Federal Direct Student Stafford Loans

Federal Direct Student Stafford Loans

Federal Direct Stafford Loans are low interest loans for students, borrowed directly through the U.S. Department of Education. In the Direct Loan Program, the lender is the U.S. Department of Education, which means you have a single contact - Direct Loan Servicing Center. While student loans are an excellent option to help you meet your educational goals, loans are borrowed money that must be repaid, with interest. Interest rates vary from different loan programs and times; it is in your best interest to only borrow what you need in student loans! There are two types of Federal Stafford Loans:

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Two Types of Federal Direct Stafford Loans

Subsidized	Unsubsidized
Awarded based on financial need (as determined by the FAFSA)	Awarded to any student eligible for financial aid (through the FAFSA) - regardless of financial need
U.S. Department of Education pays the interest on the loan: While the student is enrolled at least ½ time (6 credits at Western) For the first 6 months after dropping below ½ time enrollment During periods of deferment (postponement of loan payments)	U.S. Department of Education does NOT pay interest Student is responsible for paying accrued interest from the time of disbursement until the loan is paid in full Student has the option of making interest-only payments while in school
Federal Stafford Loan Eligibility Requirements (Both Subsidized and Unsubsidized)
Accepted into a financial aid eligible program of study Enrolled at least ½ time (6 credits) Receipt of a financial aid award letter from Western indicating eligibility for a Federal Stafford loan Completed Entrance Loan Counseling Completed Stafford Master Promissory Note
Loan Eligibility Is Calculated Based on the Following Criteria
Academic level in school - 1st or 2nd Year (see loan chart below) If a student changes academic level between semesters, the student may contact the Financial Aid Office to determine additional loan eligibility, if any If a student adds credits after receiving original award package, the student may contact the Financial Aid Office to determine additional loan eligibility, if any Dependency Status - Dependent or Independent (see loan chart below);

Maximum Stafford loan Limits

Dependent Students*

1st Year Students - Student has completed < 50% of their program's required credits	2nd Year Students - Student has completed at least 50% of their program's required credits
$5,500 - no more than $4500 in Subsidized loans	$6,500 - no more than $3500 in Subsidized loans
Lifetime Aggregate Limit* $31,000 - no more than $23,000 in Subsidized loans	Lifetime Aggregate Limit* $31,000 - no more than $23,000 in Subsidized loans

Independent Students**

1st Year Students - Student has completed < 50% of their program's required credits	2nd Year Students - Student has completed at least 50% of their program's required credits
$9,500 - no more than $3500 in Subsidized loans.	$10,500 - no more than $4500 in Subsidized loans.
Lifetime Aggregate Limit*** $57,500 - no more than $23,000 in Subsidized loans	Lifetime Aggregate Limit*** $57,500 - no more than $23,000 in Subsidized loans

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Notes

*Dependent Student - Student who answered "No" to all questions under the 'Student Dependency Status' section of the FAFSA (had to use parent(s) information on the FAFSA)

**Independent Student - Student who answered "Yes" to at least one questions under the 'Student Dependency Status' section of the FAFSA (did not have to use parent(s) information on the FAFSA)

***Students may check their own lifetime aggregate loan limits on the National Student Loan Database System (NSLDS) website.