Most universities and colleges will offer a Federal Direct Stafford Student Loan (Federal Direct Subsidized and Unsubsidized Student Loans) as a participant in the William D. Ford Federal Direct Student Loan Program. When you borrow a Federal Direct Student Loan, you are borrowing from the federal government by receiving funds directly through your college or university. There are colleges and universities that will not participate in the Federal Family Education Student Loan program (FFEL).

Under the Federal Direct Student Loan Program, you will have many different options for repayment; therefore, you can select the repayment plan that is best for your particular financial circumstances. For more information regarding repayment options, you can talk to the financial aid office at your school.

Federal Direct Subsidized Student Loan

The Federal Direct Subsidized Student Loan is a need based federal student loan awarded only to college students who demonstrate a financial aid need. Undergraduate, graduate, and professional college students who have unmet financial need will be considered for this student loan up to the amount of the college students’ borrowing limit. All borrowers must be U.S. citizens or eligible non-citizens enrolled at least half time and maintaining a Satisfactory Academic Progress for Financial Aid Assistance Eligibility. In addition, borrowers must meet all other requirements listed on the Student Rights and Responsibilities pamphlet your school will provide to you.

Federal Direct Unsubsidized Student Loan

The Federal Direct Unsubsidized Student Loan is a non-need based federal student loan that cannot exceed the educational cost of attendance minus other financial aid assistance. Undergraduate, graduate, and professional students who are not eligible for any Subsidized Student Loan or are eligible for only a portion of the annual student loan limit for the Subsidized Loan may apply for the unsubsidized student loan as well. Undergraduate annual Unsubsidized Stafford student loan limits are increased for student loans initially disbursed on or after July 1, 2008. Borrowers must be U.S. citizens or eligible non-citizens enrolled at least half time and maintaining Satisfactory Academic Progress for Financial Aid Assistance Eligibility. In addition, borrowers must meet all other requirements listed in the Student Rights and Responsibilities pamphlet your financial aid assistant will give you.

Additional Unsubsidized Student Loan for Health Profession Students

Additional unsubsidized amounts are available for college students enrolled in the health professions colleges. This would include the Colleges of Medicine, Dentistry, Optometry, Pharmacy and Veterinary Medicine. College students in these professional programs may receive up to a maximum of $20,000, as long as it does not exceed the cost of attendance.

The aggregate subsidized and unsubsidized student loan amount is $224,000.

The Application Process

File the FAFSA or Renewal FAFSA to be considered for a Federal Subsidized Direct Student Loan or Unsubsidized Direct Student Loan.

Basic Borrowing Limits

Borrowing limits will depend on class rank and academic level, and vary for undergraduates and graduate as well as professional college students. Special rules will apply to college students taking coursework through the Office of Continuing Education (CEd) and graduate nondegree coursework.

The Office of Student Financial Aid Assistance uses the National College Student Loan Database Service (NSLDS). Consequently, your student loan award will reflect any loans borrowed at any college or university previously attended. Refer to your Student Aid Report (SAR) for your student loan aggregates.