Federal Direct Stafford Loans
If you wish to borrow a Direct
Stafford Loan that is not already part of your current
award package, please contact your aid counselor to
determine eligibility. Loan details provided
by the government can be found on their website
here. The Customer Service phone line is:
(800) 848-0979 or (315) 738-6634.
If you wish to decline a Direct Stafford Loan which you
have received at Tufts, simply send your request in
an email to:
studentservices@ase.tufts.edu
To see how much you have
already borrowed in federal loans, please log
into the
National Student Loan Data System (NSLDS).
Subsidized
Direct Stafford Loan
The Subsidized Direct Stafford Loan is a federally subsidized loan, which means that there
are no interest charges while you are enrolled at least half time, and for six months after you leave school or drop
below half time. This six month period is called a grace period.
Depending on eligibility, undergraduates may borrow
Subsidized Direct Stafford Loan in amounts up to $3500 in the first year,
$4500 in the second year, and $5500 in each of the third and fourth years. Loan amounts are divided in half and disbursed per
semester. The interest rate for 2011-2012 is
3.4%. A fee of 0.5% is charged,
subtracted from the amount borrowed.
Note: The interest rate for 2012-13 Direct
Loans will be 6.8%. A 1% fee will be charged. As of
July 1, 2012, interest on Subsidized Direct Stafford
Loans will no longer be deferred during the grace
period.
Unsubsidized Direct Stafford Loan
Any student ineligible for a Subsidized
Direct Stafford Loan may borrow an Unsubsidized
Direct Stafford Loan. Unsubsidized means that all interest charges
for this loan are
the responsibility of the borrower. The rate
is 6.8% fixed for the life of the loan.
Fees are 0.5%. Note: As of July 1,
2012, a 1% fee will be charged. Loan limits are shown below. Borrowers can choose to make
interest payments by checking off the appropriate box on the Master Promissory Note. You may choose to capitalize the interest (add interest charges to the amount owed)
but this will significantly increase the total
amount of your debt burden at repayment. See
loan limits below.
Undergraduate students who borrow their maximum grade
level Subsidized Direct Stafford Loan can also borrow an
additional $2000 in Unsubsidized Direct Stafford Loan. Also, if the parent of an Undergraduate student is
denied a federal PLUS loan, the student may borrow
additional amounts (see below for limits) in
Unsubsidized Stafford Loans.
Concerned about loan indebtedness, and the impact of
loan repayment on future quality of life, we
encourage students not to borrow unless absolutely
necessary.
Deferments
A deferment is a period of time during which the
repayment of principal, and/or interest, of your
federal student loan may be postponed temporarily.
This is a link for Direct Loan deferment
details.
You must contact your loan servicer directly to
defer your loan.
Deferments for FFEL Stafford Loans can be accessed through your lender, or
through the MA state servicing agency,
American
Student Assistance (ASA.) You may also reach ASA
directly, at (800) 999-9080.
Students who have both FFEL and Direct
Stafford
loans will need to complete a deferment form for
each.
If you are unsure if you received a FFEL or Direct Stafford
Loan in previous years, call us at
617.627.2000 and we can check for you, or you can
check online at:
National Student Loan Data System (NSLDS)
Federal Direct Stafford Loan Limits
The Department of Education sets annual and aggregate
(i.e. lifetime) limits on the amount of debt a
student can obtain from the federal government. The
chart below summarizes the current limits for the
Federal Direct Stafford Loan.
| Grade Level |
Dependent Undergraduate
Student |
Independent
Undergraduate Student
** |
Graduate
Student |
| 1st Year/Freshman |
$5,500—No more than $3,500 of this amount
may be in
Subsidized loan.
|
$9,500—No more than $3,500 of this amount
may be in Subsidized loan. |
$20,500—No more than
$8,500 of
this amount
may be in Subsidized loan.
|
| 2nd Year/Sophomore |
$6,500—No more than $4,500 of this amount
may be in Subsidized loan.
|
$10,500—No more than $4,500 of this amount
may be in Subsidized loan.
|
3rd Year/Junior
4th Year/Senior
|
$7,500—No more than $5,500 of this amount
may be in Subsidized loan.
|
$12,500—No more than $5,500 of this amount
may be in Subsidized loan.
|
| Maximum lifetime Stafford
borrowing |
$31,000—No more than $23,000 of this amount
may be in Subsidized loan.
|
$57,500—No more than $23,000 of this amount
may be in Subsidized loan.
|
$138,500—No more than $65,500 of this amount
may be in Subsidized loan.
|
|
** Also applies to
dependent undergraduate students whose parent
was denied a PLUS loan. |
STEP 1. Complete a
Direct Loan Master Promissory Note (MPN).
a. You will need a valid e-mail address, and
must have the PIN given to you when you completed
your Free Application for Federal Student Aid
(FAFSA). If you have lost your PIN go to
www.pin.ed.gov to have it sent to you
electronically.
b. Have on hand the names, addresses and
phone numbers of two people (friend or family) that
will be required as references.
STEP 2. Complete
Entrance Counseling.
The counseling explains about a student’s rights and
responsibilities as a loan borrower. Completion of entrance counseling
is required before loan funds can be disbursed.
If you encounter problems with completing the Master
Promissory Note you may call the Applicant
Information Center at: 800.557.7394 or at: 800.557.7394
|
