Federal Direct Stafford Loan Overview (Undergraduate Students)

The Federal Direct Stafford Loan Program is available to students who have filed a FAFSA and who are enrolled at least half time (six or more credits per semester) in an eligible program.

There are two types of Federal Direct Stafford loans:

Subsidized loans are based upon demonstrated financial need. Students are not charged any interest while enrolled in school at least half time (six or more credits per semester). The federal government subsidizes the interest. The interest rate for Federal Subsidized Loans for the 2014-2015 academic year is 4.66%

Unsubsidized loans are not awarded on the basis of financial need. The loan accrues interest from the time it is disbursed until it is paid in full. If you allow the interest to accrue while you are in school or during repayment periods, this interest will be capitalized. Interest that is capitalized will be added to the principal amount of your loan, and additional interest will be based on the higher amount. The interest rate for Federal Unsubsidized Loans for the 2014-2015 academic year is 4.66%. Note: Students can pay the interest on their unsubsidized Stafford loan while in school.  Students interested in making payments should contact their servicer directly.

For loans first disbursed on or after December 1, 2013 and before September 30, 2014 the loan fee is 1.072%, which will be deducted from each loan disbursement.

Annual Stafford Loan Limits

Dependent Undergraduate Student


Class Year


Base Amount

Additional
Unsubsidized Amount

Total Available 
to Borrow

Origination
Fee (1.072%)
Total Amount 
Disbursed

Freshman

$3,500

$2,000

$5,500

$58.96 $5,441.04

Sophomore

$4,500

$2,000

$6,500

$69.68 $6,430.32

Junior

$5,500

$2,000

$7,500

$80.40 $7,419.60

Senior

$5,500

$2,000

$7,500

$80.40 $7,419.60

 

Independent Undergraduate Student


Class Year


Base Amount

Additional
Unsubsidized Amount

Total Available
to Borrow

Origination
Fee (1.072%)
Total Amount 
Disbursed

Freshman

$3,500

$6,000

$9,500

$101.84 $9,398.16

Sophomore

$4,500

$6,000

$10,500

$112.56 $10,387.44

Junior

$5,500

$7,000

$12,500

$134.00 $12,366.00

Senior

$5,500

$7,000

$12,500

$134.00 $12,366.00