Federal Stafford Loans
Federal Direct Stafford Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education. These loans include:
- Federal Direct Subsidized Stafford Loans
Federal Direct Subsidized Stafford Loans are based on need (as determined by the Free Application for Federal Student Aid (FAFSA), and the federal government pays the interest while you are in school at least half-time. The Stafford Loan has a federal origination fee of up to 1 percent. The interest rate on Stafford Loans disbursed between July 1, 2011 and June 30, 2012 is fixed at 3.4 percent. You will be required to begin repayment on your loan six months after you are enrolled in less than six credit hours, withdraw from all classes or graduate from school. You receive only one six-month grace period.
- Federal Direct Unsubsidized Stafford Loans
Federal Direct Unsubsidized Stafford Loans are not need-based, and you are responsible for interest that accrues while you are attending school. The origination fee rates are the same as the Subsidized Stafford Loan. The interest rate on the Unsubsidized Stafford Loans disbursed between July 1, 2011 and June 30, 2012 is fixed at 6.8 percent. If you want to pay the interest while you attend school, you should indicate that when completing your Master Promissory Note (MPN). If you do not want to make interest payments while you are in school, the interest will be added to your principal balance through a process called capitalization. You will then pay interest on a higher loan amount. For Federal Direct Stafford Loans, there is a loan fee that is a percentage of the amount of each loan you receive. The loan fee is 1 percent, which will be deducted proportionately from each loan disbursement. The specific loan fee that you are charged will be reflected on a disclosure statement sent by the federal government.
Who is Eligible?
- Citizens, permanent residents of the U.S. or permanent residents of an eligible trust territory
- Students who are enrolled in an eligible program of study at Seminole State
- Students who are enrolled on at least a half-time basis (six credit hours each term)
- Students who are meeting the Standards of Progress for financial aid recipients at Seminole State
- Students not currently in default, or do not owe a refund, on any Title IV Program (Federal Pell, SEOG, Perkins, subsidized or unsubsidized Stafford, PLUS or Consolidation Loan)
- Students who have satisfied all Selective Service Act requirements.
How to Apply
Important Reminders
- Borrow responsibly and conservatively. Borrow only what you need.
- These are loans that must be repaid! Repayment is expected even if you are unable to find a job in your field; believe your school owes you a refund; or are displeased with your education and don't complete the program.
- Notify your servicer or current holder of your loan of any changes in your name, address, phone number, enrollment status or if you transfer to another school. You can find your servicer's contact information on the National Student Loan Data System (NSLDS) website.
- To view the status of current loans or to keep track of previous student loans or to view your student loan history, visit the NSLDS website.
- Avoid defaulting on your loans at all costs. If you are unable to make timely payments, call your servicer(s) immediately. Their contact information is found on the NSLDS website. They will be able to explain all your options and work with you to protect your credit rating until you are able to resume your normal payment schedule.
- For tips on minimizing your loan indebtedness, visit www.finaid.org/loans/minimizedebt.phtml.
Seminole State Debt Management Policies
- Loans will not be approved for any former or transfer student whose cumulative GPA is less than 2.0 or is on financial aid cancellation (see policy for Standards of Progress). When cancellation is cleared, the student may then be reconsidered for a loan.
- Any student who has previously defaulted on a student loan will not be approved for another loan at Seminole State unless the defaulted loan is paid in full or "rehabilitated." You must contact your servicer to find out the steps for loan rehabilitation.
- Students who drop below half-time enrollment (at least six credit hours per term) must complete online Exit Counseling.
Loan Repayment
You begin repaying Federal Direct Stafford loans six months after graduation, leaving school or dropping below half-time enrollment (less than six credit hours). You must complete the federally required Exit Counseling before you graduate from Seminole State if you drop below half-time attendance or withdraw from classes completely. Your academic records will be on hold until this is completed.
The Department of Education offers loan repayment plans and calculators.
When your loan is due, the federal loan servicer will mail you a payment schedule with your monthly payment of principal and interest, and the unpaid balance for each month it takes to repay your total debt. If they do not contact you, you are responsible for contacting them at:
Direct Loan Servicing Online
U.S. Department of Education
Borrower Services Department
Direct Loan Servicing Center
PO Box 4609
Utica, NY 13504-4609
800-848-0979
800-848-0983 (TYY)
fsa.customer.support@ed.gov
Annual Stafford Loan Limits
Dependent Students
(whose parents were not denied a PLUS loan) | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|
| First-Year Undergraduate (Freshman) |
$3,500 |
$2,000 |
$5,500 |
| Second-Year Undergraduate (Sophomore) |
$4,500 |
$2,000 |
$6,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) |
$5,500 |
$2,000 |
$7,500 |
| Preparatory Coursework (for enrollment in an undergraduate program) |
$2,625 |
$0 |
$2,625 |
| Teacher Certification Coursework |
$5,500 |
$0 |
$5,500 |
Dependent Students
(whose parents were not denied a PLUS loan) | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|
| First-Year Undergraduate (Freshman) |
$3,500 |
$6,000 |
$9,500 |
| Second-Year Undergraduate (Sophomore) |
$4,500 |
$6,000 |
$10,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) |
$5,500 |
$7,000 |
$12,500 |
| Preparatory Coursework (for enrollment in an undergraduate program) |
$2,625 |
$6,000 |
$8,625 |
| Teacher Certification Coursework |
$5,500 |
$7,000 |
$12,500 |
Aggregate (Lifetime) Stafford Loan Limits
| | Combined Base Limit for Subsidized and Unsubsidized Loans | Additional Limit for Unsubsidized Loans | Total Limit for Unsubsidized Loans (minus subsidized amounts) |
|---|
| Dependent Undergraduate Students (whose parents were not denied a PLUS loan) |
$23,000 |
$8,000 |
$31,000 |
| Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) |
$23,000 |
$34,500 |
$57,500 |
|
