Federal Direct Subsidized Stafford Loans
The Federal Direct Subsidized Stafford Loan is awarded to meet financial need after other resources are subtracted. Maximum annual loan limits apply and may limit the amount that a student may borrow. The interest rate for Federal Subsidized Stafford Loans is currently 3.4 percent and beginning Fall 2012 subsidized loans are only available to undergraduate students. A 1% origination fee will be deducted before the loan proceeds are sent to the school. Repayment of the loan begins six months after the student is no longer enrolled at least half time (six credits) and the federal government pays interest on the loan for you during eligible periods of enrollment.Apply for a Federal Direct Subsidized Stafford Loan
The Stafford loan process is a two-step process:Step 1- Complete a Federal Direct Stafford Loan Master Promissory Note
Step 2- Complete the Stafford Loan Entrance Counseling
In order to be eligible to apply for a Federal Direct Subsidized Stafford Loan, you must complete the FAFSA and be enrolled for at least six credits by the add/drop deadline each semester. If you are eligible for a Federal Direct Subsidized Stafford Loan, it will be included in your financial aid award package.
In order to receive a Federal Direct Subsidized Stafford Loan, you must complete a Master Promissory Note (MPN) before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN during your college career.