William D. Ford Federal Direct Stafford Loan Program

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• Federal Subsidized Stafford Loan
• Federal Unsubsidized Stafford Loan
• Interest Rate and Origination Fee
• APPLY: Loan Application Requirements
• Loan Eligibility Amounts

This loan is commonly referred to as the Federal Direct Loan Program. Direct Loans are low-interest loans for students to help pay for the cost of the student's eduction after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. Students must complete the Free Application for Federal Student Aid (FAFSA) with Carthage College's school code (institutional code: 003839), before you will be considered for a Direct Loan.

There are two types of  Federal Direct Loans available to students:

Federal Subsidized Direct Loan: Your eligibility is based on your financial need and your academic level (see charts below). You don’t have to make any payments until six months after you graduate or cease to be enrolled at least half time. The government pays the interest while you are in school and during your six-month grace period.

Federal Unsubsidized Direct Loan: Your eligibility is not based on financial need. You may borrow the cost of education minus all other financial aid you receive, up to the amount allowed for your academic level (see charts below). You have two choices for paying interest: you may pay it while you are enrolled full time, or it can accrue and become part of the principal that you will owe. You begin making payments six months after you graduate or cease to be enrolled at least half time.

Interest Rate and Origination Fee: As of July 1, 2009, the interest rate for the Federal Subsidized Loan to undergraduate students is 5.6% for loans originated between July 1, 2009 and June 30, 2010. As of July 1, 2010, the interest rate for the Federal Direct Subsidized Loan to undergraduate students will be 4.5% for loans originated between July 1, 2010 and June 30, 2011. The rate for unsubsidized loans is 6.8%.

There is also an origination fee based on the amount of the total loan; this amount is deducted from your loan before you receive the funds. As of July 1, 2010 the origination fee will be 0.5%.

Applying - Loan Application Requirements: If you are a first-time Federal Direct Stafford Loan borrower, before you can receive any funds to your account you must complete the following two steps:

1. 1. Electronic Master Promissory Note (EMPN)
   
2. 2. Electronic Pre-Loan Entrance Counseling

NOTE: Please wait until after June 1, 2010 to complete this process for loans for the 2010-2011 award year!

Loan Eligibility Amounts: The maximum Federal Direct Stafford Loan amounts available vary according to academic level and dependency status. Please see the tables below for more information.

Dependent Undergraduate Students(whose parents were not denied a PLUS loan)

Independent Undergraduate Students(and dependent students whose parents were denied a PLUS loan)