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Federal Direct Stafford Loan


Federal Direct Stafford Loans are low-interest loans for undergraduate and graduate students who complete a FAFSA.


Eligibility


The student:

  1. Must be fully admitted as a degree-seeking student in an undergraduate or graduate program at ISU.
  2. Must be enrolled at least half-time when the loan is expected to be disbursed.
  3. Must maintain SAP standards.
  4. Must be a U.S. Citizen or eligible non-citizen.
  5. Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt.

How To Apply

  1. File the Free Application for Federal Student Aid (FAFSA).
     
  2. Complete the Undergraduate Stafford Loan Request Form or the Graduate Loan Request Form.
     
  3. First-time borrowers must complete the Master Promissory Note and Entrance Counseling.

Amounts


Subsidized Stafford Loans:

  • Collect interest at 0% while the borrower is enrolled at least half-time;
  • Collect interest at 3.4% fixed APR when the borrower graduates or drops below half-time enrollment;
  • Require a 1% origination fee assessed at disbursement;
  • Require unmet need as defined by the FAFSA;
  • Are only available for undergraduate students.

Unsubsidized Stafford Loans:

  • Collect interest at 6.8% fixed APR;
  • Require a 1% origination fee assessed at disbursement;
  • Are available for undergraduate and graduate students.

Because the Federal Direct Stafford Loan program does not require a credit check, it requires both annual and cumulative (lifetime) limits as listed below:


Loan Limits for Dependent Students
Grade Level Base Subsidized Amount Additional Unsubsidized
Amount		 Annual Maximum Aggregate Loan Limits
Freshman (0-31 hrs) $3,500 $2,000 $5,500 $31,000

(maximum $23,000 in Subsidized)
Sophomore (32-62 hrs) $4,500 $2,000 $6,500
Junior (63-93 hrs)
Senior (94-124+ hrs)		 $5,500 $2,000 $7,500

Loan Limits for Independent Students (or Dependent Students Whose Parents Were Denied Federal Direct Parent PLUS Loans)
Grade Level Base Subsidized Amount Additional Unsubsidized
Amount		 Annual Maximum Aggregate Loan Limits
Freshman (0-31 hrs) $3,500 $6,000 $9,500 $57,500

(maximum $23,000 in Subsidized)
Sophomore (32-62 hrs) $4,500 $6,000 $10,500
Junior (63-93 hrs)
Senior (94-124+ hrs)		 $5,500 $7,000 $12,500
Graduates N/A $20,500 $20,500 $138,500

(maximum $65,500 in Subsidized

Disbursement of Funds

  • Loan funds are applied to student accounts approximately ten days before the start of the semester.
  • If the borrower applies for a full academic year loan, half of the amount applied for is disbursed at the start of the fall semester and the other half at the start of the spring semester.
  • Funds will first cover any charges on the student's account.
  • Any excess funds are refunded to the student via ACH direct deposit or sent to student's permanent address.

Repayment

To find out more about repayment options before receiving a Direct Loan, borrowers may contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

In addition, visit repayment.

Contact

Student Financial Aid
220 North 7th Street
150 Tirey Hall
Indiana State University
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