Stafford Loans
Priority Deadline: July 1 (Applies to Undergraduate Students Only)
Federal Direct Stafford Loans are awarded to all students who complete a FAFSA, meet eligibility requirements, submit all required documentation, and are enrolled at least half-time. This loan is borrowed by the student and no credit check is required. Students may be offered a Subsidized and/or Unsubsidized Direct Stafford Loan based on financial need, which is evaluated using the data reported on the FAFSA.
Stafford Subsidized Loan
With a subsidized loan, the federal government pays the interest on the loan while the student is in school at least half-time and during authorized periods of deferment.
Stafford Unsubsidized Loan
For unsubsidized loans, students are charged interest from the time the loan is disbursed until it is paid in full. Borrowers may choose to pay the interest while they are in school, or defer payments until the end of their grace period. Any accrued interest will be capitalized and added to the principal amount of the loan at repayment, increasing the amount that must be repaid. If students choose to pay the interest as it accumulates, the long term cost of the loan will be less.
Repayment
Repayment on Federal Direct Student Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status.
The fixed interest rates for Stafford Loans first disbursed on or after July 1, 2012, through June 30, 2013, are as follows:
| Loan | Borrowers | Interest Rate |
|---|---|---|
| Subsidized | Undergraduate and ADEP | 3.4% |
| Unsubsidized | All Students | 6.8% |
View Repayment Estimator (PDF)
Origination Fee
Subsidized and unsubsidized Federal Direct Loans are subject to a 1% federal origination fee* which is subtracted from the loan at the time of disbursement.
*Please Note: The following describes the impact of Sequestration on the Title IV Student Financial Assistance Programs. For Direct Stafford student borrowers where the first disbursement of the loan is after July 1, 2013, the current loan fee of 1 percent will increase to 1.051 percent.
Loan Limits
The maximum loan amount for which a student may receive in the Federal Direct Student Loan Program (subsidized and/or unsubsidized) is determined by the student’s grade level.
Grade level is determined based on the number of credits a student has completed. (The following annual maximums apply to undergraduate students.)
| Class | Credit Requirements | Annual Maximum |
|---|---|---|
| Freshman | 0–29 credits | $5,500 ($3,500 subsidized) |
| Sophomore | 30–59 credits | $6,500 ($4,500 subsidized) |
| Junior | 60–89 credits | $7,500 ($5,500 subsidized) |
| Senior | 90+ credits | $7,500 ($5,500 subsidized) |
Students enrolling mid-year in an academic program, may be eligible to receive the full amount of Stafford loan funds up to the annual loan limits as specified by the federal government. Please Note: this may result in receipt of loan funds at a higher amount in a single term due to a mid-year start date. If you later intend to enroll for all terms in an academic year, your loan funds will be equally distributed over the terms you are enrolled in. If you have questions about how this will impact any future awards, please contact the Office of Financial Aid.
Additional Federal Direct Unsubsidized Loan
The additional unsubsidized loan is available to students who are either classified as “independent” according to federal guidelines, or whose parents are denied the PLUS Loan by the Department of Education during the application process. Additional unsubsidized loan amounts are as follows:
| Class | Credit Requirements | Amount |
|---|---|---|
| Freshman | 0–29 credits | $4,000 |
| Sophomore | 30–59 credits | $4,000 |
| Junior | 60–89 credits | $5,000 |
| Senior | 90+ credits | $5,000 |
Lifetime Limits
The following aggregate maximums apply to undergraduate students.
| Situation | Maximum |
|---|---|
| Without Additional Direct Unsubsidized | $31,000 ($23,000 subsidized) |
| With Additional Direct Unsubsidized | $57,500 ($23,000 subsidized) |
CLU reviews aggregate loan limits prior to awarding loans for the academic year. Students can check the amount of loans they have taken out during their academic careers through the National Student Loan Data System (NSLDS).
Federal Direct Stafford Unsubsidized Loans are fixed-rate student loans for Graduate students. These loans are "unsubsidized" because the interest accrues while the student is in school. Students can choose to pay the interest while in school, or add it to the balance of the loan when they enter repayment.
In order to be eligible for Federal Stafford Loans, a graduate student must:
- File a Free Application for Federal Student Aid (FAFSA)
- Be enrolled at least half time (at least 3 credits per semester) in a master's or doctoral program
- Be a U.S. Citizen or eligible non-citizen
- Be achieving Satisfactory Academic Progress as established by the University
- Cannot be in default on a student loan or owe a repayment on any grant funds
- Submit all documents required by the Financial Aid Office pertaining to Verification
Students pursuing only a Teaching Credential are considered fifth-year undergraduate students and follow the loan limits and credit requirements for third-year and beyond undergraduates. For more information, please visit Undergraduate Loans.
Repayment
Repayment on Federal Direct Student Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status. Interest rates on Federal Direct Loans are fixed. Federal Direct Stafford Loans are subject to a 1% federal origination fee* which is subtracted from the loan at the time of disbursement.
*Please Note: The following describes the impact of Sequestration on the Title IV Student Financial Assistance Programs. For Direct Stafford student borrowers where the first disbursement of the loan is after July 1, 2013, the current loan fee of 1 percent will increase to 1.051 percent.
Annual Loan Limits
Graduate and doctoral students are eligible to take out up to $20,500 per year in Federal Stafford Loans.
Students enrolling mid-year in an academic program, may be eligible to receive the full amount of Stafford loan funds up to the annual loan limits as specified by the federal government. Please Note: this may result in receipt of loan funds at a higher amount in a single term due to a mid-year start date. If you later intend to enroll for all terms in an academic year, your loan funds will be equally distributed over the terms you are enrolled in. If you have questions about how this will impact any future awards, please contact the Office of Financial Aid.
Aggregate Loan Limits
Students who borrow Federal Stafford Loans have aggregate lifetime loan limits. This means that there is a maximum a student may take out in Federal Stafford Loans for his or her educational career. For Graduate and Doctoral students, the lifetime loan limit is $138,500. Of this amount, up to $65,000 may be subsidized. Students can check the amount of loans they have taken out during their academic careers through the National Student Loan Data System (NSLDS).
There are important updates to the Direct Loan Program effective July 1, 2012. Read More »
