Stafford Loan
Federal Direct Stafford Loans are low-interest federal loans that are either subsidized or unsubsidized. You can receive a subsidized and unsubsidized loan for the same enrollment period as long as the total does not exceed the allowable amount for your grade level.
A subsidized loan is awarded on the basis of financial need. No interest is charged until you begin repayment, or during authorized periods of deferment. The federal government subsidizes the interest during these periods.
The federal government established a customer service line dedicated to address the problems and concerns of borrowers. If you have questions, call the Direct Loans Borrower Customer Service number at 1-800-557-7394.
Effective July 1, 2012, graduate and professional students will not be eligible for subsidized loans.
Eligibility
Annual Loan Limits
Drexel recommends loan limits of smaller amounts in the freshman and sophomore years to preserve a student's ability to borrow in the fifth year. If eligible for less than the loan maximum, you may apply for the difference in unsubsidized funds.
- Freshmen $3,500
- Sophomores $4,500
- Juniors and seniors $5,500
- Graduate/Medical students $8,500
Cumulative Loan Limits
- Maximum of $23,000 as an undergraduate
- Maximum of $65,500 for graduate students, including undergraduate loans
Interest Rate
- For the 2011–12 aid year, the interest rate is fixed at 3.4 percent for undergraduate students and 6.8 percent for graduate students. For 2012–2013 the interest rate for all students is 6.8 percent
- No interest accrues until you begin repayment, or during authorized periods of deferment
Additional Fees
- Currently, the loan fees will be up to 1 percent of the loan amount
- For loans disbursed in subsequent years, the maximum loan fee will be reduced on a gradual basis
Disbursements
- At the beginning of each term of enrollment, including co-op
Repayment
- The student is responsible for repayment
- The length of repayment is 10 years, but may be extended to 25 years
- Repayment begins six months after graduation, withdrawal from the University, or cessation of at least half-time enrollment
- Repayment can be deferred if you return to school at least half-time and for certain other circumstances
- Graduated, income-sensitive, and extended repayment options available
How to Apply
You are automatically considered for Stafford Loans if you file the FAFSA.
When your eligibility has been determined, you will be notified to go online
to sign the promissory note.
Master Promissory Note
A signed Master Promissory Note (MPN) is required to be submitted only once
and remains valid for up to 10 years. The Stafford Loan is thus renewed automatically
for eligible returning students, and will be confirmed each year by a Statement
of Disclosure sent to you from your lender. First-time Direct Loan borrowers
will receive instructions to electronically sign an MPN after July 1.