Federal Direct Stafford Loan
Gustavus participates in the Federal Direct Loan Program for Stafford and PLUS (Parent Loan for Undergraduate Students).
Federal Direct Stafford Loans (Subsidized and Unsubsidized) may be packaged as part of a student's aid award if the student has filed a FAFSA and a Gustavus Financial Aid Application. The 2010-2011 interest rate for the subsidized Stafford loan is 4.5%. The interest rate on the unsubsidized Stafford loan is 6.8%.
In the first year that a student borrows, a student must complete entrance counseling and a master promissory note for each of the programs. In subsequent years, the student must only file a Renewal FAFSA and the Gustavus Financial Aid Application to be considered for these types of loan assistance. There are four types of repayment plan - standard, extended, graduated, and income contingent - so you can choose the one that is best suited for your situation. Visit http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html for additional information on loan repayment and consolidation.
Important Loan Processing Tips
- Loans are disbursed half in each semester. You or your parent (for PLUS) can reduce or cancel a disbursement of a loan at any time before the loan is received by Student Accounts.
- Using the information and worksheets provided by the College, plan your annual financial needs by June and complete the loan process by August 1.
- If you have questions, contact the College to review loan options and processes early in the summer to avoid late disbursements and finance charges.
- Utilize the on-line application processes for federal Stafford, Perkins, and PLUS.
Application Process
Exit Counseling and Servicing Center
- Exit Counseling for Stafford Direct Loans
- Direct Loan Servicing Center: your account, consolidation, electronic services, & online payments
Consumer Information on Public Service Loan Forgiveness
The Department of Education posted information for consumers about the Public Service Loan Forgiveness (PSLF) Program including a fact sheet that gives general information and a list of questions and answers that address specific aspects of the program. In the Q&A, the Department states that borrowers are responsible for documenting their eligibility for PSLF. The Q&A also details which loans, payments, and employers are required to be eligible.
Ford Federal Direct Loan Annual Maximums
Dependent Students - Undergraduates
| Grade Level | Maximum Sub only | Additional Unsub | Sub/Unsub Total |
|---|---|---|---|
| 1st year | $3,500 + | $2,000 = | $5,500 |
| 2nd year | $4,500 + | $2,000 = | $6,500 |
| 3rd-5th year | $5,500 + | $2,000 = | $7,500 |
| Aggregate maximum | $23,000 | $31,000 |
The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.
Independent Students - Undergraduate
| Grade Level | Maximum Sub only | Additional Unsub | Sub/Unsub Total |
|---|---|---|---|
| 1st year | $3,500 + | $6,000 = | $9,500 |
| 2nd year | $4,500 + | $6,000 = | $10,500 |
| 3rd-5th year | $5,500 + | $7,000 = | $12,500 |
| Aggregate maximum | $23,000 | $57,500 |
The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.
Independent Students - Graduate
| Grade Level | Maximum Sub only | Additional Unsub | Sub/Unsub Total |
|---|---|---|---|
| Graduate/Professional | $8,500 + | $12,000 = | $20,500 |
| Aggregate maximum | $65,500 | $138,500 |
The subsidized portion of a graduate's loan aggregate may not exceed $65,500.