Direct Stafford Loans
A Stafford Loan is a low-interest loan available to students enrolled in a minimum of 6 credits per semester. These loans are made and guaranteed by the federal government. Depending on the student’s need, as calculated by the U.S. Department of Education, these loans are either made on a subsidized basis (the federal government pays the interest during the enrollment period) or on an unsubsidized basis (the student pays the interest).
To determine your loan eligibility, we will assume the same enrollment status (full-time, 3/4 time, 1/2 time) for both the fall and spring semesters based upon the anticipated enrollment information you provided on your FAFSA.
WHAT IS THE DIFFERENCE BETWEEN A DIRECT SUBSIDIZED AND A DIRECT UNSUBSIDIZED STAFFORD LOAN?
The Federal Government pays the interest for Direct Subsidized Loans while the student is in college or while the loan is in deferment. Interest begins accruing for Direct Unsubsidized Loans as soon as the loan is taken out.
ANNUAL LOAN LIMITS
| DEPENDENT STUDENTS* | SUBSIDIZED | UNSUBSIDIZED | TOTAL |
| Freshmen (0 – 29 credits) | $3,500 | $2,000 | $5,500 |
| Sophomore (30 – 59 credits) | $4,500 | $2,000 | $6,500 |
| Junior/Senior (60 and above) | $5,500 | $2,000 | $7,500 |
| INDEPENDENT STUDENTS | SUBSIDIZED | UNSUBSIDIZED | TOTAL |
| Freshmen (0 – 29 credits) | $3,500 | $6,000 | $9,500 |
| Sophomore (30 – 59 credits) | $4,500 | $6,000 | $10,500 |
| Junior/Senior (60 and above) | $5,500 | $7,000 | $12,500 |
| Graduate/Professional | $0 | $20,500 | $20,500 |
*NOTE: For dependent students whose parents cannot borrow under PLUS program, the amount a student can borrow under the Stafford program is the same as an independent student.
AGGREGATE LOAN LIMITS
- Dependent Undergraduate: $31,000 (no more than $23,000 in subsidized)
- Independent Undergraduate: $57,500 (no more than $23,000 in subsidized)
- Graduate/Professional: $138,500 (no more than $65,000 in subsidized)
WHAT ARE THE INTEREST RATES?
2020-21 Direct Loan Interest Rates and Fees
(for loans with a first disbursement date on or after July 1, 2020)
| DIRECT LOAN PROGRAM | INTEREST RATE | Origination FEE* | INTEREST CAP |
| Subsidized and Unsubsidized Federal Direct Loan (for Undergraduates only) | 2.75% | 1.057% | 8.25% |
| Unsubsidized Federal Direct Loan (for Graduates only) | 4.30% | 1.059% | 9.5% |
WHEN ARE PAYMENTS DUE?
Repayment begins six months after leaving college, payments are made monthly, and you have ten years to repay the loan; however students may apply for a consolidation or an extended repayment plan.
RIGHTS AND RESPONSIBILITIES OF A STUDENT LOAN BORROWER
In accordance with federal regulations, first-time Stafford loan borrowers must complete entrance counseling and a Master promissory Note. No loans can be credited to a student’s account until the entrance counseling and MPN are complete.
Students who are recipients of a federal Stafford loan who drop below six (6) credits or graduate must complete an “Exit Counseling” at https://studentaid.gov/ “Sign in” with your information, then select “Complete Counseling” Next choose “EXIT” Once completed the information will come to us in about 48 hours.
FEDERAL STAFFORD LOAN ENTRANCE COUNSELING
In accordance with federal regulations, first-time Stafford loan borrowers must complete entrance counseling on the web at https://studentaid.gov/. You must “Sign In” first then choose “Complete Counseling” then select “Entrance” No loans can be credited to a student’s account until Entrance Counseling and MPN are complete.
FEDERAL STAFFORD LOAN MASTER PROMISSORY NOTE (MPN)
The Federal Stafford Loan Master Promissory Note (MPN) is a promissory note under which you may receive multiple subsidized and unsubsidized Federal Stafford Loans over a maximum ten-year period. In accordance with federal regulations, first-time Stafford loan borrowers must complete the Master Promissory Note (MPN) on the web at https://studentaid.gov/. You must “Sign In” first then choose “Complete MPN” then select “Subsidized/Unsubsidized” No loans can be credited to a student’s account until Entrance Counseling and MPN are complete.
- If you complete a Federal Stafford Loan (MPN) as a freshman or during your first semester at Caldwell, you WILL NOT have to complete another application for 10 years, or until you enter another College/University. You will receive a Loan Servicer Summary from your Servicer agency. Your Servicer will provide you with a Loan Disclosure Statement.
- If you are a first-time borrower at Caldwell University, your first disbursement of loan proceeds cannot be made until 30 days after the first day of your enrollment period or start of classes
- Your loan will be disbursed according to a schedule established by Caldwell University and Federal guidelines. It will be made in two or more installments and transferred electronically to your university account.
PLEASE WATCH THIS VIDEO TUTORIAL FOR A STEP BY STEP GUIDE: https://www.youtube.com/watch?v=bkMvjWV4iak
Please remember that a Federal Stafford Loan is a loan, not a grant. You must repay the funds you borrow, plus interest and fees. If you have any questions, do not hesitate to contact the Office of Financial Aid at 973-618-3221 or at FinancialAid@Caldwell.edu .
To decline or accept a lesser amount please notify us at FinancialAid@Caldwell.edu.
A two step process must be completed in order to receive the Stafford Student Loans. PLEASE CLICK BELOW to start the “Entrance Counseling” and “Complete a MPN” application process:
CLICK BELOW to start the “Entrance Counseling” and “Complete a MPN” application process: