Federal Direct Stafford Loan Process
Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education. Loans are also legal obligations, so before you apply for a student loan, think about the amount that must be repaid over the years. Visit the Federal Student Aid website for more information about loans.
There are two types of Stafford Loans: Subsidized and Unsubsidized
Federal Subsidized Stafford Loan
- U.S. Department of Education pays interest while borrower is enrolled at least half time (6 credit hours) or during grace and deferment periods
- Have a financial need as determined by your FAFSA application
Federal Unsubsidized Stafford Loan
- Interest begins to accrue immediately after the first disbursement, unlike the Subsidized Stafford loan
- A financial need as determined by your FAFSA application is not a requirement. However, the borrower must have a completed FAFSA on file
| Year In School | Dependent Undergraduate | Independent Undergraduate* | Graduate of Professional Student |
|---|---|---|---|
| First Year | $5,500 (maximum of $3,500 can be subsidized) |
$9,500 (maximum of $3,500 can be subsidized) |
$20,500 (all unsubsidized) |
| Second Year | $6,500 (maximum of $4,500 can be subsidized) |
$10,500 (maximum of $4,500 can be subsidized) |
$20,500 (all unsubsidized) |
| Third Year and Beyond | $7,500 (maximum of $5,500 can be subsidized) |
$12,500 (maximum of $5,500 can be subsidized) |
$20,500 (all unsubsidized) |
* A dependent student whose parent applied and was denied for a Parent PLUS loan is eligible for an increase in the unsubsidized portion of their Stafford Loan
Instructions
In order to receive the Federal Stafford Loan, you must complete the Master Promissory Note (MPN) and Entrance Counseling. Please see the Financial Aid Instructional Guide for the instructions on how to complete these documents.
For questions regarding the completion of the Entrance Counseling or MPN contact the Department of Education at 1.800.557.7394. Concerns regarding the Delaware State University’s financial aid process should be directed to our office.