Important Information for Student Loan Borrowers

* As a student loan borrower, be aware of your rights and responsibilities.

* Be a responsible borrower. If you have borrowed more money than you need for the semester, you can always return it. There are no penalties for early repayment.

* Know your allotted grace period for each loan. If you go below half time status or withdraw from school, you will enter your grace period. If your grace period elapses and you are not enrolled, you will begin your repayment period.

* Pay off accruing interest to avoid interest capitalization when entering repayment.

* Avoid defaulting on your student loan. If you have trouble making monthly payments, contact your student loan provider or school for help and information.


Direct Stafford Loans, from the William D Ford Federal Direct Loan Program , are low-interest loans for eligible undergraduate and graduate students to help cover the cost of higher education. These federal loans are borrowed directly from the U.S. Department of Education. These loans do not require a credit check.  A small origination fee is withheld from the loan when it is disbursed to you. You do not have to make payments on Direct Stafford Loans while you are enrolled at least half-time (deferment). You also have a six month grace period after you graduate or drop below half-time enrollment before you begin repayment.


There are two types of Stafford loans: Subsidized and Unsubsidized.

Subsidized Direct loans provide low interest rates and are available to students who demonstrate financial need based on income and other information provided on the FAFSA.

    • Subsidized
      • Based on need
      • Federal government pays the interest for the borrower on this loan while he/she is enrolled at least half-time.
      • Repayment of the principal and interest on the loan begins six months after the borrower graduates or drops below half-time.
    • Unsubsidized
      • Not based on need.
      • Interest will be charged while you are enrolled. Interest and repayment of principal begins 6 months after you graduate or drop below half-time status.
      • You have the option to pay the interest as billed by the servicer throughout your schooling, or to allow the interest to be added to the principal at repayment.


Interest rates for these loans can be found at loan limit chart. 

Entrance counseling

Signing your master promissory note  

Borrower rights and responsibilities 

Exit counseling