Direct Stafford
Effective Fall 2012, the US Congress has ended the interest subsidy for graduate and professional student loans. Graduate and professional students are still eligible to apply for the Unsubsidized Direct Stafford Student Loan.
Direct Stafford Loans, issued from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education through East Carolina University. Direct Stafford Loans include the following Direct Subsidized Loans (loans for students with financial need) and Direct Unsubsidized Loans (loans for students without financial need) . Both require the completion of the Free Application for Federal Student Aid (FAFSA).
The Direct Subsidized Loan are for students with financial need. Students are not charged interest while enrolled in school at least half-time and during grace and deferment periods.
The Direct Unsubsidized Loan accrues (accumulates) interest from the time it's first paid out. You can pay the interest while you are in school, during grace periods, and deferment or forbearance periods, or you can allow it to accrue and be capitalized (added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay.
Students receiving a Stafford Loan for the first time must complete a Master Promissory Note(MPN) online. The MPN is a legal document in which the student promises to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan.
There are limits on the maximum amount you are eligible to receive each academic year (annual loan limit) and in total (aggregate loan limits). The actual amount you can borrow each year depends on your year in school, whether you are a dependent or independent student and other factors. Depending on your financial need, you may be eligible to receive a subsidized loan for an amount up to the annual subsidized loan borrowing limit for your grade level of study. If you have education expenses that have not been met by subsidized loans and other aid, you may also receive an unsubsidized loan as long as you don't exceed the combined subsidized and unsubsidized annual loan limits.
Annual Maximum and Aggregate Limits: The following chart provides the annual maximum and aggregate loan limits for Subsidized and Unsubsidized Federal Direct Stafford Loan:
|
Classification
|
Dependent Undergraduate Student
|
Independent Undergraduate Student
|
|
Freshmen
1-29 earned credits
|
$5,500—No more than $3,500 of
this amount may be in subsidized loans.
$4,000- Parent PLUS Denial
|
$9,500—No more than $3,500 of this amount
may be in subsidized loans.
|
|
Sophomore
30-59 earned credits
|
$6,500—No more than $4,500 of
this amount may be in subsidized loans.
$4,000-Parent PLUS Denial
|
$10,500—No more than $4,500 of this amount
may be in subsidized loans.
|
|
Junior/
Senior
60-90+ earned credits
|
$7,500—No more than $5,500 of
this amount may be in subsidized loans.
$5,000- Parent PLUS Denial
|
$12,500—No more than $5,500 of this amount
may be in subsidized loans.
|
|
Aggregate
Limit
|
$31,000—No more than $23,000
of this amount may be in subsidized loans.
|
$57,500—No more than $23,000 of this
amount may be in subsidized loans.
|
|
Graduate
and Professional
|
$20,500
|
$138,500—This limit
includes Stafford Loans received for undergraduate study.
|
|
School
of Dental Medicine
|
$38,500
|
$224,000—This limit
includes Stafford Loans received for undergraduate study.
|
|
Brody
School of Medicine
|
$38,500
|
$224,000—This limit
includes Stafford Loans received for undergraduate study.
|
Entrance Counseling
Entrance Counseling is a federal requirement of all students who are borrowing a Federal Direct Stafford Loan for the first time at ECU. Before loans can be credited to your must complete this requirement.
Master Promissory Note
The Master Promissory Note(MPN) is a multi-year binding legal agreement that student borrowers must signs in order to obtain a Federal Direct Stafford Loan. The MPN lists the conditions of the loan as well as the terms of repayment.
