what is a direct stafford loan
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What is a 'Stafford Loan ' Stafford Loan. DEFINITION of 'Stafford Loan '. A type of federal, fixed-rate student loan that was available to college and university undergraduate and graduate students attending college at least half-time.
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- direct subsidized loans direct unsubsidized loans subsidized federal stafford loans and unsubsidized federal stafford loans have a six month grace period before payments are due plus loans have no grace period they enter repayment once they are fully disbursed but may be eligible for a deferment
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Federal Direct Loans The Federal Stafford Loan is a long-term, low-interest loan available to all students. 1  Complete the Free Application for Federal Student Aid (FAFSA).  Complete the Master Promissory Note (MPN). If you have borrowed previously at USD you do not need a new MPN.
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- Part of what makes student loans so complex is the sheer number of options. And if you don’t know which one you’re choosing, you could end up with the wrong one for your financial situation. The Direct Loan, also known as a Federal Stafford Loan, is one of the most common federal student loans. If you’re evaluating your loan options at the moment, it helps to know a little more about the Federal Stafford Loan, since it comes in different versions to suit the needs of different borrowers. Understanding the Federal Stafford Loan.
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What is a Stafford Loan? There are two types of Stafford loans: subsidized and unsubsidized. The two types have different financial-need requirements and offer different benefits. Subsidized Stafford loans have a fixed interest rate of 6.8 percent or lower. While you are in school, the government pays your interest for you.
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Federal Direct Subsidized and Unsubsidized Loans Federal Direct Subsidized and Unsubsidized Loans. Federal Direct Subsidized and Unsubsidized Loans (formerly known as Stafford Loans) are available through the William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Penn State Office of Student Aid awards Subsidized or Unsubsidized Loans, or a combination of both, based on financial need.
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Direct Subsidized Stafford Loans: How to Apply Summary: Direct Subsidized Loans (sometimes called Subsidized Stafford Loans) are federal student loans borrowed through the Direct Loans program that offer undergraduate students a low, fixed interest rate and flexible repayment terms.
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Federal Direct loans Federal Direct Subsidized and Unsubsidized loans are the most common and one of the lowest-cost forms of education funding. 1  Interest rate is fixed. 2  Available to students attending at least half time. 3  Loan fee deducted prior to disbursement.
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Subsidized vs. Unsubsidized Stafford Loans There are two types of federal Stafford Loans: Subsidized Stafford Loans and Unsubsidized Stafford Loans. Both types of loans offer fixed interest rates and allow up to 10 years to be paid back, but the Subsidized Stafford Loan has the best perks because it is offered to anyone who exhibits financial need.
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Stafford Loans Stafford loans are for undergraduate, graduate and professional students enrolled at least half-time. As of July 1, 2010, Federal Stafford Loans are made to students only through the Direct Loan program. Stafford loans may be subsidized or unsubsidized.
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- Federal Direct Stafford (Subsidized/Unsubsidized) – Student Loans. Loan Fee Change for Stafford Loans First Disbursed on or after 10/1/2014 and before 10/1/2015: All loans that first disburse after this date will carry a 1.073% origination fee. Fees for loans first disbursed after 10/1/2015 are not yet available.
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All About Stafford Loans Qualifications for a Stafford Loan. The first step towards qualifying for a Federal Direct Stafford Loan is to fill out and submit the Free Application for Federal Student Aid, or FAFSA. Most students will qualify for some form of financial aid but until you submit your FAFSA you will never know what is available to you.
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- Office of Student Financial Aid Services. Federal Direct Stafford (Subsidized/Unsubsidized) – Student Loans. Loan Fee Change for Stafford Loans First Disbursed on or after 10/1/2014 and before 10/1/2015: All loans that first disburse after this date will carry a 1.073% origination fee. Fees for loans first disbursed after 10/1/2015 are not yet available. Federal need and non-need based loan program.
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All About Stafford Loans Stafford Loans, as guaranteed by the Federal government, remain one of the safest, most beneficial and lowest impact student loans available. Qualifications for a Stafford Loan The first step towards qualifying for a Federal Direct Stafford Loan is to fill out and submit the Free Application for Federal Student Aid, or FAFSA. Most students will qualify for some form of financial aid but until you submit your FAFSA you will never know what is available to you.
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Federal Direct Unsubsidized Stafford Loan A Federal Direct Unsubsidized Stafford Loan is awarded as a non-need-based loan after all other need- based loans, grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower.
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- Direct Stafford Loan. Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $5,500. Amounts increase for subsequent years of study, with higher amounts for graduate students.
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Master Promissory Note Direct Subsidized Loans and Direct Unsubsidized Loans William D. Ford Federal Direct Loan Program 1 NOT based on financial need. 2  You are responsible for paying all interest that begins accruing at the time of disbursement. 3  Payment of interest while you’re in school, although not required, is encouraged as it will reduce your total repayment amount. 4  Available to undergraduates, graduate, and professional students.
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Direct, Indirect, and FFEL Student Loans: What's the Difference? Direct and Indirect Loan Types. There are many different loan types, most of which can be either a direct loan or an indirect loan. If you took out your loan after June 30, 2010, however, your loan will be a direct loan. Stafford Loans. This is the most common type of student loan.
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Subsidized vs. Unsubsidized Stafford Loans 1 You are allowed to defer any payments until after you graduate. 2  If you do not demonstrate financial need for the Subsidized Stafford/Direct Loan, you may still borrow the same amounts under the Unsubsidized Stafford/Direct Loan. 3  Offers a maximum of $23,000 to students upon graduation.
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- The Bottom Line. Subsidized and unsubsidized Stafford Loans are designed to allow students with different levels of financial need to pay for higher education expenses. They are similar in many respects but also have important differences. For more information on Stafford Loans, consult your school's financial aid office.
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Federal Direct Stafford Loans Subsidized Stafford Loan. Subsidized Stafford loans are awarded on the basis of need. The interest that accrues on this loan while a student is in school is subsidized (or paid) by the federal government. Typically, the government will subsidize the interest rate until the loan enters into repayment (to include the grace period of the loan).
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Subsidized vs. Unsubsidized Stafford Loans Subsidized vs. Unsubsidized Stafford Loans. 1  You are allowed to defer any payments until after you graduate. 2  If you do not demonstrate financial need for the Subsidized Stafford/Direct Loan, you may still borrow the same amounts under the Unsubsidized Stafford/Direct Loan. 3  Offers a maximum of $23,000 to students upon graduation.
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Master Promissory Note Direct Subsidized Loans and Direct Unsubsidized Loans William D. Ford Federal Direct Loan Program The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended. You must complete a Free Application for Federal Student. Aid (FAFSA) before you receive a Direct Subsidized Loan. or Direct Unsubsidized Loan.
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All About Stafford Loans Types of Stafford Loans: 1  The Subsidized Stafford Loan is a need based low interest student loan that is guaranteed by the US Federal government. 2  The Unsubsidized Stafford Loan is not awarded on the basis of financial need and is available to many more students than the subsidized loan.
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Subsidized vs. Unsubsidized Stafford Loans 1 You are allowed to defer any payments until after you graduate. 2  If you do not demonstrate financial need for the Subsidized Stafford/Direct Loan, you may still borrow the same amounts under the Unsubsidized Stafford/Direct Loan.  Offers a maximum of $23,000 to students upon graduation.
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Federal Direct Student Loan Program Federal Direct Student Loan Program. The William D. Ford Federal Direct Loan Program (also called FDLP, FDSLP, and Direct Loan Program) provides low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education ...