| |
|
|
|
Federal Stafford loans (Subsidized and unsubsidized)
- 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
mailed with your award letter.
 Federal
Stafford loans: subsidized or unsubsidized
Subsidized
If you are eligible for a 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 federal unsubsidized Stafford loan has all the same terms as the
federal subsidized Stafford loan; however, you are responsible for the
interest at all times. The federal government DOES NOT pay any interest
for you.
Loan
limits
The following chart shows how much you can borrow per year.
| Academic Grade Level: |
Dependent |
Independent |
| Freshman |
$3,500 |
$7,500 |
| Sophomore |
$4,500 |
$8,500 |
| Junior |
$5,500 |
$10,500 |
| Senior |
$5,500 |
$10,500 |
Interest Rates and Fees
Subsidized
- Any federal Subsidized Stafford loans borrowed BEFORE July 1, 2006
will have a fixed interest rate at 6.8 percent.
- Any federal Subsidized Stafford loans borrowed AFTER July 1, 2006
will have a fixed interest rate at 6.0 percent.
Unsubsidized
- Any federal Unubsidized Stafford loans borrowed AFTER July 1, 2006
will have a fixed interest rate at 6.8 percent.
We recommend that students try to pay interest on the unsubsidized
Stafford loan while attending school. It is not a requirement to pay
the interest while in school; however, it will decrease the overall
cost of the loan.
A guarantee fee and an origination fee may be withheld from your disbursement
amount. The fees you are charged will be disclosed on your Notice of
Guarantee and Disclosure Statement. |
|
