Iowa State University

Iowa State University

Office of Student Financial Aid

Federal Direct Stafford Loan

Federal Direct Subsidized Stafford Loan is a need-based loan obtained through the US Department of Education by filing the FAFSA. While the student remains in school, the interest on the loan is paid by the federal government. The interest rate information can be found here. Repayment of interest and principal begins six months after you leave school. See below for qualified borrowing amounts. First time borrowers need to sign the Master Promissory Note for federal Stafford loans.

Track your Stafford Loan account at Direct Loans on the web!

Federal Direct Unsubsidized Stafford Loan is a loan received by filing the FAFSA in which the interest is not paid by the federal government while you are in school and interest will begin to accrue the day the loan is fully disbursed. The interest on the Direct Unsubsidized Stafford Loan will be your responsibility and can be paid while you are in school or added to the principal balance of the loan when it enters repayment six months after you leave school. The interest rate is calculated the same as for the Direct Subsidized Stafford Loan. See below for qualified borrowing amounts. First time borrowers need to sign the Master Promissory Note for federal Stafford loans.

Stafford Loan Origination Fees as of July 1, 2007. The net origination fee of 1.0% is deducted proportionately from each loan disbursement. By law, the total origination fee is 2.5%; however Direct Loans currently offers a 1.5% rebate on this origination fee. If you fail to make 12 on time monthly payments, a charge for the difference between the 1.0% origination fee and the 2.5% origination fee will be added to the outstanding balance of the loan.

Effective July 1, 2007

Classification Year
Number of Credits
Max. Amount Can Borrow
Freshman
0 - 29.5
$3,500/year
Sophomore
30 - 59.5
$4,500/year
Junior
60 - 89.5
$5,500/year
Senior
90+
$5,500/year

Effective July 1, 2007

Classification
Stafford (Subsidized)
Stafford (Un-Subsidized)
Graduate Student
$8,500/year
$12,000/year
Undeclared Graduate
$5,500/One year only
$7,000/One year only
Vet Med Student
$8,500/year
$32,000/year
Teacher Certificate
$5,500/year
$7,000/year

**The amount per classification year is the aggregate amount of Federal Subsidized Stafford AND Federal Unsubsidized Stafford loans.

Maximum Aggregate (Combined Total) Loan Amounts - Undergraduate
Borrower's Academic Level
Subsidized and Unsubsidized
*Dependent Undergraduate Student
$23,000
*Independent Undergraduate Student
$46,000
Graduate or Professional Student
$138,500
Vet Med Student
$224,000

 

*You are a dependent student if you are not one of the following: at least 24 years old by December 31st of the academic year in question; married; a graduate or professional student; someone with legal dependents other than a spouse who receives more than 1/2 of their support from you; an orphan or ward of the court; a veteran. If you meet any one of the above conditions, you are an independent student.