Federal Direct Stafford Loans are available to eligible students who complete the  Free Application for Federal Student Aid (FAFSA on the Web). This federal student aid is made available through the  William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Office of Financial Aid awards a Direct Subsidized or Direct Unsubsidized Stafford Loan, or a combination of both loans, based on financial need.  

The information you report on your FAFSA is used to determine your  Expected Family Contribution (EFC) , which is a calculated formula established by law. Your EFC is not equal to the amount you and your family must pay, but rather an index that allows colleges to determine financial need. To determine your financial need, your EFC is subtracted from your cost of attendance.  

 Federal Direct Subsidized Stafford Loan
A Federal Direct Subsidized Stafford Loan is awarded based on your demonstrated financial need. The federal government pays interest on a subsidized loan while you are enrolled in school in at least half-time and other deferment periods. The interest rate for Federal Direct Subsidized loans disbursed on or after July 1, 2012, Federal Direct Subsidized loans for undergraduate students only will have a fixed interest rate of 6.8%.  

Federal Direct Unsubsidized Stafford Loans
A Federal Direct Unsubsidized Stafford loan is not based on your financial need. The interest rate for Federal Direct Unsubsidized loans disbursed on or after July 1, 2006 is fixed at 6.8%. You are not required to pay the interest on this loan while in school, but we recommend that you do. You will be charged interest starting at disbursement until it is paid in full. If the interest accumulates, it will be added to the principal amount of the loan and increase the amount to be repaid.  

Please keep in mind that your eligibility for these programs depends on the information you provide on the  FAFSA, the program you are in and the number of credits you have completed.  

Generally, you will begin to pay your Federal Direct Stafford Loans and interest six months after you graduate or you leave the university. However, you may defer paying the loan's principal if you maintain at least half-time enrollment. 

Apply for a Federal Direct Stafford (Subsidized or Unsubsidized) Loan
To apply for a Federal Direct Stafford loan, you must complete the  FAFSA each year. To be eligible, you must be enrolled in a degree program for at least six credits per semester and be maintaining  Pitt-Bradford’s Satisfactory Academic Progress Standards. If you are eligible for a Federal Direct Stafford loan, it will be included on your Financial Aid Notification.

E-sign Your Federal Direct Stafford (Subsidized or Unsubsidized) Loan Master Promissory Note (MPN)
If you are a first-time borrower of the Federal Direct Stafford loan, you will be required to complete a Master Promissory Note (MPN) before the loan funds can disburse. In most cases, you will only need to complete one MPN during your college career. E-sign your Federal Direct Stafford loan MPN on the studentloans.gov  web site using your Federal Student Aid PIN by selecting Sign-In. After you sign in, choose Complete MPN and then select Subsidized/Unsubsidized. Follow the four-step process listed on the studentloans.gov Web site to sign your MPN.  

Note: If you are experiencing technical difficulty signing your MPN online at studentloans.gov, please contact the U.S. Department of Education's customer service center for borrowers toll free at 800-557-7394. You can request a paper MPN from our office; however, a paper MPN will take four to six weeks to process--more than double the time it takes to process the MPN online --so it is always best to sign the MPN online if possible.  

Loan Entrance Counseling
If you are a first-time borrower of the Federal Direct Stafford loan, you are also required to complete Loan Entrance Counseling before the loan funds can disburse. Complete this required counseling session by selecting Entrance Counseling after you sign in on the studentloans.gov  web site. The counseling session provides you with information that will help you understand your rights and responsibilities as a federal loan borrower, as well as other tools to assist you with managing your loans.  

***Please note that this requirement is separate from e-signing the loan MPN.*** 

Fees
A fee of 1% will be deducted from the gross amount of loan borrowed, so you need to take that into consideration when determining the amount you need to borrow.   

Receiving Federal Direct Stafford Loan Funds
It is important to know that loan funds will automatically credit to your student account if the Direct Loan Processor has a valid MPN on file for you and you have completed loan entrance counseling. After you complete your registration and semester classes begin, your student financial aid will begin to disburse into your Student account.  

Reduce or Decline a Federal Direct Stafford (Subsidized or Unsubsidized) Loan
If you wish to reduce or cancel your loan(s), please select complete the Loan Change Form. 

Repayment
After you graduate, leave school, or drop below half-time enrollment, you have a six month period of time before you have to begin repayment. This six month period of time is called the "grace period". Your federal loan servicer will provide information about repayment and will notify you of the date your loan repayment begins.  

You will be able to choose a repayment plan that meets your needs. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Generally, you’ll have from ten to twenty-five years to repay your loans. Our office recommends that you explore the Direct Loan Repayment Plans and Calculators for more information about the repayment plans and to calculate your estimated repayment amount under each of the different plans. 

Loan Services
For specific questions about loan repayment or deferment, you can contact your federal loan servicing center directly. If you are not sure who your federal loan servicer is, you can look it up on National Student Loan Database System^SM (NSLDS).  

Direct Loan Servicing Center
Phone: 800/848-0979
TDD/TTY: 800/848-0983
Overseas: 315/738-6634
Web site:  https://www.myedaccount.com/ 

FedLoan Servicing (PHEAA)
Phone: 800/699-2908
TDD/TTY: 800/722-8189
Overseas borrowers: 717-720-1985
Web site: www.myfedloan.org  

Great Lakes Educational Loan Services, Inc.
Phone: 800/236-4300
TDD/TTY: 800/236-4300
Overseas: 608/246-1700
Web site: www.mygreatlakes.org  

Nelnet
Phone: 888/486-4722
TDD/TTY: 888/486-4722
Overseas: 303/696-3625
Web site: www.nelnet.com 

Sallie Mae
Phone: 800/722-1300
Fax: 866/266-0178
TDD/TTY: 877/713-3833
Overseas: 254/554-4535
Web site: www.salliemae.com 

Mohela 
Phone: 888/866-4352
Fax: 888/866-4708
633 Spirit Drive
Chesterfield, MO 63005

ESA/EDFinancial 
298 N. Seven Oaks Drive
Knoxsville, TN 37922 

CornerStone- UHEAA 
60 South 400 West
Salt Lake City, UT 84101-1284