Federal William D Ford Direct Stafford Loan
What is a Federal Direct Stafford Loan?
The Federal William D. Ford Direct Stafford Loan is a loan for enrolled students made through the U.S. Department of Education. Direct Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. If you qualify for a subsidized loan, the federal government pays interest on the loan until you begin repayment. An unsubsidized loan is not awarded on the basis of need. If you qualify for an unsubsidized loan, you will be charged interest from the time the loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate. If you allow the interest to accumulate, it will be capitalized--that is, the interest will be added to the principal amount of your loan and will increase the amount you have to repay. If you pay the interest as it accumulates, you will repay less in the long run.
How Much Can I Borrow?
If you are enrolled on at least a half-time basis and if you are a dependent undergraduate student, you can borrow up to:
$5,500 if you are a first-year student
$6,500 if you are a second year student
If you are enrolled on at least a half-time basis and if you are a Independent undergraduate student, you can borrow up to:
$9,500 if you are a first-year student
$10,500 if you are a second year student
Students in a two-year program at PCC are considered 'second year' when the student has acquired 45 credits of 100- or 200- level credits with a grade of A, B, C or Pass. Any others, such as repeated credits, incompletes and audits are not counted. A student reaching 'second year' can be considered for a higher loan funding.
Note: The amounts given above are the maximum yearly amounts you can borrow in both subsidized and unsubsidized Direct Loans. However, you cannot borrow more than your cost of attendance minus any other financial aid for which you are eligible. This means that you may receive less than the annual maximum amounts.
Academic Grade Level / Loan Type |
Maximum Loan Amount |
|
First- Year Undergraduates |
Dependent Student |
Independent student or Dependent Student parent is Ineligible for PLUS |
Base Stafford loan eligibility (Subsidized and Unsubsidized) |
$3,500 |
$3,500 |
Additional unsubsidized Stafford loan eligibility |
$2,000 |
$6,000 |
Maximum First-Year Total |
$5,500 |
$9,500 |
Second-Year Undergraduates |
||
Base Stafford loan eligibility (Subsidized and Unsubsidized) |
$4,500 |
$4,500 |
Additional unsubsidized Stafford loan eligibility |
$2,000 |
$6,000 |
Maximum Second-Year Total |
$6,500 |
$10,500 |
Second Year -PCC will consider second year after completion of 45 credits, counting only 100- and 200- level classes with A,B,C or Pass.
The total debt you can have outstanding from all Direct Loans and Federal Family Education Loans combined is:
$31,000 as a dependent undergraduate student; (no more than $23,000 of this amount may be in subsidized loans)
$57,500 as an independent undergraduate student; (no more than $23,000 of this amount may be in subsidized loans)
Check your borrowing at www.nslds.gov
Interest Rate
Stafford and PLUS Loans – Interest Rates
|
First Disbursed |
subsidized Stafford (undergraduates) |
unsubsidized Stafford |
Plus Loan FFEL Program |
Plus Loan Direct Loan Program |
7.1.2006 – 6.30.2008 |
6.8% |
6.8% |
Variable |
Variable |
7.1.2008 – 6.30.2009 |
6.0% |
6.8% |
8.5% |
7.9% |
7.1.2009 – 6.30.2010 |
5.6% |
6.8% |
8.5% |
7.9% |
7.1.2010 – 6.30.2011 |
4.5% |
6.8% |
7.9% |
|
7.1.2011 – 6.30.2012 |
3.4% |
6.8% |
7.9% |
|
7.1.2012 and later |
6.8% |
6.8% |
7.9% |
How much does a borrower repay each month?
The amount a borrower repays depends on how much is borrowed, the interest rate and over how many years the loan will be repaid. Put these amounts into the Direct Loan Repayment Calculator to get the amount of monthly repayment.
Deadline Dates-
To receive loan funds, PCC recommends all requirements completed no later than 1 week prior to the end of the final term of the loan period. For example, for a two-term Fall/Winter (September 26, 2011 to March 25, 2012) loan must have awarded loans acceptance and Entrance Counseling completed by March 16, 2012.