Federal Direct Stafford Loan
This loan program is available to all students. Federal Direct Loans are low-interest loans from the U.S. Department of Education that are administered by Eastern Michigan University. It is the U.S. Department of Education's major form of self-help financial aid and is available through the William D. Ford Federal Direct Stafford Loan Program. There are two types of Federal Direct Loans: Subsidized and Unsubsidized.
Because the funding for the Federal Direct Loan program comes straight from the US Department of Education, you do not have to find a lender to borrow through the program.
Please disregard any offers you may receive about the Federal Stafford Loan program through private banks and other lenders. Since Eastern Michigan University is a Federal Direct Lending participating university, you may not use a private lender to apply for a Federal Stafford loan.
Applying for a Federal Direct Loan
When you complete the Free Application for Federal Student Aid or the Renewal Free Application for Federal Student Aid, you are applying for all of the aid programs for which you may be eligible, including direct loans.
If a William D. Ford Federal Direct Stafford Loan (subsidized or unsubsidized) has been offered to you as part of your aid package it will appear on your Financial Aid Award Letter. You can accept or decline these loans just as you would any other aid program assistance offered to you. Additionally, if you are accepting all or part of the loan, you are required to complete and sign a Master Promissory Note and return it to the Office of Financial Aid.
Loan Limits
Annual Loan Limits - Stafford Loan
| Dependent Students (whose parents were not denied a PLUS loan) | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|---|---|---|
| First-Year Undergraduate (Freshman) | $3,500 | $2,000 | $5,500 |
| Second-Year Undergraduate (Sophomore) | $4,500 | $2,000 | $6,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) | $5,500 | $2,000 | $7,500 |
| Independent Students (and dependent students whose parents were denied a PLUS loan) | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|---|---|---|
| First-Year Undergraduate (Freshman) | $3,500 | $6,000 | $9,500 |
| Second-Year Undergraduate (Sophomore) | $4,500 | $6,000 | $10,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) | $5,500 | $7,000 | $12,500 |
| Graduate and Professional Students | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|---|---|---|
| Graduate and Professional Students | $8,500** | $12,000 | $20,500 |
| **The Subsidized Stafford Loan program has been eliminated for graduate students beginning fall 2012. Graduate students will only be offered Unsubsidized Stafford loan funding - Annual limit = $20,500. |
Aggregate Loan Limits - Stafford Loan
| Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) | |
|---|---|---|---|
| Dependent Undergraduate Students (whose parents were not denied a PLUS loan) | $23,000 | $8,000 | $31,000 |
| Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) | $23,000 | $34,500 | $57,500 |
| Graduate and Professional Students | $65,500 (including undergraduate Stafford loans) | $73,000 | $138,500 |
Interest Rates
| Loan Type | Grade Level | 7/1/2010 to 6/30/2011 | 7/1/2011 to 6/30/2012 | 7/1/2012 to 6/30/2013 |
|---|---|---|---|---|
| Subsidized Loans | Undergraduate | 4.50 | 3.40 | 6.80 |
| Graduate | 6.80 | 6.80 | N/A | |
| Unsubsidized Loans | Undergraduate | 6.80 | 6.80 | 6.80 |
| Graduate | 6.80 | 6.80 | 6.80 |
General Requirements
Once you are awarded a Federal Direct Student Loan, you must fulfill certain conditions before loan funds can be credited to your account. These include, but may not be limited to:
Completion of a Loan Entrance Counseling
An Entrance Counseling is actually a counseling session which is designed to help you better understand your obligation as a borrower and provides other useful information on the loan process. Entrance Interviews are required for all of first time, first-year borrowers. Click here to complete Entrance Counseling.
Completion of a Master Promissory Note
Signing the Master Promissory Note The Direct Stafford Loan borrowers who wish these funds to credit to their term bill, must complete a Master Promissory Note (MPN) at using your federal Personal Identification Number (PIN). The same PIN used to complete your online FAFSA is used to sign your MPN. To obtain a PIN, visit www.pin.ed.gov .
Enrollment of at least Half Time
Please review the chart below to make sure you are meeting the enrollment criteria.
|
FULL-TIME STATUS |
¾ TIME |
½ TIME |
Undergraduate |
12 or more |
9, 10 or 11 |
6, 7 or 8 |
Graduate |
8 or more |
6 or 7 |
4 or 5 |
Loan Repayment
The Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Direct Loans are funded by the U.S. Department of Education through your school and are managed by the Direct Loan Servicing Center, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change.
Stafford loan repayment begins 6 months after you graduate, fall below half time (6 credit hours for Undergraduate and 4 hours for Graduate Students), or leave school.
If you return to school or if your enrollment increases to at least half time, there are deferment options that you could qualify for which will delay your repayment. It is important that you contactthe Direct Loan Servicing Center if your enrollment changes or if you are having problems making your payments.
To find out more about repayment options before receiving a Direct Loan, borrowers may contact their school's financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out online at the website for the Direct Loan Servicing Center or you can call the center at 1-888-447-4460.