Federal Direct Stafford Loan

Menu

Information for 2013-2014

The Bipartisan Student Loan Certainty Act of 2013 was passed by the federal government on August 9, 2013. The new law amends the interest rate formula for all Direct Loan types and applies to loans for which the first disbursement is made on or after July 1, 2013. The amount of funding available will not change, but the interest rates on the loans will now be based on the 10-year Treasury bill, WHICH HAS LOWERED THE RATES FOR 2013-2014 (see below).  Here is a summary of the changes relevant to graduate students:

1. All Stafford loans for graduate students will continue to be unsubsidized  for loans disbursed on or after July 1, 2013 and before July 1, 2014. The interest rate will be fixed at 5.41%.

2. A loan origination fee of 1.051% will be charged on loans first disbursed between July 1, 2013 and November 30, 2013. Loans first disbursed December 1, 2013 and later will be charged an origination fee of 1.072%.

What are Direct Unsubsidized Loans?

A Direct Unsubsidized Stafford Loan is a student loan in the student’s name for educational purposes. The loan funds come from the government. Loan repayment is deferred while the student is enrolled in school at least half-time and during the 6-month grace period after the student either graduates or drops below half-time. When the grace period is finished, the student starts repayment on the loan.

An unsubsidized loan is not awarded based on financial need. The student will be charged interest on the loan from the time it disburses until it is paid in full. The student has two options: To defer interest payments until graduation in which case the interest will be added to the principal amount of the loan or to pay the interest while in school and not have it accrue.

How much can the student borrow in Direct Unsubsidized Loans?

Masters level: Students will be able to borrow a maximum of $20,500.

Doctoral level: Students are eligible for a maximum of $27,000.

What is the interest rate?

Direct Unsubsidized Loans for graduate students are fixed at a 5.41% rate. There is an origination fee of 1.051% which is taken out at disbursment.

How does the student apply?

  1. Complete the FAFSA.
  2. Complete any documents requested by the Financial Aid Office.
  3. The student must accept loans online on myWheaton--This gives the Financial Aid Office permission to transmit information to the Department of Education.
  4. First-time borrowers must complete Loan Entrance Counseling.
  5. First-time borrowers must complete a master promissory note (MPN) at www.studentloans.gov.

Where do I go for entrance counseling and to sign the MPN?

Students can manage their loans,  including completing loan counseling and e-signing their master promissory note, at www.studentloans.gov, the Department of Education website for student loan management. (Beware--there is also a studentloans.com site which is NOT the government site).

You will need to use your FAFSA PIN to access the site and to sign the MPN. If you do not have a PIN, you may obtain one at PIN web site >>.

IMPORTANT: On the website, there is important information about browser requirements under "What You Need". If you do not have a compatible browser, various features will not work.

Entrance and Exit Counseling

Entrance Counseling:

Fulfill your Stafford Loan Counseling Requirement by completing this online Entrance Interview >>

Exit Counseling:

Fulfill your Stafford Loan Counseling Requirement by completing this online Exit Interview >>

Information for 2013-2014

The Bipartisan Student Loan Certainty Act of 2013 was passed by the federal government on August 9, 2013. The new law amends the interest rate formula for all Direct Loan types and applies to loans for which the first disbursement is made on or after July 1, 2013. The amount of funding available will not change, but the interest rates on the loans will now be based on the 10-year Treasury bill, WHICH HAS LOWERED THE RATES FOR 2013-2014 (see below).  Here is a summary of the changes relevant to graduate students:

1. All Stafford loans for graduate students will continue to be unsubsidized  for loans disbursed on or after July 1, 2013 and before July 1, 2014. The interest rate will be fixed at 5.41%.

2. A loan origination fee of 1.051% will be charged on loans first disbursed between July 1, 2013 and November 30, 2013. Loans first disbursed December 1, 2013 and later will be charged an origination fee of 1.072%.

What are Direct Unsubsidized Loans?

A Direct Unsubsidized Stafford Loan is a student loan in the student’s name for educational purposes. The loan funds come from the government. Loan repayment is deferred while the student is enrolled in school at least half-time and during the 6-month grace period after the student either graduates or drops below half-time. When the grace period is finished, the student starts repayment on the loan.

An unsubsidized loan is not awarded based on financial need. The student will be charged interest on the loan from the time it disburses until it is paid in full. The student has two options: To defer interest payments until graduation in which case the interest will be added to the principal amount of the loan or to pay the interest while in school and not have it accrue.

How much can the student borrow in Direct Unsubsidized Loans?

Masters level: Students will be able to borrow a maximum of $20,500.

Doctoral level: Students are eligible for a maximum of $27,000.

What is the interest rate?

Direct Unsubsidized Loans for graduate students are fixed at a 5.41% rate. There is an origination fee of 1.051% which is taken out at disbursment.

How does the student apply?

  1. Complete the FAFSA.
  2. Complete any documents requested by the Financial Aid Office.
  3. The student must accept loans online on myWheaton--This gives the Financial Aid Office permission to transmit information to the Department of Education.
  4. First-time borrowers must complete Loan Entrance Counseling.
  5. First-time borrowers must complete a master promissory note (MPN) at www.studentloans.gov.

Where do I go for entrance counseling and to sign the MPN?

Students can manage their loans,  including completing loan counseling and e-signing their master promissory note, at www.studentloans.gov, the Department of Education website for student loan management. (Beware--there is also a studentloans.com site which is NOT the government site).

You will need to use your FAFSA PIN to access the site and to sign the MPN. If you do not have a PIN, you may obtain one at PIN web site >>.

IMPORTANT: On the website, there is important information about browser requirements under "What You Need". If you do not have a compatible browser, various features will not work.

Entrance and Exit Counseling

Entrance Counseling:

Fulfill your Stafford Loan Counseling Requirement by completing this online Entrance Interview >>

Exit Counseling:

Fulfill your Stafford Loan Counseling Requirement by completing this online Exit Interview >>