2014.
  • You are responsible for paying the interest on your loan from the date of disbursement.
  • You must begin repayment six months after you are no longer enrolled at least half time.

Stafford Loan Limits

Annual Loan Limits for Graduate/Professional Students
 

Loans for loan periods beginning on or after July 1, 2012

 

Subsidized Loan Maximum

Unsubsidized Loan Maximum

All Graduate and Professional Students

$0

$20,500

Certain Health Professions Students

$0

$47,167*

*Based on the length of the enrollment period.

Interest rate is 5.41% fixed.  FAFSA is required.  Rate changes annually on July 1st.

The aggregate loan limit for graduate and professional students remains unchanged at $138,500 ($224,000 for DO, DPM and MPH), not more than $65,500 of which may be in subsidized loans.

The annual limits are maximums per year based on eligibility and cost of attendance.  Aggregate limits are lifetime limits.  If you have considerable Stafford debt prior to entering DMU you may exhaust your Stafford eligibility.

To check your prior Stafford loans you can:

  • Contact your lender.
  • Check your Student Aid Report (SAR); the results from the FAFSA.
  • Access the National Student Loan Database (NSLDS) with your Federal PIN number at www.NSLDS.ed.gov.

Direct Subsidized Loan Time Limitation

Federal Grad PLUS loan

Direct PLUS Loans

  • The loan is in your name, and you are responsible for the loan (not your parent).
  • You can borrow up to your cost of attendance, less any other financial assistance.
  • You are responsible for paying the interest on your loan from the date of disbursement.
  • The interest rate is 6.41 percent for loans disbursed between July 1, 2013 and June 30, 2014.
  • You must be enrolled at least half time to qualify.
  • You begin repayment as soon as your loan is disbursed; however, the Direct Loan Program might automatically apply an in-school deferment to your loan as long as you remain enrolled at least half time. You may request a 6-month deferment after you drop below half-time enrollment.
Effects of accrued interest and capitalization:
Unsubsidized Loan borrowed over a 1-year period, plus 6 month grace $10,000
Interest accrued and capitalized at repayment (6.8%) $1,064
New balance when repayment begins $11,064

Borrower has the option to make Unsubsidized Stafford and/or GradPlus loan interest payments while in school.

To continue, please answer the following questions

  1. Prior Stafford borrowing could exhaust my Stafford Loan eligibility prior to completing the program.
    • True
    • False
  2. Subsidized and Unsubsidized Staffords have the same interest rate.
    • True
    • False