Federal Direct Stafford Loans

There are two types of Federal Direct Stafford Loans:

  • Subsidized – The government pays the interest while you’re in school. To receive a subsidized loan, you must be able to demonstrate financial need as determined by the FAFSA. The interest rate for undergraduate subsidized loans disbursed between July 1, 2024 – June 30, 2025 is 6.53%.
  • Unsubsidized – You are responsible for all of the interest, but you can have the payments deferred until after graduation. All students, regardless of need, are eligible for the unsubsidized loan as long as they file a FAFSA. Interest begins accruing immediately upon disbursement. The interest rate for undergraduate unsubsidized loans disbursed between July 1, 2024 – June 30, 2025 is 6.53%. The interest rate for graduate unsubsidized loans disbursed between July 1, 2024 – June 30, 2025 is 8.08%.

The amount of the loan you will be offered is determined by factors such as the cost of attendance, loan eligibility, year in school, aid already awarded, such as grants and scholarships, and loan limits. You must be enrolled for at least six hours (half-time enrollment) each semester to receive Federal Direct Stafford Loans.

Application Process

To apply, you must first submit a Free Application for Federal Student Aid (FAFSA). Once the Financial Aid Office has processed the application, we will send you information explaining how to view and accept the offered aid.

First-time Direct Loan borrowers need to complete a Master Promissory Note (MPN) and Entrance Loan Counseling.  These two things can be completed at studentaid.gov and MUST be done before loan funds can be paid to your student account.

Federal Direct Stafford Loan records are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.  Borrowers have access to view their Title IV, HEA loan records here.

Are You A Graduate Student?

As a result of the Budget Control Act of 2011, SEC. 502, subsidized loans cannot be awarded to graduate and professional students (college grade level 6 and 7) for loan periods beginning on or after July 1, 2012.  The amount of loan eligibility will be the same but none of it will be subsidized.  You will be responsible for the interest from the time the funds are received (it is better to make the interest payments while you are in school but it can be deferred also).  This does not affect subsidized loans that you already have.

Stafford Loan Counseling

  • Entrance Loan Counseling: First-time borrowers must complete entrance loan counseling before any Stafford Loan funds can be released.
  • Exit Loan Counseling: If you received a Federal Stafford loan while attending Truman State University, you must complete Exit Loan Counseling any time you withdraw, transfer, receive a degree, or drop below half-time status. Exit loan counseling information is also available on the Federal Student Aid website.

Borrowing Limits

Information regarding borrowing limits for undergraduate and graduate students at the dependent and independent levels, can be found on the Federal Student Aid website.

Cohort Default Rate

Truman State University’s cohort default rate for Federal Subsidized and Unsubsidized Direct Loans is 2.6% compared to 7.3% for the national average cohort default rate.

Description of Repayment Plans

There are several repayment plans:

  • standard
  • extended
  • graduated
  • income driven
  • pay as you earn
  • income contingent
  • income sensitive

How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. Repayment begins six months after your graduate or drop below half-time enrollment. The standard repayment term is ten years and the minimum monthly payment is $50.  Additional loan repayment information can be found at on the Federal Student Aid website.