Wayne State University

Federal Stafford Loans

Federal Direct Subsidized and Unsubsidized Loans

Federal Direct Stafford loans are fixed-rate loans for students who are attending school at least half time and are the most common and one of the lowest-cost forms of education funding. Federal Loans are either subsidized (the government pays the interest while a student is in school) or unsubsidized (the student pays all the interest, although you can have the payments delayed until after graduation).

To receive a subsidized Stafford Loan, you must be able to demonstrate financial need as determined by filing the FAFSA.

An unsubsidized Stafford loan is not need-based and does not qualify for a federal interest subsidy. Interest starts accruing on this loan at the time of disbursement. With the unsubsidized Stafford loan, you can delay the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. Even though the unsubsidized Stafford Loan is available to all students regardless of financial need, you must still submit the FASFA to be eligible.

 2008-09 Loan Processing

Beginning with the 2008-09 academic year, Wayne State University will be a full participant in the William D. Ford Federal Direct Loan Program.

The Direct Loan program offers many benefits to Wayne State University students, including:

As a full Direct Loan participant, Wayne State University will no longer be able to certify Federal Stafford or PLUS loans through private lenders after the 2007-08 school year.

To Borrow a Federal Direct Stafford Loan for 2008-09

  1. Check Pipeline to accept all or a portion of your Stafford loan awards.

  2. First time Stafford loan borrowers are required to complete Stafford Loan Entrance Counseling.This is an online process, which may be completed at mappingyourfuture.org/se. 

  3. Complete a Direct Loan Master Promissory Note at https://dlenote.ed.gov. 

  1-2-3 Loan Process for 2008-09 

Eligibility Rules and Loan Limits 

Enrollment Requirement: You must be enrolled at least half-time in order to be eligible for the Federal Stafford Loan. For a JD student, five credit hours is considered half time during the academic year. For an LLM student, four credit hours is considered half time. During the spring/summer semester enrollment a JD student, must be enrolled for 3 credit hours and an LLM student for 1 credit hour to be considered half time. 

 
Half-Time
Full-Time
JD Student
5-9 credits
10+ credits
LLM student
4-7 credits
8+ credits

The annual combined subsidized and unsubsidized maximum is $20,500, no more than $8,500 which may be in subsidized loans. You cannot borrow more than your financial need or the estimated cost of attendance. The annual limits apply to the academic year, which includes Fall, Winter and Summer semesters.

The maximum total Federal Stafford Loans limit at the graduate or professional level, including loans received for undergraduate study is $138,500, no more than $65,500 of which may be in subsidized loans.

 

 

Federal DIRECT

Loans

Loan Funded By:

US Department of Education

Loan Servicer:

Direct Loan Servicing Center

Guarantor:

US Department of Education

Loan Servicer:

Direct Loan Servicing Center

Direct Stafford

6.8% Interest Rate

Direct Stafford Loan Fees:

 

0.5% Loan Fee

 

(Includes a 1.5% rebate which will be added back if first 12 loan payments are not made on-time.)

 

Direct Stafford

Repayment Interest Rates and Benefits:

 

 

 

 

·  0.25% Interest Rate Reduction for electronic payment

Federal Direct Stafford Loan Terms

Interest rates for Federal Direct Stafford Loans for graduate students are fixed at 6.8%. There is a 0.5% origination fee deducted from the loan proceeds by the U.S. Department of Education. This loan fee includes a 1.5% up-front rebate that assumes 12 on-time monthly payments.

 

 

 

 

 

Federal Stafford Loan Repayment

Direct Loan Servicing Web Site: www.dl.ed.gov

Federal Stafford Loans have a fixed interest rate of 6.8%.

Subsidized Federal Stafford Loan: The federal government pays the interest on the loan during: (1) your enrollment in school on at least a half time basis, (2) a six-month grace period immediately following your separation from school, and (3) a deferment, which is a temporary, authorized time when your payments may be postponed.

Unsubsidized Federal Stafford Loan: "Unsubsidized" means the federal government does not pay the interest on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You may choose either to pay the accumulating interest while you are in school, during the grace period for the principal, and during a deferment of the principal or to have the unpaid, accumulating interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.