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Federal Direct Stafford Loan Process

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education. Loans are also legal obligations, so before you apply for a student loan, think about the amount that must be repaid over the years. For more information regarding Feder-al Student Loans, please visit the https://studentaid.ed.gov/sa/types/loans 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
  • A financial need as determined by your FAFSA application is not a requirement. However, the borrower must have a completed FAFSA on file

 

Stafford Loan Annual Maximums
Year In School Dependent Undergraduate Independent Undergraduate* Graduate of Professional Student
First Year $5,500
(maximum of $3,500 can be subsidized)
$9,500
(maximum of $3,500 can be subsidized)
$20,500
(all unsubsidized)
Second Year $6,500
(maximum of $4,500 can be subsidized)
$10,500
(maximum of $4,500 can be subsidized)
$20,500
(all unsubsidized)
Third Year and Beyond $7,500
(maximum of $5,500 can be subsidized)
$12,500
(maximum of $5,500 can be subsidized)
$20,500
(all unsubsidized)

* 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
 

Instructions

In order to receive the Federal Stafford Loan, you must complete the Master Promissory Note (MPN) and Entrance Counseling. Please see the Financial Aid Instructional Guide for the instructions on how to complete these documents.
For questions regarding the completion of the Entrance Counseling or MPN contact the Department of Education at 1.800.557.7394. Concerns regarding the Delaware State University’s financial aid process should be directed to our office.