Federal Stafford loans

• You, the student, are the borrower.
   
• DWU determines your eligibility for a loan.
   
• A credit evaluation is not required.
   
• Repayment begins six months after you are less than half-time status.

Qualifying for the federal Stafford loan

• Step 1 - Complete the FAFSA (Free Application for Federal Aid).
   
• Step 2 - Sign and return your financial aid award letter. You may indicate any decreases in the amount you want to borrow on your award letter.
   
• Step 3 - Complete the Master Promissory Note.
   
• Step 4- Complete Stafford loan entrance counseling.

NOTE: Instructions for completing the Stafford loan process will be sent to you upon acceptance of these federal loans.

Federal Stafford loans: subsidized or unsubsidized

Subsidized
If you are eligible for a need-based subsidized federal Stafford loan, the federal government will pay the interest on the loan while you:

• are taking at least six credits
   
• are in your six-month grace period after you graduate or cease at least half-time attendance
   
• are in an authorized deferment

Unsubsidized
The non-need based federal unsubsidized Stafford loan has all the same terms as the federal subsidized Stafford loan; however, you are responsible for the interest during the life of the loan with interest accruing as soon as the loan is disbursed. The federal government DOES NOT pay any interest for you.

Loan limits
Annual Limits
The following chart shows the maximum amount undergraduate students may be able to borrow per year, effective July 1, 2008.

The amounts listed below are a combined total of subsidized and unsubsidized loans.

Cumulative limits
Effective July 1, 2008:

• Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
• Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)

Interest Rates

Subsidized

• Any federal Subsidized Stafford loans borrowed prior to July 1, 2006 will have a variable interest rate.
• Any federal Subsidized Stafford loans borrowed from July 1, 2006 through June 30, 2008 will have a fixed interest rate at 6.8 percent.
• Any federal Subsidized Stafford loans borrowed from July 1, 2008 through June 30, 2009 will have a fixed interest rate at 6.0 percent.
• Any federal Subsidized Stafford loans borrowed from July 1, 2009 through June 30, 2010 will have a fixed interest rate at 5.6 percent.
• Any federal Subsidized Stafford loans borrowed from July 1, 2010 through June 30, 2011 will have a fixed interest rate at 4.5 percent.

Unsubsidized

• Any federal unsubsidized Stafford loans borrowed prior to July 1, 2006 will have a variable interest rate.
• Any federal Unsubsidized Stafford loans borrowed AFTER July 1, 2006 will have a fixed interest rate at 6.8 percent.

Loan Fees
Students may be charged an origination fee and/or a federal default fee. If charged these fees, they will be deducted proportionately from each loan disbursement.