Federal Direct Stafford Loan

• Step 1 of 2: Complete the FAFSA
• Step 2 of 2: Complete Entrance Counseling and the Master Promissory Note

Subsidized Stafford Loan

• A need-based loan administered by Iowa State University through funding from the US Department of Education by filing the FAFSA
• The interest on the loan is paid by the federal government while the student remains in school
  (see interest rates and origination fees)
• First time borrowers need to sign the Master Promissory Note for federal Stafford loans
• See below for qualified borrowing amounts

Unsubsidized Stafford Loan

• A loan received by filing the FAFSA
• Interest is not paid by the federal government while the student is in school
  (see interest rates and origination fees)
• Interest will begin to accrue the day the loan is fully disbursed and can be:
  • Paid while the student is in school OR
  • Added to the principal balance of the loan when it enters repayment six months after the student leaves school
• First time borrowers need to sign the Master Promissory Note for federal Stafford loans
• See below for qualified borrowing amounts

Qualified Borrowing Amounts

DEPENDENT STUDENTS
	Base Amount*	Additional Unsubsidized Amount
Freshman	$3,500	$2,000
Sophomore	$4,500	$2,000
Junior	$5,500	$2,000
Senior	$5,500	$2,000
INDEPENDENT STUDENTS
	Base Amount*	Additional Unsubsidized Amount
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior	$5,500	$7,000
Senior	$5,500	$7,000

*The base amount is the aggregate amount of Federal Subsidized Stafford AND Federal Unsubsidized Stafford loans.

CLASSIFICATION
	Annual Unsubsidized Loan Amount
Undeclared Graduate Student	$12,500*
Graduate Student	$20,500
Veterinary Medicine Student	$40,500

*An undeclared graduate student can receive $12,500 over the course of 12 months.

MAXIMUM AGGREGATE (COMBINED TOTAL)
	Maximum Subsidized Loan Limit	Maximum Loan Limit (Sub and Unsub combined)
Dependent Undergraduate Student	$23,000	$31,000
Independent Undergraduate Student	$23,000	$57,500
Graduate or Professional Student	$65,500	$138,500
Health Professions Student (Veterinary Medicine)	$65,500	$224,000