What are Federal Direct Stafford Loans?
Federal Direct Stafford loans can be subsidized or unsubsidized and are processed through the U.S. Government. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. Repayment begins six months after graduation or six months after your enrollment status is less than half time (five or fewer credits).

A subsidized loan is awarded on the basis of financial need. You can calculate your financial need by subtracting your Expected Family Contribution (EFC) from the Cost of Attendance. The EFC is determined by the Department of Education and is calculated from your data on the Free Application for Federal Student Aid (FAFSA). The COA is determined by the College. Interest on this loan is not charged while you are in school enrolled for six or more credits and during your six month grace period. The federal government "subsidizes" the interest for you during these periods.

An unsubsidized loan is non-need based. You will be charged interest from the time the loan is disbursed until it is paid off. If you allow the interest to accrue while you are in school or during other periods of non-payment, it will be capitalized. The interest will be added to the principal amount of your loan and additional interest will be based on that higher amount.

How much can I borrow?
The amounts you can borrow depend on your grade level in school and on the type of student you are: dependent undergraduate, independent undergraduate (or a dependent undergraduate whose parents are unable to get a PLUS Loan), or a graduate student.

Annual Loan Limits for Stafford Subsidized and Unsubsidized Loans First Disbursed on or after July 1, 2008:

	Dependent Undergraduate Student	Independent Undergraduate Student	Graduate/Professional Student
1st Year	$5,500 - No more than $3,500 of this amount may be in subsidized loans.	$9,500 - No more than $3,500 of this amount may be in subsidized loans.	$20,500 - No more than $8,500 of this amount may be in subsidized loans.
2nd Year	$6,500 - No more than $4,500 of this amount may be in subsidized loans.	$10,500 - No more than $4,500 of this amount may be in subsidized loans.
3rd and 4th Years (each	$7,500 - No more than $5,500 of this amount may be in subsidized loans.	$12,500 - No more than $5,500 of this amount must be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate	$31,000 - No more than $23,000 of this amount may be in subsidized loans.	$57,500 - No more than $23,000 of this amount may be in subsidized loans.	$138,500 - No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.

How do I apply for a Federal Direct Stafford Loan?
Students must submit the FAFSA. The Student Financial Services Office will then notify you of your eligibility for a Federal Direct Stafford Loan. If you choose to accept the loan, you must complete both the Entrance Counseling and the Master Promissory Note (MPN).

How do I receive my loan funds?
Loan funds are disbursed in two or more disbursements directly to Iona College via electronic funds transfer (EFT). The Federal Government deducts a 1% origination fee from your loan proceeds prior to disbursement.

What are the interest rates?
Stafford Loans disbursed between July 1, 2009 and June 30, 2010 has the following interest rates:
Subsidized - 5.6%
Unsubsidized - 6.8%