Federal Direct Stafford Loans

Stafford Loans are Federal Direct Loans for undergraduate, graduate and professional degree students.

There are two types of Stafford Loans: SUBSIDIZED and UNSUBSIDIZED. You must have financial need to receive a SUBSIDIZED Stafford Loan. Financial need is not a requirement to obtain an UNSUBSIDIZED Stafford Loan. The U.S. Department of Education will pay (SUBSIDIZE) the interest that accrues on SUBSIDIZED Stafford Loans during certain periods.

Compare this loan to other financing options.

Eligibility

1. Must be undergraduate, graduate, or professional student enrolled at least half time as a degree-seeking student. Note: Graduate and professional students are no longer eligible for the Subsidized Stafford Loan, effective July 1, 2012.
2. Must be a U.S. citizen, U.S. national, or permanent resident of the United States.
3. Cannot be in default on a Federal education loan or owe a repayment of Federal Title IV aid.

Award Amounts as of July 1, 2012

Stafford Loan limits depend on year in school and dependency status.

Interest Rates

Subsidized Stafford Loans disbursed between July 1, 2011 and July 1, 2012 have a fixed interest rate of 3.4%.

Subsidized and Unsubsidized Stafford Loans disbursed after July 1, 2012 have a fixed interest rate of 6.8%. This is effective for undergraduate (Subsidized and Unsubsidized Loans) and graduate/professional student borrowers (Unsubsidized Loans only).

Loan Fees, Effective July 1, 2012

Stafford Loans: 1% of accepted amount

For example, for every $1,000 of Stafford Loans borrowed, the origination fees will be $10.

Loan Deadline

• Fall term only (August-December) requests for Federal Stafford Loans may be processed if accepted by Thursday, December 8, 2013 at noon.

• Spring only (January-May) or academic year (August-May) requests for Federal Stafford Loans may be processed if accepted by Thursday, April 19, 2014.

• Summer loan deadlines depend upon the session(s) of enrollment. Loans must be accepted by the date indicated for the latest module you attend.

Session 1: Wednesday, June 6, 2013 at noon

Session 2: Tuesday, July 3, 2013 at noon

Session 3: Wednesday, August 1, 2013 at noon

Steps to apply for a Federal Stafford Loan

1. File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov (this is a requirement) and submit all documents requested by the Financial Aid Office; check for required documents via the online Financial Aid Self Service system at Central Pipeline for students.

2. Financial Aid Office will send the student an Award Notice that the borrower can use to determine loan period, the type of eligibility, and the amount of eligibility.

3. The borrower needs to determine how much they want to borrow and will have the option to accept the full amount offered or reduce the loan amount at Central Pipeline for students.

4. The borrower must also complete a Stafford Master Promissory Note (MPN) at studentloans.gov (if not already on file).

5. First time borrowers should complete entrance counseling.

6. Financial Aid Office certifies eligibility with the Direct loan servicer.

7. Stafford loan funds are processed electronically through the CCSU Bursar. The student will be notified by the Bursar's Office that funds have been processed. Funds are applied first to fees, then to any housing costs (if the Bursar bills for housing). Any remaining Stafford funds are sent to the student via paper check or direct deposit.

Master Promissory Note

The Stafford Loan Master Promissory Note is a multi-year or serial loan feature of the Stafford program. It allows borrowers to receive future Stafford Loan funds without completing and signing additional promissory notes as long as the borrower remains eligible and completes appropriate loan request processes. By signing only one promissory note, the delivery of Stafford Loan funds will occur even faster because it eliminates the time it takes for a promissory note to be mailed, completed, and returned to the loan service provider. Borrowers use their FAFSA PIN to sign their promissory note at studentloans.gov.

Repayment Information

Loans are in deferred status as long as the student remains enrolled at least half time in a degree seeking program.

See repayment examples here assuming a 6.8% fixed interest rate and 10 year repayment term. Borrowers can calculate payments at www.studentloans.gov.

You may go to this free, user-friendly online tool where you can combine all your student loans in one repayment calculator. You enter real numbers and get real results instantly, in plain language with easy-to-understand charts and graphics. With just a few clicks, you can see the impact of repayment options with PayBackSmarter:

• Federal student loan consolidation
• Extra principal payments
• Graduated repayment
• Income-based repayment