Financial Aid Office
Financial Aid Office
600 West Walnut Street
Danville, KY 40422
Federal Direct Subsidized Stafford Loan
The Federal Direct Subsidized Stafford Loan is a loan and must be repaid after graduation or withdrawal. The government will pay the interest while you are enrolled in college at least half time. The 2013-2014 interest rate is 3.86%. A 1.051% origination fee will be deducted from each loan disbursement. Repayment begins six months after graduation. However, interest will accrue during the grace period on new loans disbursed after 7-1-12. Payment deferment is available for graduate school.
A new federal regulation places a limit on Direct Subsidized Loan eligibility for first time borrowers on or after July 1, 2013. There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you many not receive Direct Subsidized Loans for more than 150% of the published length of your program. Here at Centre College, you would have six years of eligibility to receive Direct Subsidized Stafford Loans. If you exceed the six years and are still in the program, you would no longer be eligible for Subsidized Loans and the government would stop paying the interest on the Subsidized Loans you received previously.
Maximum loan amounts: freshman $3,500; sophomore $4,500; junior $5,500; senior $5,500. In May 2008, Congress made available a $2,000 supplemental Unsubsidized Stafford Loan in addition to the previous loan amounts listed.
Beginning July 2010, all Stafford Loan dollars come from the federal government through the William D. Ford Federal Direct Loan Program.
The student borrower must electronically sign a Master Promissory Note (MPN) by visiting www.StudentLoans.gov and by using the federally issued US Department of Education PIN number. Upperclassmen who borrowed a Stafford Loan in prior years are not required to sign a new promissory note.
Centre’s Student Financial Planning Office will certify that you are eligible for the Stafford Loan during the summer after you accept the loan.
All first time Stafford borrowers must complete entrance loan counseling prior to disbursement. Please go to www.StudentLoans.gov.
Stafford fall disbursements for first time freshmen occur in mid-September.