Federal Direct Stafford Loans


Medaille College participates in the Federal Direct Loan Program. This means that students will now get Stafford Loans directly through the U.S. Department of Education.

Federal Direct Subsidized Stafford Loan

Eligibility is based on financial need, and the federal government will pay the interest while you are enrolled at least half-time, during your grace period, and during deferment periods. Repayment begins six months after you graduate, withdraw, or drop below half-time status.


Federal Direct Unsubsidized Stafford Loan

Eligibility is not based on need, and you are responsible for paying the interest during all periods starting from the date the loan is first disbursed. Interest can be deferred while in school, but it will be capitalized (added to the principal balance) at repayment, which begins six months after leaving school or dropping below half-time.

Interest Rates for 2012-2013
Undergraduate Direct Subsidized Stafford: 6.8%
Undergraduate Direct Unsubsidized Stafford: 6.8%

The fee for the Direct Subsidized and Direct Unsubsidized Loans is 1.0%.


Annual and Aggregate Loan Limits for Direct Subsidized Stafford Loans and
Direct Unsubsidized Stafford Loans

Year Dependent Undergraduate Students Independent Undergraduate Students
(and dependent students whose parents cannot borrow PLUS loans)
Freshmen $5,500
(maximum $3,500 subsidized)
(maximum $3,500 subsidized)
Sophomores $6,500
(maximum $4,500 subsidized)
(maximum $4,500 subsidized)
Juniors and Seniors $7,500
(maximum $5,500 subsidized)
(maximum $5,500 subsidized)
Aggregate Loan Limits $31,000
(maximum $23,000 subsidized)
(maximum $23,000 subsidized)


How to Apply for a Direct Stafford Loan 

1. Complete the Free Application for Federal Student Aid (FAFSA).

2. You will be sent an award letter by the Financial aid Office.  Follow the instructions and accept, decline, or accept a partial amount of the offered loan.

3. Once you have confirmed the amount that you want to borrow, we will electronically transmit the loan application data to the U.S. Department of Education.

4.  First-time Direct Stafford Loan borrowers must complete an Electronic Master Promissory Note (e-MPN).  This can be done online by visiting studentloans.gov.  You will need your PIN to sign in; this is the same PIN used to complete the FAFSA.

5. Federal regulations require that first-time Stafford borrowers complete Loan Entrance Counseling before receiving any loan proceeds.  To complete the Direct Stafford Loan Entrance Counseling, visit studentloans.gov.  You will need your PIN to sign in; this is the same PIN used to complete the FAFSA.  The Financial Aid Office will be notified when you have completed your Entrance Counseling.

I'm grateful for the education I've received.

The instructors were knowledgeable and welcomed class discussions, with
respect for each student's contribution. I've learned how to be a more
effective leader. My capstone class gave insight on how to combine all
the education learned to operate a business. That's when I realized how
much I had sharpened my knowledge.

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