A Federal Direct Loan offers independent freshman students up to $9,500 and sophomores up to $10,500 per year. (Dependent freshmen students may borrow up to $5,500.  Dependent sophomore students may borrow up to $6,500.) 

Students pursuing a one-year certificate will remain at freshman level for borrowing purposes. This is a loan and must be repaid. Interest rates vary annually. If you already have a Direct Loan, borrowing a new loan will not affect the rate or terms of your previous loan(s). You may qualify for a subsidized and/or an unsubsidized Direct Loan up to the amounts listed above. There will be a 1.057% origination fee that will be taken out of the total amount of the loan by the U.S. Department of Education for loans first disbursed on or after Oct. 1, 2023 and before Oct. 1, 2024.

Subsidized Direct Loans
These loans are based on financial need, therefore, some students may not qualify. With a subsidized Direct Loan, no interest accumulates and no repayment is required as long as the student is enrolled in college at least half time. Freshman may borrow up to $3,500.  Sophomores may borrow up to $4,500.

For subsidized loans first disbursed on or after July 1, 2023 and before July 1, 2024, the interest rate will be 5.50%.

Unsubsidized Direct Loans
Students who do not qualify for a subsidized Direct Loan may borrow up to the federal maximum amounts through an unsubsidized Direct Loan. Loan payments can be deferred as long as the student is enrolled at least half-time.  Interest will accrue and can be paid by the borrower while in school and during the grace and repayment period. Independent students have the option of borrowing an additional $4,000 in unsubsidized Direct Loan Funds.

For unsubsidized loans first disbursed on or after July 1, 2023 and before July 1, 2024, the interest rate will be 5.50%.

To determine your eligibility for these programs, you must apply for federal aid, as outlined on the Application Process page. Funds are issued only after tuition and fees have been paid.

Credit records
Student loans can be an excellent way to finance an education and establish a good credit rating at the same time. When it is time for repayment, always communicate with your lender when changing your name, address or phone number or if you have difficulty making payments.

Enrollment required: A minimum of 6 credit hours in classes required for your declared major.

Disbursement
All student loans will be disbursed in two payments during each term. The payments will be based on midterm grade and continued attendance in registered classes. For fall and spring, 16-week classes, disbursements will occur during the fourth and ninth week of classes. If you are taking a second 8-week course, attendance will be verified prior to receiving your second disbursement.  For summer term courses, disbursements will occur during the third and sixth week of classes. If you are taking a second 5-week course, attendance will be verified prior to receiving your second disbursement.  At the time of each disbursement, students must be currently enrolled and attending a minimum of 6 credit hours in courses required for their major.

Applications required: Free application for federal student aid (FAFSA) and if you are a first-time borrower, you are required to complete loan entrance counseling and the online Master Promissory Note.

Students borrowing Federal Direct Loan funds are required to complete the following steps:

• Entrance counseling and master promissory note
• Before you stop attending Stark State at least half-time, or you graduate, you must complete an Online Stafford Loan exit interview.