Federal Direct Stafford Loans
Subsidized Stafford loans are only available to undergraduate students beginning July 2012.
A FAFSA must be filed before TU can determine eligibility for Stafford loans. To qualify for a Direct Subsidized Stafford loan, students must exhibit financial need as determined by the FAFSA. Students exhibiting no financial need, or no remaining need after other aid sources, may qualify to borrow a Direct Unsubsidized Stafford Loan. Direct Stafford loans have an interest rate of 3.86%, and a fee of 1.051% is deducted from each disbursement on or before November 30, 2013, or 1.072% on or after December 1, 2013. The federal government pays the interest on a subsidized loan while a student is in school. Unsubsidized Stafford Loans begin accruing interest at the time the loan disburses.
A student may defer the interest payment or may choose to pay the interest quarterly. Borrowers are required to complete entrance counseling, e-sign an eMPN and complete exit counseling upon leaving the university. Students may complete entrance counseling and the eMPN (electronic master promissory note) through the direct loan website studentloans.gov. A Direct Stafford eMPN is valid for ten years. Stafford loans disburse in two equal payments for a two-semester loan. At least one-half of the loan period must elapse before the second installment can be disbursed. A student has the right to cancel all or any portion of the loan within 14 days of the loan crediting the account. Repayment begins six months after the student drops below half- time enrollment. Please visit studentloans.gov for repayment plans. Aggregate loan amounts for dependent undergraduate students are $31,000 (not to exceed $23,000 in subsidized Stafford funds). Aggregate loan amounts for independent undergraduate students are $57,500 (not to exceed $23,000 in subsidized Stafford funds). Aggregate loan amounts for graduate/professional students are $138,500 (not to exceed $65,500 in subsidized Stafford funds). Direct Stafford loans credit to the student’s account no earlier than the first day of class upon the completion of an eMPN and entrance loan counseling. A disbursement funds letter will be mailed to the student’s local address when funds are credited.