Federal Direct Subsidized Stafford Loan
Federal Direct Subsidized Stafford Loans are offered to students who have remaining need after other aid has been awarded. Students borrow these funds from the federal government. Subsidized Stafford loans for undergraduates only will have a fixed interest rate of 6.0% for loans with a first disbursement date on or after July 1, 2008. For more information on Federal Direct Stafford Loan interest rates, click here. There is a loan fee of 2% of the principal amount of each loan a student receives, however students will receive a repayment incentive of an up-front interest rebate equal to 1.5% of the principal amount of each loan received. A borrower retains the 1.5% repayment incentive by making the first twelve monthly payments on time. Annual and aggregate loan limits vary depending on a student's grade level and dependency status. For more information on Federal Direct Stafford Loan annual and aggregate loan limits, click here. These loans must be repaid. Payments of principal and interest begin six months after you graduate, leave school, or drop below half-time status. Federal Direct Subsidized Stafford Loan eligibility will be indicated on your Financial Aid Notification. Once you have responded to your award notification accepting the Federal Direct Stafford Loan, the information will be transmitted to the Direct Loan Origination Center. In addition, first-time Federal Direct Stafford Loan borrowers at the University will need to complete a Master Promissory Note (MPN). The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years)- thus you need sign only one MPN. The electronic version of the MPN allows you to complete, sign and obtain a copy of your MPN over the web using your U.S. Department of Education issued PIN. (While signing the MPN on-line is encouraged, a paper MPN is also available.) Continuing students who previously signed a Master Promissory Note for a Federal Direct Stafford Loan at the University will not be required to sign another promissory note. Once the Master Promissory Note is completed (for first-time borrowers) and the origination acknowledgment is received from the Direct Loan Origination Center, the funds are then disbursed to your consolidated billing account and, if eligible, a refund check is processed within ten business days. Allow four to six weeks for the initial phase of this process. If you are a first-time Federal Direct Stafford Loan borrower at the University, you may be required to complete Entrance Loan Counseling before your loan can be disbursed to your consolidated billing account. To satisfy this requirement, you must visit the Direct Loan website and complete the Entrance Counseling Tutorial and Quiz .

Federal Direct Unsubsidized Stafford Loan
This is a federal loan program with terms and conditions (e.g., loan limits, origination/insurance fees and deferments) the same as the Federal Direct Subsidized Stafford Loan, with a few exceptions. One exception is the interest rate. Unsubsidized Stafford loans for undergraduates will have a fixed interest rate of 6.8% for loans with a first disbursement date on or after July 1, 2006. For more information on Federal Direct Stafford Loan interest rates, click here. Another exception is that students are responsible for the interest during in-school and deferment periods. Interest accruing during those periods may be paid or capitalized as agreed to by the borrower and the servicer. Annual and aggregate loan limits vary depending on a student's grade level and dependency status. For more information on Federal Direct Stafford Loan annual and aggregate loan limits, click here. Federal Direct Unsubsidized Stafford Loans, combined with other aid, cannot exceed the cost of attendance at the University.

Application Process: A completed FAFSA must be on file with the OSFA before a PLUS Loan can be processed. After the PLUS Loan is accepted, a PLUS Loan Application must be completed and returned to the OSFA. This application includes information regarding how to complete the PLUS Master Promissory Note electronically. Information from the PLUS Loan Application will be transmitted to the Direct Loan Origination Center for a credit decision. Once loan approval is received from the Direct Loan Servicer and the promissory note is received by the OSFA, the first disbursement of the Federal Direct PLUS Loan will be credited to your consolidated billing account. If the disbursement is larger than the tuition/fees and other institutional charges owed, the Office of Student Accounts will generate a refund and process according to the information provided on the PLUS Loan Application. The second disbursement will be applied in the same manner at the beginning of the week before spring semester classes begin.