Federal Direct Stafford Loans

Federal Direct Stafford Loans

(The U.S. Department of Education is the lender.)
 

APPLYING 

 When you complete the Free Application for Federal Student Aid, you are applying for all of the aid programs for which you may be eligible, including Direct Loans. No separate application is needed to be awarded Direct Stafford Loans for fall/spring terms. A separate loan application is needed for summer terms.

ELIGIBILITY 

Direct Loans are for undergraduate, graduate and professional degree students, enrolled at least half-time, who meet the general requirements to receive federal aid.

You must be enrolled in at least six credit hours if you are an undergraduate student and 3 credit hours if you are a graduate student each term of the loan period to be eligible to receive a Federal Direct Stafford Loan.

AWARDING 

Upon verification of eligibility, you will be awarded Direct Loans at the maximum amount for which you are eligible. Upon initial award of your loan, you will receive an award notice at your student email account. You must accept, decline, or reduce your loan on your myHenderson account. 

TYPES OF LOANS 

You may receive a Direct Subsidized Stafford Loan, a Direct Unsubsidized Stafford Loan, or both for the same academic year. The type of loan you receive is based on your financial need as determined under federal regulations. Need is not a factor in determining eligibility for an unsubsidized loan.

With a Direct Subsidized Stafford Loan, the interest is paid by the federal government while you are attending school at least half-time.

With a Direct Unsubsidized Stafford Loan, interest begins to accumulate on the day the loan is disbursed to your student account and continues until the loan is paid in full. Your repayment of the interest can be deferred while you are in school and attending at least half-time.

The interest rate on both loans is fixed at the time the loan disburses. New loan interest rates for subsequent years are adjusted once a year on July 1. To obtain current interest rates click here.

For 2012-2013, the loan fee charged for a Direct Subsidized and Direct Unsubsidized Stafford Loan is 1.0 percent of the amount borrowed.

YEARLY LOAN LIMITS  

The amount you can borrow each year for Direct Subsidized and Direct Unsubsidized Stafford Loans depends on whether you are a dependent student or an independent student. The amount you can borrow may also be limited by other factors such as other financial aid you may receive. The loans are for educational purposes and can never exceed the cost of your attendance (determined by the Office of Financial Aid) less any other aid.

Loan Limits for the Dependent Undergraduate Student
1st year 0-29 hours:
$5500 – only $3500 may be subsidized

2nd year 30-59 hours:
$6500 – only $4500 may be subsidized

3rd and 4th years 60+ hours:
$7500 – only $5500 may be subsidized

Loan Limits for the Independent Undergraduate Student

1st year 0-29 hours:
$9500 – only $3500 may be subsidized

2nd year 30-59 hours:
$10,500 – only $4500 may be subsidized

3rd and 4th years 60+ hours:
$12,500 – only $5500 may be subsidized

The independent limits also apply to undergraduate dependent students whose parents are unable to borrow a Parent PLUS Direct Loan. The parent must apply and receive a denial before the student is eligible for the additional amounts. There must be a denial on file for each year that the student wishes to borrow the additional amount. The additional funds will not be awarded until the student completes & submits a loan change request form.

Loan Limits for Graduate/professional students:
$20,500 -  unsubsidized funds only 

AGGREGATE LOAN LIMITS

Maximum total debt aggregate limit for a dependent undergraduate student is $31,000 (only $23,000 in subsidized loans).

Maximum total debt aggregate limit for an independent (undergraduate) student is $57,500 (only $23,000 in subsidized loans).

Maximum total debt aggregate limit for a graduate or professional student is $138,500.

PROMISSORY NOTE 

 
In order for loan funds to disburse to your account, you must complete a Federal Direct Loan Master Promissory Note (MPN). You can complete an electronic promissory note (eMPN) online at http://www.studentloans.gov. You will need to use your U.S. Department of Education's Personal Identification Number (PIN) to complete your eMPN. This is the same PIN that you used to complete your Free Application for Federal Student Aid (FAFSA) online. If you did not complete your FAFSA online, or do not have a PIN, or have misplaced your PIN, please visit the U.S. Department of Education’s website at www.pin.ed.gov.

ENTRANCE COUNSELING

If you are a first-time borrower at HSU with the Federal Direct Stafford Loan program, you must complete entrance counseling. You may complete online entrance counseling at www.studentloans.gov. To complete entrance counseling you will need to use your U. S. Department of Education’s Personal Identification Number (PIN) or your name, social security number, and date of birth. Entrance counseling must be completed before your loan will disburse to your account.

Your PIN number is the same number you used to complete your Free Application for Federal Student Aid (FAFSA) online. If you did not complete a FAFSA online, or do not have a PIN, or have misplaced your PIN, please visit the U.S. Department of Education’s website at www.pin.ed.gov .

DISBURSEMENTS

If your Master Promissory Note and Direct Loan Entrance Counseling are complete, loan funds will credit directly to your student account. If excess funds are received, you will receive a refund check during the regular registration period. 

All first time freshmen have a 30 day hold on their first loan disbursement.

 For release dates, click here.

CHANGING YOUR LOAN AMOUNTS 

You are not required to accept the loan amount that we award you. You can reduce or cancel your loan on your myHenderson account. 

BORROWER’S RESPONSIBILITIES

You are required to begin making payments on your Federal Direct Stafford Loans after you graduate, leave school, or drop below half-time enrollment. Plan ahead for repayment and budget wisely. You have a grace period of six months before you must begin repayment. The Federal Direct Stafford Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. The Federal Direct Stafford Loan Program allows you to choose which repayment plan is best for you. Federal Direct Stafford Loan borrowers may choose between the standard, extended, graduated, income contingent, and income based repayment plans. Repayment of your loans is managed by the Direct Loan Servicing Center. You may contact the Direct Loan Servicing Center for additional repayment information at 1-800-848-0979 or www.studentloans.gov .   

Immediately after dropping below half-time enrollment, withdrawing from school or graduating, you should complete a Loan Exit Counseling session at www.nslds.ed.gov .
 
To estimate an amount of repayment based on the standard, extended, graduated, or contingent repayment plans you may access the Direct Loan's interactive repayment calculator website at www.studentloans.gov . Calculations are estimates and the values may not reflect the actual amount computed by the Direct Loan Service Center.

Click here to complete your student Federal Direct Stafford Loan Master Promissory Note(MPN) .     

                                                                                                                                      
Click here to complete your Federal Direct Stafford Loan Entrance Counseling.
 
The average student loan debt for Stafford loan borrowers obtaining a bachelors degree at Henderson State University is $20,815.00

The average student loan debt for Stafford loan borrowers obtaining a masters degree at Henderson State University is $36,648.00

(The above figures are based on the May 2008 graduating classes) 

 

Please contact Pam Shuffield, Loan Officer at 870-230-5136 with your Stafford loan questions.

Please contact Scott Freeman at 870-230-5113 with your Perkins loan questions.