Federal Stafford Loan and Federal Parent Plus Loan

Maximum Loan Amounts

Dependent Student - A first year Dependent student (parent information is required on the FAFSA), with less than 30 earned or transfer credits, may borrow up to $5,500 per year with a maximum of $3,500 of that amount being in a subsidized loan. Second year dependent students, with at least 30 earned or transfer credits, may borrow up to a maximum of $6,500 per year with a maximum of $4,500 of that amount in a subsidized loan. A dependent undergraduate student may only borrow up to an aggregate limit of $31,000.

Independent Student - Independent students (parent information is not required on the FAFSA) may have up to an additional $4,000 in unsubsidized loans per year. A first year independent student, with less than 30 earned or transfer credits, may be eligible to borrow up to $9,500 per year with a maximum of $3,500 of that amount being in a subsidized loan. Second year independent students, with at least 30 earned or transfer credits, may be eligible to borrow up to $10,500 per year with a maximum of $4,500 in a subsidized loan. An independent undergraduate student may only borrow up to an aggregate limit of $57,500.

Repayment Terms

The fixed interest rate for subsidized Federal Direct Loans is 4.5% and unsubsidized Federal Direct Loans is 6.8%. In addition, all Federal Direct Loans are charges an origination fee of 1%.

There are several ways to repay a Federal Direct Loan:

A standard repayment plan has a fixed monthly repayment amount for a fixed period of time, usually 10 years.

An extended repayment plan has a lower fixed monthly payment amount, and loan repayment can be extended beyond the usual 10 years.

A graduated repayment plan usually begins with lower monthly payments, and payment amounts increase at specified times. Payments may be the usual 10 year period, or they may be extended beyond the usual 10 years.

A servicing agency will be responsible for maintaining the loan account and repayments. It is the student's responsibility to maintain contact with that agency.

Loan Consolidation:

Students who have previously borrowed FFELP student loans through a lending institution and who are now borrowing a Federal Direct Loan are encouraged to consolidate all of their student loans into one Federal Direct Consolidation Loan. This will help the borrower avoid the situation of owing two separate loans to two different lenders.  Borrowers who are interested in consolidation of all their student loans into one Consolidation Loan can contact the U.S. Department of Education for more information at http://loanconsolidation.ed.gov.

How to apply for a Stafford Loan or Parent Plus Loan

Before a student can apply for a Stafford Loan or receive funds from the Stafford Loan a Entrance Counseling session must be completed.  This quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you to understand your loan responsibilities. Students can complete this step by selecting the link below.

Entrance Counseling

All students or parents wishing to apply for a Stafford Loan or Parent Plus Loan must complete a Master Promissory Note (MPN).  This can be done by clicling on the link below