Subsidized

Federal Direct Stafford Subsidized Loans

Federal Direct Stafford Subsidized Loans may be offered to students who demonstrate financial need. When determining the amount of a Subsidized loan, the cost of attendance, expected family contribution and estimated financial aid must be taken into account.

Additional unsubsidized Stafford loan limits applicable to undergraduate students are increased for loans first disbursed on or after July 1, 2008. Subsidized limits are unchanged.

Federal Direct Stafford Loans
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

Interest Payment: The federal government does not charge interest while you are enrolled in school at least half-time, during the six-month grace period, or during deferments.

Interest Rates: The interest on the Direct Stafford subsidized loans is fixed at 6.0% for undergraduate borrowers and 6.80% for graduate student borrowers.

Loan Fee: Effective July 1, 2008, a loan origination fee of 0.5% (2% origination fee minus 1.5% rebate) will be subtracted from the gross amount of the loan by the Federal government. The fee is subtracted from the loan before it is disbursed.

Repayment: After you graduate, leave school or drop below half-time enrollment, you have a 6 month grace period before you begin repayment. You may prepay all or part of a loan at any time without penalty. If you have more than one Federal student loan, be sure to specify which loan you are prepaying.

Aggregate Loan Limits - Federal Direct Stafford Loans
	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