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Direct Stafford

Time Limitation on Direct Subsidized Loan Eligibility for First Time Borrowers on or after July 1, 2013.

As of July 1, 2013 there is a limit on the maximum period of time (measured in academic years)that you can receive Direct Subsidized Loans.  In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your current program.This is called your "maximum eligibility period".     

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. Public Law 112-74 amended HEA section 428(a)(3)(A)(i)(l) to temporarily eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis.  This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014. 

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.

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 (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. 

 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

 
 


$138,500This limit   includes Stafford Loans received for undergraduate study.

 
 

 

School   of Dental Medicine

 
 

 

$38,500

 
 

 

$224,000This limit   includes Stafford Loans received for undergraduate study.

 
 

 

Brody   School of Medicine

 
 

 

$38,500

 
 

 

$224,000This limit   includes Stafford Loans received for undergraduate study.