Loans are borrowed money that must be paid back to the lender over a period of time, usually after the student leaves school. Federally-sponsored and privately-sponsored loans are available for college students.
William D. Ford Federal Direct Stafford Subsidized and Unsubsidized Loans
Stafford Loans are low-interest federal student loans available to college students to supplement personal and family resources, scholarships, grants, and work-study. Nearly all students are eligible to receive Stafford Loans regardless of credit. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's financial need.
A subsidized loan's interest is paid by the U.S government as long as the student is enrolled at a post-secondary institution at least half-time. Students are responsible for all interest accrued on unsubsidized loans.
All student borrowers, whether a first-time borrower or previous borrower, are required to complete loan counseling and a Master Promissory Note (MPN). Click here for details.
Stafford loan maximums per semester
|First Year Students||$1166||$666|
|Second Year Students||$1500||$666|
|First Year Students||$1166||$2000|
|Second Year Students||$1500||$2000|
* and dependent students whose parent was denied a PLUS loan
**students whose need is less than zero will have the subsidized portion added to their unsubsidized loan
Aggregate undergraduate Stafford loan maximum
|Subsidized + unsubsidized||$31,000|
|Subsidized + unsubsidized||$57,500|
How to Apply for Federal Direct Student Loans:
- Complete and submit the FAFSA at www.fafsa.ed.gov.
- First time borrowers and transfer students must complete Loan Entrance Counseling at www.studentloans.gov. Student will be required to use his/her Personal Identification Number (PIN) from the U.S. Department of Education to complete this process.
- First-time borrowers (or it has been over 10 years) must complete a Master Promissory Note (MPN) at www.studentloans.gov. Student will need Personal Identification Number (PIN) from U.S. Department of Education to complete this process.
- Effective July 1, 2012, students who are first-time borrowers must wait for 30 days after the first day of the term to receive the first disbursement of the loan.
Federal Direct Subsidized Loans
In order to qualify, student must:
- Have unmet financial need as determined by the FAFSA
- Be enrolled at least half-time (6 credit hours)
- Meet all other eligibility criteria for receiving Federal Student Aid
Interest rates and repayment:
- For loans disbursed between July 1, 2009 and June 30, 2010 the interest rate is fixed at 5.6% with an origination fee of 1.5% with a 1% rebate.
- For loans disbursed between July 1, 2010 and June 30, 2011 the interest rate is fixed at 4.5%. There is an origination fee of 1.0% with a 0.5% rebate.
- For loans disbursed between July 1, 2011 and June 30, 2012 the interest rate is fixed at 3.4%.There is an origination fee of 1.0% with a 0.5% rebate. For loans disbursed between July 1, 2012 and June 30, 2013 the interest rate is fixed at 3.4%. There is an origination fee of 1.0% without rebate.
- The interest is paid by the federal government while the student is in school and during deferment and grace period.
- Repayment begins when student graduates or ceases to be enrolled at least half time for a period of at least 6 months.
- Repayment period of 10 years. For more information on all repayment options, visit www.studentloans.gov.
NEW** Limit On Direct Subsidized Loan Eligibility For Undergraduates Borrowing For The First Time On Or After July 1, 2013
Subsidized loans can be borrowed for up to 150% of the published length of the program of study. For a 2-year associate degree program, the maximum period of subsidized loan eligibility is 3 years. Read for more information on the 150% Federal Direct Subsidized Loan Limit.
Under Federal PLUS Loans
If a family is ineligible to borrow a PLUS loan:
Dependent students whose parents have applied for and have been denied a PLUS loan are eligible for Unsubsidized Loans up to $6,000 annually.
Under Need More Information?
William D. Ford Federal Direct Stafford Parental Loans for Undergraduate Students (PLUS) Loans
PLUS loans enable parents (of dependent students) with good credit histories to borrow funds to help pay for their child’s educational costs. The student for whom a PLUS loan is borrowed must be attending school on at least a half-time basis.
Direct PLUS Loans differ from FFEL PLUS loans in that the money is borrowed directly from the U.S. government instead of a bank. For more information about the difference between FFEL and Direct PLUS loans, please click here.
To apply, parents should complete a prescreening for eligibility and an application at www.studentloans.gov
Nurse Education Assistance Loan Program (NEALP)
The NEALP provides financial assistance to students enrolled in approved nurse education programs in Ohio schools and to encourage students to remain in Ohio as they enter the nursing profession. NEALP loans are limited to $3,000 per year for a maximum of three years or $12,000 total loan balance. After graduation from an approved nurse education program, a borrower may be eligible for debt cancellation at a rate of 20% per year for a maximum of 80% over four years if the borrower is employed in the clinical practice of nursing in the State of Ohio. To be eligible for a Nurse Education Assistance Loan, an applicant must: be enrolled in an approved Ohio pre-licensure or post licensure LPN or RN nurse education program; not owe a refund or be in default on any education loan; and maintain good academic standing. Students preparing for the following nursing professions are also eligible to receive Nurse Education Assistance Loans: Certified Nurse Practitioner, Certified Registered Nurse Anesthetist and Certified Nurse Midwife. Visit the OBR website at www.regents.ohio.gov for more information and to apply.
What is NSLDS?
Federal regulations require that information regarding your loan, including loan types and amounts, be submitted to the National Student Loan Data System (NSLDS). This loan information will be accessible by federal loan agencies, lenders, and institutions determined to be authorized users of the data system. You can access your NSLDS information with your Department of Education issued PIN.
Questions? Need more information?
If you have questions about any of these loans, or need any other information, please contact the Office of Financial Aid at (513) 569-1530 or email us.