Federal Direct Stafford Loans (student only)
Federal Direct Loans are loans that are guaranteed to students who are have completed a FAFSA applicati and meet all other general eligibility requirements. Students must also be enrolled in at least 6 credits (half-time) and maintain Satisfactory Academic Progress (SAP).
Two types of federal loans are offered:
- Subsidized Loan:
- Awarded based on financial need
- Interest-free while enrolled in at least 6 credits per semester
- 3.76% fixed interest rate for 2016-2017 (Undergraduate Students ONLY)
- Unsubsidized Loan:
- Acrues interest while in school
- 3.76% fixed interest rate for 2016-2017 (Undergraduate Students)
- 5.31% fixed interest rate for 2016-2017 (Graduate Students)
- Both loan types charge an Origination Fee
- 1.073% - for loans first disbursed between October 1, 2014 - September 30, 2015
- 1.068% - for loans disbursed from October 1, 2015 - September 30, 2016
- Repayment is deferred while the student is enrolled and taking at least 6 credits per semester
- Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
- Students can choose to pay interest on the Unsubsidized Loan while in school
- If you choose not to pay the interest while you are in school and during grace periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
- Repayment begins 6 months after graduation or from the date the student ceases to be enrolled in at least 6 credits
- Complete the FAFSA for the current academic year.
- Comply with any requests from Office of Financial Aid for additional documentation. Any outstanding requirements you may have will be listed on your MAX account.
- Once all requirements are completed, a financial aid award package will be completed for you and available to view on your MAX account. All eligible students will be "offered" a Federal Direct Stafford Loan.
- The student will need to log into his/her MAX account to and accept (or decline) the loan. For instructions on navigating your MAX account, please click here.
- Once the loan(s) have been accepted (or declined), if you wish to make any further changes you must complete a Loan Request Change Form or contact the Office of Financial Aid at 717-871-5100. Please note that only the student may make changes to his/her Federal Direct Stafford Loan.
In addition to the steps above, you must also complete: Entrance Counseling and a Master Promissory Note through www.studentloans.gov.
To log into your account, you will need your:
- FSA User ID and Password - NEW!!!
- Once you have logged into your account, you can click on the link in the center of the page that says "Complete Counseling".
- On the next screen, make sure to click the first option "ENTRANCE COUNSELING"
- If Millersville University is not already listed for you, you will need to search under "Add School to Notify" by first selecting the school state and then school name. Once selected, click "Notify School"
- At the bottom of this page, make sure you are selecting the correct student type (i.e. Undergraduate or Graduate).
- You should now be at the beginning of the Entrance Counseling. Go through and answer all questions, click on all tabs and fill in all blanks.
- If you do not know the answer to the purple "Check Your Knowledge" questions off hand, the answer will be directly above.
- Once you have finished each page of the Entrance Counseling, make sure to click "Submit" so that Millersville receives notification this step has been completed.
Master Promissory Note:
- Once you have submitted the Entrance Counseling, you will see a link to "COMPLETE MASTER PROMISSORY NOTE". Click on this link.
- Enter personal information
- Select Millersville from the list of PA schools
- Provide two personal references
- Continue clicking through each step until you have signed and completed the form.
- You will receive a confirmation once your Master Promissory Note has been completely submitted
NEW 150% Subsidized Stafford Loan Limit - applies to any first -time borrow from July 1, 2013 and beyond.
|Federal Direct SUBSIDIZED Stafford Loan||Federal Direct UNSUBSIDIZED Stafford Loan|
|Eligibility is based on financial need.||Eligibility is NOT based on financial need.|
The Federal Government pays the interest on the loan as long as the student maintains a half time enrollment status of 6 credits per semester (undergraduate and graduate students).
|The Federal Government DOES NOT pay the interest on the loan. Interest is charged from the time the loan is disbursed until it is paid in full.|
|Repayment on both the interest and principal begins SIX months after the student ceases to be enrolled at least half time - graduates, withdraws, does not return the following semester, stops attending classes, or drops below 6 credits. *Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.||The student has two options in the repayment of the interest. It can be paid while enrolled in school (check the box on the Master Promissory Note indicating you wish to pay the interest) OR the loan interest can be capitalized - that is, the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount. In both cases, repayment on both the interest and principal will begin SIX months after the student ceases to be enrolled at least half time - graduates, withdraws, does not return the following semester, stops attending classes, or drops below 6 credits.|
The amount a student can borrow each academic year is based on the student's academic level at the time the loan is processed. The amounts listed are the maximum yearly amounts. If the student receives other financial aid, the loan amount may be less. The following chart is based on a dependent student.
|Earned Credits||Base Federal Direct
|0 - 29.9 credits||$3,500||$2,000||$5,500|
|30 - 59.9 credits||$4,500||$2,000||$6,500|
|60 - 89.9 credits||$5,500||$2,000||$7,500|
- Students may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid (717-871-5100) to cancel or reduce the loan, submit a Loan Change Form online or download the Loan Change Form and return it to the Office of Financial Aid (both forms are available through Financial Aid Forms under Quick Links to the left)
- The loan MUST BE REPAID to the U.S. Department of Education (USDE) through one of the Direct Loan Servicers.
- The student is the borrower.
- Student has up to 10 years to repay the loan depending on the size of the student's debt.
- During the repayment period, under certain circumstances, the lender may grant deferments, forbearances, or cancellations. A list of deferments and cancellations is provided at the time the student signs their Promissory Note.
- Awarded to degree seeking undergraduate and graduate students who are enrolled for at least 6 credits.
- The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible. The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the U.S. Department of Education.
- A student can receive a subsidized and unsubsidized loan for the same period.
- Fees of up to 1.068% may be deducted from the total loan amount at the time of disbursement.
- Loan funds are disbursed in at least 2 installments.
|Earned Credits||Base Federal Direct Stafford Loan (Sub or Unsub)||Base Direct Unsubsidized Loan||Additional Unsubsidized Direct Stafford Loan||Academic Year Limit|
|0 - 29.9 credits||$3,500||$2,000||$4,000||$9,500|
|30 - 59.9 credits||$4,500||$2,000||$4,000||$10,500|
|60 - 89.9 credits||$5,500||$2,000||$5,000||$12,500|
*Due to changes in federal regulation (Budget Control Act of 2011), beginning with the Fall 2012 semester, Graduate students (seeking a Master's Degree or higher) will no longer qualify for a Subsidized Loan - all Federal Direct Stafford Loans will be Unsubsidized.
|Undergraduate Education (dependent student)||$31,000||$23,000 max Subsidized|
|Undergraduate Education (independent student)||$57,500||$23,000 max Subsidized|
Are you confused about how to keep track of your federal loans?
Due to changes in federal regulations, your loans may have been sold and sent to different lenders/servicers. As a borrower, you may have several different federal loans serviced by different companies.
In order to keep track of your federal loans, you can use the National Student Loan Data System (NSLDS) to view detailed information about your loans and current servicers. Please note, this is only for federal loans (Stafford, Perkins, Grad PLUS) and does not include any private/alternative loans.
In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Stafford Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.