Federal Direct Stafford Loan
BUDGET CONTROL ACT OF 2011 AND THE CONSOLIDATED APPROPRIATIONS ACT, 2012 bring changes to the Federal Direct Stafford Loan program. Please read here.
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 Federal Direct Stafford Loan 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 enrolled 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 a 8.25% cap on the Federal Direct Stafford loan.
Direct Stafford Loan Limits:
The chart below provides information about the maximum loan amounts for which you may be eligible per academic year. Students will automatically be offered the maximum allowable loan limit per year. It is the student's responsibility to accept the loan type and amount that best meets their financial requirements. If loan changes are necessary please see the Loan Changes section below the chart for further details. Please note loan eligibility may decrease if a student receives other financial aid that is used to cover a portion of educational costs. Federal regulations will not allow total aid to exceed the cost of attendance. Graduate students; please be aware that a graduate assistantship tuition waiver may reduce loan eligibility.
Annual Federal Direct Stafford Loan Limits
|
*Base Loan Eligibility
|
Additional Unsubsidized Loan Amount
|
| Undergraduate Level - Dependent Students |
| Students with 0-29 earned credits (Freshman) |
$3,500
|
$2,000
|
| Students with 30-59 earned credits (Sophomore) |
$4,500
|
$2,000
|
| Students with 60-89 earned credits (Junior) |
$5,500
|
$2,000
|
| Students with 90+ earned credits (Senior) |
$5,500
|
$2,000
|
Teacher Certification or Second Bachelor's Degree
|
$5,500
|
$2,000
|
| Undergraduate Level - Independent Students and Dependent Students whose Parents were Denied PLUS |
| Students with 0-29 earned credits (Freshman) |
$3,500
|
$6,000
|
| Students with 30-59 earned credits (Sophomore) |
$4,500
|
$6,000
|
| Students with 60-89 earned credits (Junior) |
$5,500
|
$7,000
|
| Students with 90+ earned credits (Senior) |
$5,500
|
$7,000
|
Teacher Certification or Second Bachelor's Degree
|
$5,500
|
$7,000
|
| Graduate or Professional Student |
$20,500 (ALL unsubsidized)
|
| Total Borrowing Allowed (sum of all years) |
| Dependent Undergraduate |
$31,000 ($23,000 max subsidized) |
|
| Independent Undergraduate or Dependent Undergraduate with PLUS Denial |
$57,500 ($23,000 max subsidized) |
|
| Graduate/Professional |
$138,500 ($65,000 max subsidized) |
(includes borrowing on an undergraduate level) |
| * Base Loan Eligibility may be either subsidized or unsubsidized as determined by student's need on the FAFSA |
Undergraduate and Graduate students MUST be enrolled in at least 6 semester credits at the end of drop/add period to receive Federal Direct Stafford Loan. 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.
Loan Changes: Beginning with the 2012-2013 academic year students requesting a change to their Federal Direct Stafford Loan must submit a completed Pre-disbursement Loan Change Form to the Financial Aid Office.
Direct 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/.