Federal Direct Stafford Loan
In order to receive a Federal Direct Stafford Loan, all students must complete a Master Promisorry Note (eMPN) and first time Stafford Loan borrowers must also complete the Entrance Counseling requirement.
The Direct Loan (DL) website is www.studentloans.gov
There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized. The subsidized loan is interest free while the student is in school and is awarded based on financial need. Interest accrues on the unsubsidized loan while the student is enrolled in school. The borrower may opt to pay it as it accrues, or allow it to accrue and capitalize. The unsubsidized loan is a non-need based loan program. There is an 8.25% cap on the Federal Direct Stafford loan.
The maximum Federal Direct Stafford Loan per academic year is:
- for dependent freshmen (0-29 earned credits): $5,500 ($3500 subsidized)
- for dependent sophomores (30-59 earned credits): $6,500 ($4500 subsidized)
- for dependent juniors & seniors (60+ earned credits): $7500 ($5500 subsidized)
- for Graduate students : $20500 (8500 subsidized)
- An independent student may borrow an additional $4,000 Federal Direct Unsubsidized Stafford Loan per year as a freshman or sophomore and an additional $5,000 Federal Direct Unsubsidized Stafford Loan per year as a junior or senior. To be eligible for a loan, a Student must be in a degree program and enrolled in at least 6 credit hours per semester.
- Graduate students MUST be enrolled part-time (6-8 credits) at time of disbursement to receive the Federal Direct Stafford Loan. Graduate students enrolled in less than 6 credits are considered less than half time and may apply for an Alternative Loan to cover the cost of education.
Stafford Loan Limits (beginning 7/1/09)
The chart below provides information about the maximum loan amounts for which you may be eligible. Federal regulations will not allow total aid to exceed the cost of attendance.
| Annual Federal Direct Stafford Loan Limits |
Subsidized/ Unsubsidized Loan Eligibility for Dependent Students* |
Subsidized/Unsubsidized Loan Eligibility for Independent Students |
| 1st Year Undergraduate |
| Full Academic Year |
$5,500 ($3500 subsidized) |
$9500 ($3500 subsidized) |
| Less than a Full Academic Year |
Prorated |
Prorated |
| 2nd Year Undergraduate |
| Full Academic Year |
$6,500 ($4500 subsidized)
|
$10,500 ($4500 subsidized)
|
| Less than a Full Academic Year |
Prorated |
Prorated |
| 3rd, 4th, or 5th Year Undergraduate |
Teacher Certification or Second Bachelor's Degree
|
$7500 ($5500 subsidized)
|
$12500 ($5500 subsidized) |
| Full Academic Year |
$7500 ($5500 subsidized) |
$12500 ($5500 subsidized) |
| Less than a Full Academic Year |
Prorated |
Prorated |
| Graduate or Professional Student |
Not Applicable |
$20500 ($8500 subsidized) |
Total Borrowing Allowed
(sum of all years) |
| Dependent Undergraduate |
$31,000 ($23,000 max subsidized) |
|
| Independent Undergraduate* |
$57,500 ($23,000 max subsidized) |
|
| Graduate/Professional |
$138,000 ($65,000 max subsidized) |
(includes borrowing on an undergraduate level) |
| * Dependent students whose parents are determined ineligible for the Federal Direct PLUS loan may borrow the additional Unsubsidized Federal Direct Stafford loan. |
Stafford Loan MPN and Entrance Counseling Instructions
Exit Counseling must be completed once the student is no longer enrolled in at least 6 credits at Shippensburg University. Exit Counseling can be completed at http://www.nslds.ed.gov/.