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)
- 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)
-
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
Stafford Loan Origination Fees
As of July 1, 2008:
A net origination fee of 0.5% is deducted proportionately from each loan disbursement.
The 0.5% net origination fee is a result of the Direct Loans rebate of 2.5% from the 3.0% fee required by law.
If the student fails to make 12 monthly payments on-time, a charge for the difference between the 0.5% origination fee and the 3.0% origination fee will be added to the outstanding balance of the loan.
For more information, visit the Department of Education.
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 |
| GRADUATE STUDENTS | ||
| Base Amount* | Additional Unsubsidized Amount | |
| Graduate and Professional Student | $8,500 | $12,000 |
| Veterinary Medicine Student | $8,500 | $32,000 |
| Undeclared Graduate Student |
$5,500 (two semesters only) |
$7,000 (two semesters only) |
| Teacher Certificate | $5,500 | $7,000 |
*The base amount is the aggregate amount of Federal Subsidized Stafford AND Federal Unsubsidized Stafford loans.
|
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 |