Federal Direct Stafford Loans (student only)

Keeping Track of your Federal Loans

Are you confused about how to keep track of your federal loans?  Due to changes in federal regulations, your loans may have been sold and sent to different lenders/servicers.  As a borrower, you may have several different federal loans serviced by different companies.  In order to keep track of your federal loans, you can use the following website to view detailed information about them.  Please note, this is only for federal loans (Stafford, Perkins, Grad PLUS) and does not include any private/alternative loans.

www.nslds.ed.gov/nslds_SA

Federal Direct Stafford Loans

The Direct Stafford Loan is a guaranteed student loan – no credit check necessary – and is solely in the name of student.

  • NEW 150% Subsidized Stafford Loan Limit

  • The Federal Direct Stafford Loan will be either Subsidized or Unsubsidized.
  • In order to apply for the Federal Direct Stafford Loan – complete the following steps:
    • Student must:
      • Complete the FAFSA for the current academic year.
      • Once all requirements are completed and a financial aid award package is completed, all eligible students will be "offered" a Federal Direct Stafford Loan.  In order to accept (or decline) the loan, the student will need to log into his/her MAX account and accept (or decline) the loan. 
      • Once the loan has been accepted (or declined), if you wish to make changes to the loan, you must complete a Loan Request Form (available through Financial Aid Forms under Quick Links to the left) or contact the Office of Financial Aid at 717-872-3026 - only the student may make changes to his/her Federal Direct Stafford Loan.
    • If a student wishes to obtain the Federal Direct Stafford Loan, s/he must complete the following:
      • Federal Direct Stafford Master Promissory Note (MPN)
        • Use the Quick Link to the left for the Direct Stafford MPN to complete it online.
        • The student’s PIN (from the FAFSA) is used to sign the MPN online.
        • If you wish to complete a paper form, please contact the Office of Financial Aid at 717-872-3026.  You can only request a paper MPN if Millersville University has already processed the Direct Stafford Loan for you.
      • Federal Direct Stafford Loan Entrance Counseling
        • Use the Quick Link to the left to complete the Direct Stafford Loan Entrance Counseling
        • This must be done so the student understands the terms of his/her loan.
  • Amount borrowed is based on the student's academic level at the time the loan is processed. The amounts listed are the maximum yearly amounts. If the student receives other financial aid, the loan amount may be less.
Earned Credits Base Federal Direct
Stafford Loan
Subsidized or
Unsubsidized
Unsubsidized TOTAL
0 - 29.9 credits $3,500 $2,000 $5,500
30 - 59.9 credits $4,500 $2,000 $6,500
60 - 89.9 credits $5,500 $2,000 $7,500
90+ credits $5,500 $2,000 $7,500
Certification $5,500 $0 $5,500
Graduate/Professional $8,500 $0 $8,500
  • Students may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid (717-872-3026) to cancel or reduce the loan, submit a Loan Change Form online or download the Loan Change Form and return it to the Office of Financial Aid (both forms are available through Financial Aid Forms under Quick Links to the left)
  • The loan MUST BE REPAID to the U.S. Department of Education (USDE) through one of the Direct Loan Servicers. 
  • The student is the borrower.
  • Student has up to 10 years to repay the loan depending on the size of the student's debt.
  • Student selects lender at the time of application.
  • During the repayment period, under certain circumstances, the lender may grant deferments, forbearances, or cancellations. A list of deferments and cancellations is provided at the time the student signs their Promissory Note.
  • Awarded to degree seeking undergraduate and graduate students who are enrolled for at least 6 credits.
  • The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible. The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the U.S. Department of Education.
  • The interest rate on the Unsubsidized Direct Stafford Loans is a fixed rate of 6.8%
  • The interest rate on the Subsidized Direct Stafford Loans is a fixed rate of 3.4%
  • A student can receive a subsidized and unsubsidized loan for the same period.
  • Fees of up to 1% may be deducted from the total loan amount at the time of disbursement.
  • Loan funds are disbursed in at least 2 installments.

Differences between the Federal Subsidized and Unsubsidized Stafford Loan:

Federal Direct SUBSIDIZED Stafford Loan Federal Direct UNSUBSIDIZED Stafford Loan
Eligibility is based on financial need. Eligibility is NOT based on financial need.
The Federal Government pays the interest on the loan as long as the student maintains a half time enrollment status of 6 credits per semester (undergraduate and graduate students). The Federal Government DOES NOT pay the interest on the loan. Interest is charged from the time the loan is disbursed until it is paid in full.
Repayment on both the interest and principal begins SIX months after the student ceases to be enrolled at least half time - graduates, withdraws, does not return the following semester, stops attending classes, or drops below 6 credits. The student has two options in the repayment of the interest. It can be paid while enrolled in school (check the box on the MPN indicating you wish to pay the interest) OR the loan interest can be capitalized - that is, the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount. In both cases, repayment on both the interest and principal will begin SIX months after the student ceases to be enrolled at least half time - graduates, withdraws, does not return the following semester, stops attending classes, or drops below 6 credits.
  • In addition to the base amount listed in the previous section, INDEPENDENT STUDENTS or DEPENDENT STUDENTS whose parents have been DENIED a PLUS loan, may borrow an additional amount. The amounts listed are the maximum yearly amounts. If the student receives other financial aid, the loan amount may be less.
Earned Credits Base Federal Direct Stafford Loan (sub or unsub) Base Direct Unsubsidized Loan Additional Unsubsidized Direct Stafford Loan Academic Year Limit
0 - 29.9 credits $3,500 $2,000 $4,000 $9,500
30 - 59.9 credits $4,500 $2,000 $4,000 $10,500
60 - 89.9 credits $5,500 $2,000 $5,000 $12,500
90+ credits $5,500 $2,000 $5,000 $12,500
Certification $5,500 $0 $7,000 $12,500
Grad/Prof $0* $8,500* $12,000 $20,500

*Due to changes in federal regulation (Budget Control Act of 2011), beginning with the Fall 2012 semester, Graduate students (seeking a Master's Degree or higher) will no longer qualify for a Subsidized Loan - all Federal Direct Stafford Loans will be Unsubsidized.

Total Federal Direct Stafford Loan Limits

LEVEL Aggregate Limit Comments
Undergraduate Education (dependent student) $31,000 $23,000 max Subsidized
Undergraduate Education (independent student) $57,500 $23,000 max Subsidized
Graduate Education $138,500