Federal Direct Stafford Loan
The Federal Direct Stafford Loan enables students who are enrolled at least half-time and degree seeking to borrow low interest loans.
Payment on these loans begins 6 months after graduation or after a student is no longer enrolled at least half-time.
Students must file the Free Application for Federal Student Aid (FAFSA) each academic year to be eligible to apply for the Direct Stafford Loan.
PRIORITY DEADLINE is July 15 for Fall, November 15 for Spring and April 15 for Summer.
How To Apply
- First-time Stafford Loan Borrower at Union
Sign on to www.studentloans.gov using your FSA user ID and password obtained from the US Dept. of Education- Complete "Entrance Counseling"
Select Counseling Type: Undergraduate - Complete "Master Promissory Note"
Select Loan Type: Subsidized/Unsubsidized
- Complete "Entrance Counseling"
- Returning Stafford Loan Borrower at Union
- Complete the FAFSA
Types of Stafford Loans (The type is determined by the FAFSA results)
- Subsidized (Need Based) - The Federal government pays the interest while the student is enrolled at least half-time.
- Unsubsidized (non-need based) - The student is responsible for interest which may be paid while enrolled or capitalized (added to the Principal of the loan).
Stafford Undergraduate Annual Loan Limits
Maximum Direct Stafford Loan amounts for Non-Traditional Programs will vary. The Office of Student Financial Planning will award the maximum amount you are eligible to receive for your Program of Study.
| Dependent Students: | Independent Students: |
|---|---|
| Freshman $5,500* | Freshman $9,500* |
| Sophomore $6,500* | Sophomore $10,500* |
| Junior and Senior $7,500 | Junior and Senior $12,500 |
2015-16 interest rates on Direct Stafford loans (subsidized and unsubsidized) are 4.29%. An origination fee of 1.073% will be deducted by the Department of Education from the Stafford Loans disbursed prior to October 1, 2015. An origination fee of 1.068% will be deducted by the Department of Education from the Stafford Loans disbursed on October 1, 2015 and before October 1, 2016. 2016-17 rates will be set by federal government in June 2016.
A Federal Direct Stafford Loan Master Promissory Note (MPN) and entrance counseling must be completed the first time you apply for a loan at Union. The MPN is valid for up to 10 years. You are able to E-Sign the MPN at www.studentloans.gov and complete entrance counseling at www.studentloans.gov.
Loan funds are normally disbursed in equal installments. If the student has met all federal requirements, loan funds are credited to their account within 3 days after the funds are received. If a student is due a credit refund, it will be direct deposited to the bank account the student set up via Web Advisor. See our Schedule of Loan Refund Dates.