Federal Direct Stafford Loans fall into one of two categories:
- Subsidized -- the government pays the interest while you're in school (available to undergraduates ONLY).
- Unsubsidized -- you pay the interest now, although you can have it accrued until repayment starts. This adds the interest payments to the loan balance, increasing the size and cost of the loan (available to all students).
Federal Direct Stafford Loans are offered to undergraduate students completing the FAFSA. To receive a Subsidized Stafford Loan, you must be able to demonstrate financial need. All students, regardless of need, are eligible for the Unsubsidized Stafford Loans. You must complete a Master Promissory Note (MPN) and Entrance Interview before receiving your first Federal Direct Stafford Loan at UB. Students must be enrolled at least half time (6 credits) to receive federal student loans.
For additional information concerning Federal Direct Loans including interest rates, fees, consolidation, deferments and loan calculators, see the Federal Student Aid Direct Loan Site.
Annual Direct Stafford Loan limits:
| Credits toward your current program | Dependent Undergraduate Students | Independent Undergraduate Students | Graduate, Law, and APD Students |
|---|---|---|---|
| First-year 0 - 29 | $5,500 - No more than $3,500 of this amount may be subsidized | $9,500 - No more than $3,500 of this amount may be subsidized | $20,500 - No subsidized amount is available |
| Second Year 30-59 | $6,500 - No more than $4,500 of this amount may be subsidized | $10,500 - No more than $4,500 of this amount may be subsidized | |
| Third and Fourth year 60+ | $7,500 - No more than $5,500 of this amount may be subsidized | $12,500 - No more than $5,500 of this amount may be subsidized | |
| Maximum total debt from Stafford Loans when you graduate | $31,000 - No more than $23,000 of this amount may be subsidized | $57,500 - No more than $23,000 of this amount may be subsidized | $138,500 - No more than $65,000 of this amount may be subsidized |