Direct Loan Programs

One step on the path to financing your education could be a Stafford Student Loan. Federal Stafford Student Loans are some of the most affordable financial aid tools available to students and families, with interest rates lower than most other forms of financing and deferred payments until after graduation. Stafford Student Loans can also be consolidated after graduation, making them even more affordable. Please visit www.studentloans.gov for application and further information. Direct PLUS Loans are available to parents of dependent students. PLUS Loans are not based on financial need; eligibility is based on the creditworthiness of the parents. Repayment can be made over ten years at a fluctuating rate.

The Direct Stafford Subsidized Loan payments begin 6 months after graduation, the interest rate currently is fixed at 4.50%.  The government pays the interest rate that builds up every month while going to school.  The maximum that the government will allow the student to borrow is $3,500 gross amount for the year.

The Direct Stafford Unsubsidized Loan payments begin 6 months after graduation, the interest rate currently is fixed at 6.80%, and you are responsible for the interest that accumulates quarterly.  A dependent student will qualify for $  2,000 gross amount for the year and an independent student will qualify for $6,000 a year.

There is a 1% origination fee charged on both Direct Stafford Loans; however, an up-front .5% interest rebate is offered to Direct Stafford Loan borrowers as a repayment incentive, resulting in just a 0.5% origination fee.  To keep the up-front interest rebate, a borrower must make their first 12 required monthly payments on-time.

Direct Parent Plus Loan

• The interest rate on a Direct Parent PLUS Loan is fixed at 7.9 %

• The U. S. Department of Education charges a loan fee of 4 % on the principal amount of each Direct PLUS loan.  This fee is deducted from each disbursement of the loan.  Direct PLUS loan borrowers receive an up-front interest rebate repayment incentive of 1.5% of the loan principal, making the effective up-front fee 2.5 % (4 % minus 1.5 %). 

• To keep the rebate, the parent borrower must make 12 consecutive on-time payments after the loan goes into repayment.

Further information could be found at www.studentaid.ed.gov

The Financial Aid Team can be reached at 888-645-0030 extension 4090 or via email at finaid@sft.edu