Federal Direct Stafford Loan Program
- Fixed interest rate of 2.75% for undergraduate students.
- Undergraduate students enrolled for at least 6 credit hours.
- Need based; must apply for Pell Grant (FAFSA).
- Dependent undergraduates: up to $5,500 in the first year, $6,500 in the second year, and $7,500 in the third and fourth years, up to a maximum total of $31,000. Independent undergraduates: up to $7,500 in the first and second years and $12,500 in the third and fourth years, up to a maximum total of $57,500. Students must complete the FAFSA.
Federal Direct Unsubsidized Stafford Loan Program
The annual as well as the aggregate loan limits are the very same as the Subsidized Stafford Loan (less amounts borrowed under that program) for dependent students. However, the independent student can borrow additional funds through the Federal Unsubsidized Stafford Loan Program. Loan limits may vary according to the student’s year in college. The interest rate is 2.75% for all undergraduate students, and the borrower is responsible for accrued interest. Interest may be capitalized at the borrower’s request. Graduate students can borrow up to a maximum of $20,500 per year. The interest rate for graduate students is 4.3%. Students must complete the FAFSA.
Federal Direct Parent Loan Program (Plus)
- Fixed interest rate of 5.30%.
- Repayment starts within 60 days after loan is fully disbursed.
On all the Federal Direct Loan Programs mentioned above, there is an origination fee. These fees will reduce the net amount of the loan proceeds. To qualify, students must complete the Free Application for Federal Student Aid (FAFSA).