Federal Direct Stafford Loan (unsubsidized)
Not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. If the student allows the interest to accumulate, it will be capitalized. This means interest will be added to the principal amount of the loan and additional interest will be based on the higher amount. This will increase the total repayment amount of the loan. The student who chooses to pay the interest as it accumulates will repay less on the loan.
Students accepting Direct Loan funds for the first time must complete an online Direct Loan Master Promissory Note before receiving their loan funds.
First-time borrowers who are first-year college students must also complete Direct Loan entrance counseling.
- Federally funded
- Existing Direct Loans can be consolidated.
- Need-based (Cost of Attendance minus other aid)
- Enrolled at least half-time in a degree or certificate program
- Interest begins accruing immediately, may be paid periodically or capitalized (see promissory note).
- Repayment of principle is deferred and there is no interest while enrolled at least half-time.
- Limited deferment provisions; see the Repaying Your Student Loans and the Dept. of Education website (information specifically for teachers)