A William D. Ford Direct Stafford Loan is extremely low risk loan because the Federal government guarantees them against default. A Federal Stafford Loan allows you to borrow money for your education. Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest, just like car loans and mortgages. Loans are also legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years. For more information regarding Federal Student Loans, please visit the www.FederalStudentAid.ed.gov website.
There are two types of Stafford Loans: Subsidized and Unsubsidized
Federal Subsidized Stafford Loan
- U.S. Department of Education pays interest while borrower is enrolled at least half time (6 credit hours) or during grace and deferment periods
- Have a financial need as determined by your FAFSA application
Federal Unsubsidized Stafford Loan
- Interest begins to accrue immediately after the first disbursement, unlike the Subsidized Stafford loan
- You must be at least a half-time student (6 credits)
- A financial need as determined by your FAFSA application is not a requirement. However, the borrower must have a completed FAFSA on file
Currently, there is a fixed interest rate of 4.5 percent for loans first disbursed on or after July 1, 2010.
Approximately 1% origination and insurance fees may be deducted from each disbursement.
The borrower will receive a 0.5% interest rebate from each disbursement.
Stafford Loan Annual Maximums
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Year in School
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Dependent Undergraduate
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Independent Undergraduate*
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Graduate or Professional Student
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First Year
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$5,500 (maximum of $3,500 can be subsidized)
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$9,500 (maximum of $3,500 can be subsidized)
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$20,500 (maximum of $8,500 can be subsidized)
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Second Year
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$6,500 (maximum of $4,500 can be subsidized)
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$10,500 (maximum of $4,500 can be subsidized)
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$20,500 (maximum of $8,500 can be subsidized)
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Third Year and Beyond
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$7,500 (maximum of $5,500 can be subsidized)
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$12,500 (maximum of $5,500 can be subsidized)
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$20,500 (maximum of $8,500 can be subsidized)
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*A dependent student whose parent applied and was denied for a Parent PLUS loan is eligible for an increase in the unsubsidized portion of their Stafford Loan
For more information on the William D. Ford Federal Direct Stafford Loan, please logon to www.direct.ed.gov
Once you have decided to apply for the Federal Stafford Loan, please begin with Entrance Counseling:
- Please logon to https://studentloans.gov and follow ALL steps listed
- Click "Sign In" under the "Manage My Direct Loan" section
- Type in all requested information, click "Sign In"
- Select "Complete Entrance Counseling"
- Choose your academic status
- Read all information listed, click “Next” to move on. You must answer all questions to complete this process.
- Once completed, please print this confirmation page for your records
After completion of the Entrance Counseling the borrower must complete a Master Promissory Note, please follow the steps listed below
- Select "Complete New MPN"
- Select the type of loan you are completing
- Read over the information listed and complete ALL steps until you reach the end. Please print the completed MPN.
**There may be options that must be expanded to view
PLEASE NOTE:
For questions regarding the completion of the Entrance Counseling or MPN contact the Departmentn of Education at 1-800-577-7394. Concerns regarding the Delaware State University's financial aid process, should be directed to our office by phone at (302) 857-6250, fax (302) 857-6251 or by email at finaid@desu.edu.
