Federal Direct Stafford Loans are low-interest loans for students to help pay for the cost of college education. The lender is the U.S. Department Education. If you choose to use your Federal Stafford Loans, you must complete Stafford Loan Entrance Counseling and sign a Master Promissory Note (MPN).
There are two types of Federal Direct Stafford Loans
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility". You can usually find the published length of any program of study in your school's catalog. For more information log onto http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach.pdf
Subsidized Stafford loan eligibility is based on need. No interest is charged to the student while they are enrolled at least half-time and repayment is not required while the borrower is enrolled at least half-time.
Unsubsidized Stafford Loans are available to students who do not qualify for a Federal Subsidized Stafford loan or qualify for only a partial Federal Subsidized Stafford Loan. Under this program the borrower is responsible for the interest which accrues while the student is in school. The student may choose to make monthly payments while enrolled or defer all payments until six months after dropping below half-time.
To ensure that you receive your Direct Stafford Loans (complete process).
Direct Federal Stafford Loan: (Fixed-Rate)
- Subsidized 3.86%Unsubsidized 3.86%
Graduate or Professional Students:
In-school, grace, deferment, and repayment
Direct Federal PLUS:
- (Parent) Loan 6.41% (fixed rate) For parents or graduate students
Important Graduate Stafford Loan Announcement
Beginning July 1, 2012 there will no longer be an interest subsidy on Graduate Stafford Loans.
All Graduate Stafford Loans will be Unsubsidized. Eligible students can borrow a maximum of $20,500 Unsubsidized Stafford annually. Therefore, interest will begin to accrue on the entire Stafford loan while the student is enrolled.
For information on Direct Stafford Loan Limits, click here.
Federal Parent PLUS Loans
The U.S. Department of Education offers a loan program called the Federal Parent (PLUS) Loan. Parents can borrow a Parent PLUS Loan to help pay your education expenses if you are a dependent, undergraduate student. You must file a FAFSA and be enrolled at least half-time. Parents must be creditworthy to receive the loan. Since the credit check performed during the Parent PLUS loan application process is only valid for 90 days, we recommend that families do not complete a Parent PLUS loan MPN until after July 1st.
Federal Direct Parent PLUS Loan Facts:
The annual borrowing limit on a Parent PLUS Loan is equal to your estimated Cost of Attendance minus any other financial aid you receive.
Parent PLUS loans are the financial responsibility of the parents, not the student.
How to apply for a Federal Direct Parent PLUS Loan
To apply for the Parent PLUS Loan at Georgian Court, your parent must visit the Direct Loan website, studentloans.gov to complete a Parent Plus loan application (be sure to put in an actual dollar amount that you wish to borrow) and sign a Master Promissory Note (MPN).
*When a parent Plus Loan is denied contact firstname.lastname@example.org if you wish to be awarded additional unsubsidized stafford loans.
Federal Direct Grad PLUS Loan
The U.S. Department of Education offers a loan program called the Federal Direct Grad PLUS Loan. Graduate and professional degree students are eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial aid. Students must complete the FAFSA and must be enrolled at least half-time in an eligible program. Students must also be creditworthy to receive the loan.
Federal Direct Grad PLUS loan Facts:
The annual borrowing limit on a Federal Direct Grad PLUS Loan is equal to your Estimated Cost of Attendance minus any other financial aid you receive.
Applicants must complete the FAFSA and borrow their annual maximum Stafford Loan eligibility before applying for the Federal Direct Grad PLUS loan.
Private/Alternative Loans (Click Here)