The Federal Direct Stafford Loan is a low-interest laon available to students for post secondary educational expenses.
Students must demonstrate financial need to qualify for subsidized loans. Financial need is determined by a federally legislated analysis of family financial information provided on a 2005/2006 Free Application for Financial Student Aid (FAFSA). Students who do not qualify for the maximum Subsidized Direct Loan may be approved for the difference in an Unsubsidized Direct Loan. The combination of the Subsidized and Unsubsidized Direct Loans may not exceed the annual and aggregate limits for loans under the Direct Loan Program. Provisions of the subsidized and unsubsidized are the same with the exception of those noted below.
You will not be charged interest until you begin repayment. Repayment begins sex months after you cease to be enrolled at least half-time (6 credit hours)
The government will not pay interest while you are in school as it does for the Subsidized Direct Loan. Interest accrues and must be paid by the borrower or capitalized during periods of in-school enrollemtn and/or deferment.
Students are eligible to participate in the Direct Loan Program if they:
The maximum loan amount for graduate and professional students is $18,500, of which no more than $8,500 may be in subsidized loans. The maximum cumulative Federal Direct Stafford Loan amount is $138,500, including any amount borrowed for undergraduate study.
Loan eligibility cannot be determined until you are registered for the Fall 2006 or Spring 2006. It is important that your request be submitted as soon as possible after registering for your Fall or Spring classes. Your application will take approximately seven to ten business days to review.
You will need to submit a 2005/2006 Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed on-line here. The Boston University code is 002130.
First time borrowers will need to complete a Direct Loan Promissory Note. You can complete the promissory note online here. You will need your federal Personal Identification Number (PIN). If you do not have a PIN or cannot recall it, you can request a duplicate PIN here. Boston University will be notified within 3-5 business days that you have completed your promissory note on-line.