Federal Direct Loans
The Federal Direct Loans are designed to assist a student in paying for educational expenses through a low interest loan program.
- Current interest rate on these loans is 2.75% for loans first disbursed on or after July 1, 2020 and July 1, 2021.
- You have between 10 and 25 years to repay the loan, depending on the amount owed and the type of repayment plan.
- You will have a six-month grace period before you are required to begin repayment.
- You must have financial need to receive a Subsidized Federal Stafford Direct Loan. The U.S. Department of Education will pay (subsidize) the interest that accrues on a subsidized loan during at least half time attendance and certain other periods.
- You do not need to have financial need to obtain an Unsubsidized Federal Stafford Direct Loan. Also, the interest is not paid for you, however you may request to have the interest capitalize.
Federal Direct Loans are limited to $5,500. Independent students may qualify for more. Also, any student in an eligible associate degree or certificate program who has completed at least 30 credit hours may apply for a grade level 2 loan (an additional $1000). Loans will be awarded based on remaining financial need and all other eligibility requirements. It is important to only borrow what is needed for your educational costs. Remember, these loans must be repaid and any additional loans will increase your monthly payment.
Students requesting additional loan funds must complete, in its entirety, the Additional Loan Request form found on our Financial Aid Forms web page. All loans must be accepted on the student Financial Aid Self-Service portal.
A "dependent" student is eligible to request a maximum of $5,500 per year for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $6,500 for the second year (of which no more than $4,500 can be subsidized).
An "independent" student is eligible to request a maximum of $9,500 for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $10,500 for the second year (of which no more than $4,500 can be subsidized).
How to Apply
Students should complete the steps below to apply for either the Subsidized or Unsubsidized Federal Stafford Loan.