Who is eligible for Direct Stafford Loans?
- A U.S. citizen or an eligible non-citizen
- A student admitted in a degree program
- A FAFSA must be completed and processed by the FIT Financial Aid Department
What steps need to be taken to receive a Direct Stafford Loan?
- Stafford loans are awarded and must be accepted online or you may complete and submit Financial Aid Department Direct Stafford Loan Request .
- Complete a Master Promissory Note (MPN) at www.studentloans.gov.
- Complete an Entrance Counseling Session/Interview.
- Enroll in at least 6 credit hours per term in a degree program
Students who demonstrate financial need qualify for the subsidized loan, which means that the federal government pays the interest while the student is in school at least half-time (6 credits). The interest rate for a subsidized Direct Stafford Loan is at a fixed interest rate of 4.66 % for undergraduate student loans disbursed after July 1, 2014.
Students who do not demonstrate financial need may be eligible for the unsubsidized loan, which means that they will be charged interest while in school, but may defer payment until completion of school. Interest is added on to the principal (capitalized) which increases the amount of the loan that needs to be repaid. Students are advised to pay the interest on the loan while in attendance, if they are able. The interest rate for unsubsidized loans is fixed at 4.66 % for loans disbursed after July 1, 2014.
Direct Stafford Loan Eligibility Chart
|Subsidized Eligibility||Additional Unsubsidized Loan Eligibility|
|Student||Loan Limits||ALL Undergraduate Students||Dependant students whose parents were denied PLUS loans, Independent, & Graduate students||2014-2015 Fixed Interest Rate|| Interest Rate Cap
|Freshman||$ 3,500||$ 2,000||$ 4,000||4.66 %||8.25 %|
|Sophomore||$ 4,500||$ 2,000||$ 4,000||4.66 %|| 8.25 %
|Junior||$ 5,500||$ 2,000||$ 5,000||4.66 %|| 8.25 %
|Senior||$ 5,500||$ 2,000||$ 5,000||4.66 %|| 8.25 %
|Graduate Student||N/A||N/A||$ 20,500||6.21 %|| 9.50 %