Federal Direct Stafford Loan

Federal Direct Stafford Loan

Federal Direct Stafford Loan

The Federal Direct Stafford Loan Program is a guaranteed student loan program from the government.  Students must complete the Free Application for Federal Student Aid (FAFSA), be admitted to an eligible program, attend at least half time, and maintain Satisfactory Academic Progress.  The Direct Stafford Loan Program has two types of loans - Subsidized and Unsubsidized.

Subsidized Direct Loan

The Subsidized Direct Loan is a need based loan awarded to undergraduate students.  Students are awarded this loan after being considered for grant aid first. 

Loan Terms

  • No interest accumulates on the Subsidized Loan while the student is attending at least half time. 
  • If the student drops below half time status, the grace period begins.
  • All loans have an origination fee.
  • For loans disbursed prior to July 1, 2012 or after July 1, 2014, there is no interest during the grace period.  For loans disbursed July 1, 2012 - June 30, 2014, interest begins accruing during the grace period.
  • Repayment begins after the end of the grace period.

Limitation on Subsidized Loans

For first time borrowers on or after July 1, 2013, eligibility for Direct Subsidized Loans is limited to 150% of the length of the student's current educational program.  For example, a four year bachelor's degree program has a maximum eligibility period of 6 years (students must continue to meet other eligibility requirements during that period).  Once the student has exceeded the maximum eligibility period, they will no longer be eligible for Subsidized Loans and interest will begin to accrue on outstanding Subsidized Loans.

Interest Rates for Undergraduate students

Beginning with loans disbursed on or after July 1, 2013, interest rates will be established each year based on an index rate.  The interest rate, once established on a loan, will be fixed for the life of that loan.  

The rate for loans disbursed from July 1, 2013 - June 30, 2014: 3.86%

The rate for loans disbursed from July 1, 2014 - June 30, 2015: 4.66%

Loans disbursed from July 1, 2006 to June 30, 2013 held a fixed rate deteremined by Congress for that year.  For prior interest rate information, visit studentaid.ed.gov.

Loan Fees

Loan fees are deducted from each loan disbursement.  The fee is currently 1.072% on Subsidized Direct Loans.  The fee will increases to 1.073% for loans disbursed after October 1, 2014.   This is due to federal budget cuts known as the sequester.

Important Information for Graduate Students

Beginning July 1, 2012, graduate students are not eligible for Subsidized Direct Loans.

Unsubsidized Direct Loan

The Unsubsidized Direct Loan is a non-need based loan awarded to both undergraduate and graduate students.  Students are awarded this loan after being considered for grant aid and need based loans first. 

Loan Terms

  • Interest begins accumulating on the Unsubsidized Loan when the funds are disbursed to the student.
  • All loans have an origination fee.
  • Once a student drops below half time status, the grace period begins. 
  • Repayment begins after the end of the grace period.

Interest Rates for Undergraduate students

Beginning with loans disbursed on or after July 1, 2013, interest rates will be established each year based on an index rate.  The interest rate, once established on a loan, will be fixed for the life of that loan.

The rate for loans disbursed from July 1, 2013 - June 30, 2014: 3.86%

The rate for loans disbursed from July 1, 2014 - June 30, 2015: 4.66%

Loans disbursed from July 1, 2006 to June 30, 2013 held a fixed rate deteremined by Congress.  For prior interest rate information, visit studentaid.ed.gov.

Interest Rates for Graduate Students

Beginning with loans disbursed on or after July 1, 2013, interest rates will be established each year based on an index rate.  The interest rate, once established on a loan, will be fixed for the life of that loan. Please note this rate is different than the rate for undergraduate students.

The rate for loans disbursed from July 1, 2013 - June 30, 2014: 5.41%

The rate for loans disbursed from July 1, 2014 - June 30, 2015: 6.21%

Loans disbursed from July 1, 2006 to June 30, 2013 held a fixed rate deteremined by Congress.  For prior interest rate information, visit studentaid.ed.gov.

Loan Fees

Loan fees are deducted from each loan disbursement. The fee is currently 1.072% on Subsidized Direct Loans. The fee will increases to 1.073% for loans disbursed after October 1, 2014.  This is due to federal budget cuts known as the sequester.

Entrance Loan Counseling & Master Promissory Note

All first time borrowers must complete both Entrance Counseling and the Master Promissory Note (MPN) to receive their loan.  Entrance Counseling is an online tutorial which explains important information regarding borrowing a federal student loan.  The MPN is the agreement to repay the loan.  Both of the items are completed through the Department of Education website: studentloans.gov.  You will need your PIN to log into this site.  If you have forgotten your PIN go to www.pin.ed.gov.

Maximum Loan Limits

Annual Loan Limits

Grade Level Dependent Student* Independent Student

Freshman (0-23 credits)

$5,500 (no more than $3,500 Subsidized) $9,500 (no more than $3,500 Subsidized)

Sophomore  (24-59 credits)

$6,500 (no more than $4,500 Subsidized) $10,500 (no more than $4,500 Subsidized)

Juniors & Senior (60+ credits)

$7,500 (no more than $5,500 Subsidized) $12,500 (no more than $5,500 Subsidized)
Graduate Students N/A $20,500

 

Aggregate Loan Limits

Dependent Students*  $31,000 (no more than $23,000 Subsidized)          
Independent Student    $57,500 (no more than $23,000 Subsidized)          
Graduate Students    $138,500 (no more than $65,500 Subsidized**)          

*Dependent Students whose parents cannot borrow a PLUS Loan have the same loan limits as Independent Students

**As of July 1, 2012, Graduate students are no longer eligible for Subsidized Loans.

Repayment

After the Direct Loan is disbursed to the student, the loan is assigned to one of the Federal Direct Loan Servicers.  The Loan Servicer will send periodic statements to the borrower regarding their loan status.  Once the student drops below half time status or stops attending, there is a six month grace period on the loan.  Students in this status will be required to complete Exit Loan Counseling.  Repayment begins after the grace period ends.  All repayment questions, including questions about deferment, forbearance, loan forgiveness, and consolidation should be directed to the Loan Servicer.  For students who need help contacting their Loan Servicer, visit the National Student Loan Data System (NSLDS) website.

Location

Financial Aid Office
130 Hyer Hall
University of Wisconsin-Whitewater
800 West Main Street
Whitewater, WI 53190

Contact Us

Phone: (262) 472-1130
Fax: (262) 472-5655
E-mail us!
Meet the Staff

Office Hours

Mon-Fri: 8 AM - 4 PM
Walk-ins
Mon, Tues, & Thurs: 1 PM - 4 PM
Tues, Wed, & Fri: 8 AM - 11:30 AM

54.80.121.186
http://www.uww.edu/