Federal Direct Stafford Loans

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Federal Direct Stafford Loans

Federal Direct Stafford Loans are available to all eligible students who complete a Free Application for Federal Student Aid (FAFSA).

Subsidized	Eligibility for Subsidized Direct Stafford Loans is based on a student’s financial need. A subsidized loan will not accrue interest while the student is enrolled in school at least half-time and through the grace period.
Unsubsidized	All students are eligible for Unsubsidized Direct Stafford Loans, regardless of financial need. An unsubsidized loan will accrue interest beginning at disbursement. Interest may be paid or deferred until the loan goes into repayment.

How to Apply

New Students

First time borrowers at Moravian must complete Loan Entrance Counseling and the Federal Direct Stafford Loan Master Promissory Note at www.studentloans.gov. Sign in under "Manage My Direct Loan". You will need to know your FAFSA PIN number. Once signed in, click on “Complete Entrance Counseling” and then “Complete Master Promissory Note”.

Transfer students who have borrowed through the Direct Loan program at their previous institution do not need to complete the Master Promissory Note but they must complete Entrance Counseling.

Current Students

For 2010-2011, all returning students must complete a Federal Direct Stafford Loan Master Promissory Note at www.studentloans.gov. Sign in under “Manage My Direct Loan”. You will need to know your FAFSA PIN number. Once signed in, click on “Complete Master Promissory Note”. If you have previously completed Loan Entrance Counseling at Moravian College, you do not need to complete it again.

Loan Limits for Dependent Students

Class Level	Base Amount (May be Subsidized and/or Unsubsidized)	Additional Unsubsidized Amount	Annual Loan Limit
Freshman	$3,500	$2,000	$5,500
Sophomore	$4,500	$2,000	$6,500
Junior or Senior	$5,500	$2,000	$7,500
Post-Baccalaureate Teacher Certification	$5,500		$5,500

Dependent students may borrow a maximum of $31,000 in Stafford Loans for their undergraduate education. No more than $23,000 may be subsidized.

Loan Limits for Independent Students (and Students Whose Parents Have Been Denied a Parent PLUS Loan)

Class Level	Base Amount (May be Subsidized and/or Unsubsidized)	Additional Unsubsidized Amount	Annual Loan Limit
Freshman	$3,500	$6,000	$9,500
Sophomore	$4,500	$6,000	$10,500
Junior or Senior	$5,500	$7,000	$12,500
Post-Baccalaureate Teacher Certification	$5,500	$7,000	$12,500
Graduate	$8,500	$12,000	$20,500

Independent Students and students whose parents have been denied a Parent PLUS Loan may borrow a maximum of $57,500 in Stafford Loans for their undergraduate education with no more than $23,000 being subsidized. Graduate students may borrow a maximum of $138,500 with no more than $65,000 being subsidized.

Terms and Conditions

Federal Subsidized Direct Stafford Loans have a fixed interest rate of 4.5% for loans disbursed after July 1, 2010 and prior to June 30, 2011.
Federal Unsubsidized Direct Stafford Loans have a fixed interest rate of 6.8% for loans disbursed after July 1, 2010 and prior to June 30, 2011.
The standard 10-year repayment period begins 6 months after graduation or the student ceases to be enrolled at least half-time.
There is a net Origination Fee of 0.5% (1.5% minus a 1% up-front rebate requiring that the first 12 payments, once the loan goes into repayment, be on time).