Direct Subsidized and Unsubsidized Stafford Loans
The Federal Direct Stafford Loan program provides low-interest loans to students enrolled at least half-time. Note the difference between subsidized and unsubsidized Stafford loans:
- Subsidized: The government pays the interest while the student is in school and during the six-month grace period.
- Unsubsidized: Interest accrues during the in-school and grace periods.
Note: The lender for the Federal Direct Stafford Loan Program is now the U.S. Department of Education —
not a bank or financial institution. Due to this change in loan processing, ALL Stafford borrowers must complete a new Master Promissory Note for 2009-10. This can be completed online at the Direct Loan website.
Authorization instructions
- Complete an online loan authorization form 2009-2010 Loan Authorization Form.
- Complete the Direct Stafford Master Promissory Note (MPN). The MPN is a written contract between the borrower and the lender. This can be completed online at the Direct Loan website. You will need your FAFSA PIN to sign the MPN.
And, if you are a new borrower:
- Complete Loan Entrance Counseling.
Receiving your loan
The Direct Loan Program will send a loan disclosure statement when your loan has been processed. Save this statement to compare to your online bill later. It will show the total amount of your loan, the disbursement amounts and the estimated disbursement dates. This is an estimation of when the funds will be transferred, NOT the date the funds may be released to you.