Federal Direct Stafford Loans
Direct Stafford Loans are low interest loans for students that are borrowed directly through the U.S. Department of Education.
Applying for a Direct Stafford Loan
To apply for a Direct Stafford Loan, a student must complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. NIU automatically offers loan eligibility with the initial award notification. A request to have a student's loan eligibility reviewed can be made by contacting the Student Financial Aid Office. See the chart below for information on loan limits.
There are two types of Stafford Loans:
Subsidized Loans
- Subsidized loans are awarded based on financial need as determined by the FAFSA. The U.S Department of Education will pay the interest on the loan while you are attending school at least half-time, for the first six months after you leave school (grace period), and during periods of deferment (postponement of loan payments). For periods of enrollment beginning on or after July 1, 2012, (Fall 2012 and beyond), Graduate and Professional students are no longer eligible to receive Direct Subsidized loans.
Unsubsidized Loans
- Unsubsidized loans are awarded to any student eligible for financial aid regardless of Expected Family Contributions (EFC). Unsubsidized loans are not awarded based on financial need. The U.S. Department of Education does not pay the interest on the loan while you are attending school - the student is responsible for paying the interest that can accrue on the loan from the time the loan is disbursed until it is paid in full.
| Maximum Stafford Loan Limits | ||||
|---|---|---|---|---|
| Academic Level | Base Stafford Loan Amount Subsidized & Unsubsidized | Additional Unsubsidized Stafford Loan for Undergraduate Students | Additional Unsubsidized Stafford Loan for Independent Undergraduates & Dependent Students with PLUS Denial | Federal Stafford Loan Lifetime Aggregate Maximum |
| Freshman (0-23 cumulative hours) |
$3,500 | $2,000 | $4,000 | Dependent Undergraduate: $31,000 – No more than $23,000 of this amount may be in Subsidized Loans. Independent Undergraduate & Dependent Student with PLUS Denial: $57,500 – No more than $23,000 of this amount may be in Subsidized Loans. Independent Undergraduate & Dependent Student with PLUS Denial: $57,500 – No more than $23,000 of this amount may be in Subsidized Loans. |
| Sophomore (24-47 cumulative hours) | $4,500 | $2,000 | $4,000 | |
| Junior/Senior & Post-Baccalaureate (48+ cumulative hours) | $5,500 | $2,000 | $5,000 | |
| All Eligible Student-at-Large & Post Baccalaureate pursuing a teachers certification | $5,500 | $2,000 | $5,000 | |
| Graduate & Professional Prior to June 30, 2012 |
$8,500 | $0 | $12,000 | $138,500 – No more than $65,500 of this amount may be in Subsidized Loans. The graduate debt limit includes Stafford Loans received for Undergraduate study. |
| Graduate & Professional with Loan Periods beginning after July 1, 2012 | $0 | $0 | $20,500 | $138,500 - No more than $65,500 of this amount may be in Subsidized Loans. The Graduate debt limit includes Stafford Loans received for Undergraduate study. |
| NOTE: The amounts shown in the charts above are the maximum amounts that you may borrow for an academic year effective July 1, 2012. You might receive less than the maximum if you receive other financial aid that is used to cover a portion of your cost of attendance. The maximum amount that you may borrow will also be less in certain situations, such as if you are an undergraduate student enrolled in a program of study that is shorter than an academic year. Your school can refuse to certify your loan or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its action and explains the reason to you in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education. | ||||
Undergraduates Graduating After the Fall Semester
If an undergraduate student will graduate after the fall semester ends, loans are required to be prorated based on the number of credit hours in which the student is enrolled.
| Fall Only Prorated Loans | |||
|---|---|---|---|
| Credit Hours/Semester | Subsidized* | Dependent Unsubsidized |
Independent Unsubsidized or Plus Denial |
| 21 | $4,812 | $1,751 | $6,126 |
| 20 | $4,583 | $1,667 | $5,834 |
| 19 | $4,354 | $1,584 | $5,542 |
| 18 | $4,125 | $1,500 | $5,250 |
| 17 | $3,896 | $1,417 | $4,958 |
| 16 | $3,667 | $1,333 | $4,666 |
| 15 | $3,437 | $1,251 | $4,376 |
| 14 | $3,208 | $1,167 | $4,084 |
| 13 | $2,979 | $1,084 | $3,792 |
| 12 | $2,750 | $1,000 | $3,500 |
| 11 | $2,521 | $917 | $3,208 |
| 10 | $2,292 | $833 | $2,916 |
| 9 | $2,062 | $751 | $2,626 |
| 8 | $1,833 | $667 | $2,334 |
| 7 | $1,604 | $584 | $2,042 |
| 6 | $1,375 | $500 | $1,750 |
|
* Subsidized loan amounts are subject to need analysis **Loans for 5 hours or less will NOT disburse because they are not half time ***Any loans awarded are subject to lifetime aggregate limit review |
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Interest Rates
| Undergraduate Students | Subsidized Loan | Unsubsidized Loan |
| Federal Direct Loans disbursed from July 1, 2009 until June 30, 2010 |
Fixed Interest Rate of 5.6% | Fixed Interest Rate of 6.8% |
| Federal Direct Loans disbursed from July 1, 2010 until June 30, 2011 |
Fixed Interest Rate of 4.5% | Fixed Interest Rate of 6.8% |
| Federal Direct Loans disbursed from July 1, 2011 until June 30, 2012 |
Fixed Interest Rate of 3.4% | Fixed Interest Rate of 6.8% |
| Federal Direct Loans disbursed after July 1, 2012 | Fixed Interest Rate of 3.4% | Fixed Interest Rate of 6.8% |
| Graduate Students | Subsidized Loan | Unsubsidized Loan |
| Federal Direct Loans disbursed after July 1, 2006 |
Fixed Interest Rate of 6.8% | Fixed Interest Rate of 6.8% |
| Federal Direct Loans with loan periods beginning after July 1, 2012 | N/A | Fixed Interest Rate of 6.8% |
The federal government pays interest on the subsidized loan until you begin repayment.
All Direct Subsidized and Direct Unsubsidized Loans first disbursed before July 1, 2006 have a variable interest rate. The interest rate on these variable rate loans is changed on July 1st of each year.
Consolidation loans disbursed under the Direct Loan Program can have either a fixed or variable interest rate depending on when the application was received.
For more detailed charts of historical interest rates, click here.
Repayment of Direct Stafford Loans
You will need to start making payments on your student loans after you are no longer enrolled at least half-time with the university and after your grace period has ended. The Direct Loan Program offers borrowers several repayment plans to help you pay on time. Repayment of Direct Stafford Loans