Federal Direct Stafford Loans Graduates

The Direct Stafford Loan allows students to borrow in their own name and requires no credit evaluation. A Free Application for Federal Student Aid (FAFSA) is required for all loan applicants. Beginning July 1, 2012, Graduate Federal Direct Stafford Loans will be entirely Unsubsidized. 

Federal Direct Unsubsidized Stafford Loan:  Beginning July 1, 2012, Graduate Loans will be entirely Unsubsidized.  The student (borrower) is charged interest. Interest accrual begins immediately during in-school, six month grace period and deferment. Interest accruing during these periods may be paid or capitalized. Repayment begins upon termination of college enrollment on at least a half-time basis.  

Deadline:
Federal Direct Stafford Loan applications must be certified by the Financial Aid Office by the last day of the semester.

Loan Limits per Academic Year:
Please refer to the following chart for the maximum amount students may borrow in the Federal Direct Stafford Loan per academic year. Please note, for periods of study shorter than an academic year, the amounts students can borrow may be less than those listed. In addition, loan amounts may be less if students receive other financial aid that is used to cover a portion of their cost of education. Students will be automatically certified for the maximum amount allowed based upon grade level, cost of education, and other financial aid received.

Maximum Academic Year Loan Limits
for Federal Direct Stafford Loans

Undergraduate Level - Dependent Students (Except Students Whose Parents Were Denied PLUS)

 

*Base
Amount

 

Unsubsidized Loan Amount

1st Year (Freshman - 0 to 29 credits)

$3,500

$2,000

2nd Year (Sophomore - 30 to 59 credits)

$4,500

$2,000

3rd Year (Junior - 60 to 89 credits)

$5,500

$2,000

4th Year (Senior - 90+ credits)

$5,500

$2,000

5th Year (Teacher Certification & Preparatory Coursework for Graduate or Professional Admission)

$5,500

$0

Undergraduate Level - Independent Students and Dependent Students Whose Parents Were Denied PLUS

 

*Base
Amount

 

Additional Unsubsidized Loan Amount

1st Year (Freshman - 0 to 29 credits)

$3,500

$6,000

2nd Year (Sophomore - 30 to 59 credits)

$4,500

$6,000

3rd Year (Junior - 60 to 89 credits)

$5,500

$7,000

4th Year (Senior - 90+ credits)

$5,500

$7,000

5th Year (Teacher Certification & Preparatory Coursework for Graduate or Professional Admission)

$5,500

$7,000

Graduate Level

Each Year

$20,500 - Beginning July 1, 2012 Graduate Loans will be entirely Unsubsidized.    

Aggregate Loan Limits:
Please refer to the following chart for the maximum amount students may borrow in the Federal Stafford Loan for their entire academic career.

Aggregate Loan Limits for Federal Direct Stafford Loans
(Effective July 1, 2008)

Dependent
Undergraduate
Student

Independent
Undergraduate Student
or
Dependent Undergraduate
Student with PLUS Denial

Graduate Student

$31,000 -No more than $23,000 of this amount may be in subsidized loans.

$57,500 - No more than $23,000 of this amount may be in subsidized loans.

$138,500 - No more than $65,500 of this amount may be in subsidized loans.  The graduate aggregate limit includes Stafford Loans received for undergraduate study.

Interest Rate:
Loans disbursed between July 1, 2013 and June 30, 2014 have a fixed interest rate of 5.41% during this period.

Fees:
Effective December 1, 2013, sequestration of federally budgeted funds occured.  The origination fee increased to approximately 1.072%.  Therefore, the net disbursement amount equals 98.928% for each disbursement of the loan.

Loan Reductions/Cancellations:
Students may request the Federal Direct Stafford Loan be reduced or canceled. The request must be in writing from the student. Through your University of Scranton email, please include your name, your Royal ID Number, and the amount you want the loan reduced to.

Repayment:
Federal Direct Stafford Loan repayment begins when student’s either graduate, withdraw, or enroll less than half-time and have used the allowable grace period usually six consecutive months. The length of repayment is between 10 and 25 years, depending on the amount borrowed and the type of repayment plan selected. Students may also pay the balance of the loan, plus any interest due, early and without a penalty. For more information, call your Direct Loan Servicer.  You may find your servicer by visiting the NSLDS Student Access website. 

Postponing Loan Repayment (Deferment and Forbearance):
Under certain circumstances, you can receive periods of deferment or forbearance that allow you to postpone loan repayment. These periods do not count towards the length of time you have to repay the loan.  For information on deferments and forbearance, call your Direct Loan Servicer.  You may find your servicer by visiting the NSLDS Student Access website.  For general information, visit StudentLoans.gov.   

Loan Discharge or Cancellation and Forgiveness:
Under certain circumstances, you can receive cancellation or sometimes "forgiveness" of a loan. For more information, call your Direct Loan Servicer.  You may find your servicer by visiting the NSLDS Student Access website.  For general information, visit the StudentLoans.gov.

Direct Loan Servicers:                                                                                                                                                                                                                                                                   You may find your actual servicer by visiting the NSLDS Student Access website.

Federal Direct Consolidation Loans:

A Consolidation Loan allows students to combine one or more of your federal education loans into a new loan that offers you several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments. Before making a decision to consolidate your federal student loans, consider factors such as the affordability of your monthly payments, the number of payments you need to make to multiple lenders, the interest rates on each of your loans, and how much you are willing to pay over the long term. For more information, call the Federal Direct Consolidation at 1-800-557-7392 or visit the Colsolidation links below.

Students enrolled before April 2009, will have borrowed loans through the Federal Family Education Loan Program (FFELP). Students enrolled after May 2009, will borrow loans through the Federal Direct Loan Program. Therefore, students must be aware of multiple lenders. It is recommended that you visit the NSLDS Student Access website. NSLDS provides a central database for student aid and allows students access to view information from schools, guaranty agencies, the Direct Loan program, as well as other programs; which is a valuable tool in managing your federal student loan information.

You will need your Federal Student Aid PIN to access the website; you have used the PIN when electronically signing your loans or when completing your FAFSA. You can request a duplicate PIN be sent to you.

Managing your debt is your responsibility, and the NSLDS website is a critical tool in assisting you. Keeping track of your financial obligations allows you to create a better financial future.

Access the links below to obtain more detailed information about your Loan Consolidation options, your eligibility to consolidate, and the benefits of consolidating. Review this information carefully before making a final decision.

Consolidation Check List

Apply:

Direct Consolidation Loans

National Student Loan Data System (NSLDS):                                                                                                                                                                                                                                   

Students and parents with federal loans will have loan information submitted to the National Student Loan Data System (NSLDS), which will be accessible to guaranty agencies, lenders, and schools. It is recommended that students and parents with federal loans visit the NSLDS Student Access website. You will need your Federal Student Aid PIN to access the website; you have used the PIN when electronically signing your loans or when completing your FAFSA. You can request a duplicate PIN be sent to you.