DCSIMG

Federal Direct Subsidized Stafford Loan

William D. Ford Federal Direct Subsidized Stafford loans are awarded to students with demonstrated financial need as determined by the information provided on the FAFSA or Pre-Filled FAFSA. Students who meet the need criteria may borrow up to $8,500 annually. The aggregate loan limit is $65,500. The federal government pays the interest on the loan while the student is enrolled at least half-time. The interest rate is fixed at 6.8%. Repayment begins six months after the borrower graduates or is no longer enrolled at least half-time. The loan has a 10-year repayment term. Federal law requires both entrance and exit counseling for this loan.

          Approximate Monthly Federal Direct
               Subsidized Stafford Loan Repayment Schedule

Assume 6.8% Interest Rate

Debt

MonthlPayment

Total Paid

$8,500

$98

$11,797

$17,000

$197

$23,594

$25,500

$295

$35,392

$34,000

$393

$47,189

Assumptions: - 10-year repayment period (120 months)
                                  - No payment incentives