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Loan Features

Direct Loan Interest Rates

Direct Loan Limits: Annual and Aggregate Lifetime

Student/Borrower Rights & Responsibilities

Stafford Loan Deferment, Forbearance and Forgiveness  

Loan Consolidation

 

Loan Servicing Centers for Students

 

Direct Stafford and GradPLUS Loan Counseling

Prior to the first disbursement and before graduation, Stafford and GradPLUS loan borrowers are required by Federal regulation to complete loan counseling. Stafford borrowers are typically required to complete entrance and exit counseling only once during a student’s educational experience unless a student has transferred from another institution or Stafford loan borrowing has gone inactive for over one year. GradPLUS borrowers are required to complete a separate counseling session.

 

Stafford and GradPLUS loan counseling may be completed online at the Department of Education Direct Loan website www.studentloans.gov. Students required to complete loan counseling will be notified by email.

 

Direct Stafford Loan Repayment

Stafford Loan repayment is normally required to begin after a six (6) month grace period following an enrollment status of less than half-time. This includes less than halftime enrollment while in school, withdrawal or leaving school and upon graduation. There is no penalty to a student for early repayment of all or part of a Stafford loan.

 

Refer to U.S. Dept. of Education Direct Loan website for more information regarding repayment options, plans, calculators, discharge and cancellation.

 

           Examples of Typical Direct Stafford Loan Repayments (using fixed 6.8% interest rate)

Loan Amount

Standard

(10 year repayment)

Extended

Graduate

(Estimate)

Income Contingent - Single

(Estimated w/$25,000 annual inc.)

 

Per Month

Total

Repaid

Per

Month

Total

Repaid

Per

Month

Total

Repaid

Per

Month

Total

Repaid

Per Month

Total

Repaid

$3,500

$50

$4,471

Not Available

Not Available

$25

$5,157

$27

$6,092

$25

$6,405

$5,000

$58

$6,905

Not Available

Not Available

$40

$7,278

$38

$8,703

$36

$9,150

$7,500

$83

$10,357

Not Available

Not Available

$59

$10,919

$57

$13,055

$54

$13,725

$10,500

$121

$14,500

Not Available

Not Available

$83

$15,283

$80

$18,277

$76

$19,215

$15,000

$173

$20,714

Not Available

Not Available

$119

$21,834

$114

$26,110

$108

$27,451

$40,000

$460

$55,239

$227

$83,289

$316

$58,229

$253

$72,717

$197

$84,352

   *Source: U.S. Dept. of Education

 

Repayment information is included in the required loan entrance and exit counseling sessions as well as on the Direct Loan Master Promissory Note.

 

Cancellation

Students have the right to cancel all or a portion of a student loan and have it returned to the respective lender. To do so, a borrower must notify OSFA in writing within fourteen (14) days of the date of disbursement. A borrower should contact the lender for procedures to cancel loans after the fourteen day period has expired.