Federal Direct Loans
Federal Direct Stafford loans are the most common and one of the lowest-cost forms of education funding.
- Interest rate is fixed
- Available to students attending at least half-time
- Loan fee deducted prior to disbursement
Subsidized Loans: The government pays the interest while you are in school at least half-time and during a six-month grace period. To receive a subsidized loan, you must be able to demonstrate financial need as determined by filing the FAFSA.
Unsubsidized Loans: This loan does not qualify for a federal interest subsidy. The student pays all the interest. You can have the payments delayed until after graduation when the interest will be added to the loan balance, increasing the size and cost of the loan. The unsubsidized Stafford Loan is available to all students regardless of financial need. A FAFSA is required.
Borrowing can be costly. We recommend you consider borrowing only if you have exhausted all other options. Only borrow what you need. Make a budget for yourself to keep your debt within manageable limits.
- Annual Loan Limits
- Lifetime Loan Limits
- Interest Rates
- Loan Fees
- Loan Counseling
- Promissory Notes
- Repayment
- Other Direct Loans
- Undergraduate Grade Level
Annual Loan Amounts
The amount in Direct Loan funds that you are eligible to borrow each academic year is limited by (1) your grade level (2) whether you are a dependent or an independent student, (3) your financial need, and (4) your cost of attendance. You cannot borrow more than your cost of attendance (your budget.)
|
DEPENDENT Student |
Base Amount |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount |
| Freshman | $3,500 | $2,000 | $5,500 |
| Sophomore | $4,500 | $2,000 | $6,500 |
| Junior/Senior | $5,500 | $2,000 | $7,500 |
| Prep Coursework for entry into an Undergraduate Program | $2,625 | 0 | $2,625 |
| Teacher Certification Coursework, Approved Post-Baccalaureate Certificate Program or Prep Coursework for entry into a Graduate/Professional Program | $5,500 | 0 | $5,500 |
|
INDEPENDENT Student
(and Dependent Students Whose Parents are Denied a PLUS Loan)
|
Base Amount |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount |
| Freshman | $3,500 | $6,000 | $9,500 |
| Sophomore | $4,500 | $6,000 | $10,500 |
| Junior/Senior | $5,500 | $7,000 | $12,500 |
| Prep Coursework for entry into an Undergraduate Program | $2,625 | $6,000 | $8,625 |
| Teacher Certification Coursework, Approved Post-Baccalaureate Certificate Program or Prep Coursework for entry into a Graduate/Professional Program | $5,500 | $7,000 | $12,500 |
Undergraduate Grade Level
Grade level is determined according to the number of credits that an undergraduate student has completed.
Freshman: 0 to 28.99 credits, inclusive
Sophomore: 29 to 55.99 credits, inclusive
Junior: 56 to 87.99 credits, inclusive
Senior: 88 credits and above
Graduate & Professional Students
Important note for the 2012-13 academic year: Graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans beginning with loans for periods of enrollment on or after July 1, 2012. The annual Stafford loan limit for graduate and professional students remains unchanged.
| Graduate Students |
Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount |
| $8,500 | $12,000 | $20,500 |
| Graduate Students in Certain Health Professions |
Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount |
| Doctor of Pharmacy, Doctor of Clinical Psychology | $8,500 | $12,000 plus $12,500-$16,667 depending on the length of the program academic year | $33,000-$37,167 depending on the length of the program academic year |
| Medical Students |
Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount |
| Allopathic Medicine | $8,500 | $12,000 plus $20,000-$26,667 depending on the length of the program academic year | $40,500-$47,167 depending on the length of the program academic year |
Lifetime Aggregate Loan Limits
| Student Level | Lifetime Maximum Loan Limit |
| Undergraduate Dependent Students (including second baccalaureate, teacher certification and post-baccalaureate certificate programs) | $31,000 (of which no more than $23,000 can be subsidized loans) |
| Undergraduate Independent Students (including second baccalaureate, teacher certification and post-baccalaureate certificate programs) | $57,500 (of which no more than $23,000 can be subsidized loans) |
| Graduate/Professional Students | $138,500 including undergraduate loans (of which no more than $65,500 can be subsidized loans) |
| Allopathic Medicine and other graduate students in certain health professions | $224,000 including undergraduate loans (of which no more than $65,500 can be subsidized) |
Interest Rates
| UNDERGRADUATE STUDENTS - First disbursement of a loan: |
Interest Rate on the Unpaid Balance of the Subsidized Loan |
Interest Rate on the Unsubsidized Loan Balance | |||
| Between July 1, 2010 and July 1, 2011 | 4.5 percent | 6.8 percent | |||
| Between July 1, 2011 and July 1, 2012 | 3.4 percent | 6.8 percent |
| GRADUATE STUDENTS | Interest rate |
| 6.8 percent |
Loan Fees
A loan fee of 0.5% will be deducted from the loan proceeds prior to disbursement. Effective July 1, 2012, the loan fee will increase to 1%.
Loan Entrance Counseling
Entrance loan counseling is required for first-time Federal Loan borrowers. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. Loan counseling must be completed before you can receive loan funds.
Subsidized and Unsubsidized (Stafford) Loan Entrance Counseling
Loan Promissory Note
As a Federal Direct Loan borrower, you must sign a Master Promissory Note (MPN) before your loan can be disbursed. The Federal Direct Loan MPN is valid for 10 years. You have to sign a Loan MPN only once while you are enrolled at Wayne State University.
All students who wish to borrow Federal Subsidized and Unsubsidized Loans will be required to complete a Federal Direct Loan Master Promissory Note. Complete a Direct Loan Master Promissory Note at https://studentloans.gov.
- You will need the PIN number you used to file your FAFSA. If you do not have your PIN, see www.PIN.ed.gov for more information.
Student Loan Repayment
Student loan repayment is important to consider when making decisions on loan borrowing.
6.8% Federal Direct Unsubsidized Stafford Loan Repayment Chart:
| Amount Borrowed | Monthly Payment | Total Interest Charges | Total Amount Repaid |
| $2,500 | $50 | $465 | $2,965 |
| $5,000 | $58 | $1,030 | $6,939 |
| $7,500 | $87 | $2,909 | $10,409 |
| $10,000 | $116 | $3,879 | $13,879 |
| $12,500 | $153 | $4,849 | $17,349 |
| $15,000 | $173 | $5,818 | $20,818 |
| $17,500 | $202 | $6,788 | $24,288 |
Other Federal Direct Loans
Click here for information on the Federal Direct Parent PLUS Loan
Click here for information on the Federal Direct Graduate PLUS Loan