Stafford Loan Information
Direct Subsidized Loans
Graduate students are not eligible for Subsidized Stafford loans.
- This is a need-based loan.
- You must be enrolled at least half-time to qualify.
- For undergraduate students, the interest rate is 4.66 percent for loans disbursed between July 1, 2014 and June 30, 2015.
- 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.
- FAFSA is required.
- Interest rates are set annually on July 1st and are fixed for the life of the loan.
- For undergraduate students, the interest rate is 4.66 percent for loans disbursed between July 1, 2014 and June 30, 2015.
- For graduate students, the interest rate is 5.41 percent for loans disbursed between July 1, 2013 and June 30, 2014.
- For graduate students, loans first disbursed on or after July 1, 2014 and before July 1, 2015 the rate is 6.21 percent.
- For graduate students, loans first disbursed on or after July 1, 2015 and before July 1, 2016 the rate is 5.84 percent.
- Current fee for the Stafford loan is 1.073 percent for loans disbursed October 1, 2014 through September 30, 2015
- 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.
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) at www.NSLDS.ed.gov.
Direct Subsidized Loan Time Limitation
- If you receive your first federal student loan after June 30, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period.” Learn more about the Direct Subsidized Loan Time Limitation.
- https://studentloans.gov/myDirectLoan/directSubsidizedLoanTimeLimitation.action
Federal Grad PLUS loan
Direct PLUS Loans
- The loan is in your name, and you are responsible for the loan (not your parent).
- You must be enrolled at least half-time to qualify.
- FAFSA is required.
- 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.
- Interest rates are set annually on July 1st and are fixed for the life of the loan.
- The interest rate is 6.41 percent for loans disbursed between July 1, 2013 and June 30, 2014.
- For Direct Grad PLUS loans first disbursed on or after July 1, 2014, and before July 1, 2015, the interest rate is 7.21 percent.
- For Direct Grad PLUS loans first disbursed on or after July 1, 2015, and before July 1, 2016, the interest rate is 6.84 percent.
- Current fee for the Grad PLUS loan is 4.292 percent for loans disbursed October 1, 2014 through September 30, 2015.
- 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.
- Department of Education will do a credit check. For Grad PLUS loan applicants with adverse credit, you will be required by the Department of Education to do additional Grad PLUS loan counseling. You will be notified by the Department of Education if you need to complete additional Grad PLUS loan counseling. If required, the loan will not be disbursed until this is complete.
| 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 |
For additional information go to www.studentaid.ed.gov/types/loans
Borrower has the option to make Unsubsidized Stafford and/or Grad Plus loan interest payments while in school.
To continue, please answer the following questions
- Prior Stafford borrowing could exhaust my Stafford Loan eligibility prior to completing the program.
- True
- False
Subsidized and Unsubsidized Staffords do have the same interest rate.
