Federal Direct Unsubsidized Stafford Loans
The Federal Direct Unsubsidized Stafford Loan program allows graduate students to borrow up to $20,500 each academic year or up to the cost of attendance less other resources, whichever is less. The current interest rate is fixed at 6.6 percent. An origination fee of 1.066 percent is deducted before the loan is disbursed. New rates are determined each academic year and are announced in June. One-third of the total loan for the academic year is applied to your student account in each semester, generally a few weeks after classes begin. Repayment begins six months after graduation or after you drop below half-time enrollment. Please note, however, that this loan accrues interest while you are enrolled and during the grace period, and you are responsible for these interest charges. You may either pay the interest while enrolled or defer it; in the latter case, interest is added to the principal when repayment begins.
First-time recipients of a Stafford Loan must complete loan counseling to learn about rights and responsibilities as borrowers. Counseling may be completed online (studentloans.gov). Those without web access can complete loan counseling upon arriving on campus. No loan funds are disbursed until this requirement is met. Failure to complete loan counseling may result in the cancellation of your loan.
Graduate and professional study students have a Direct Stafford Aggregate limit of $138,500, no more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Federal Direct Student Loans and the Master Promissory Note
New student borrowers must complete the on-line Master Promissory Note (MPN) and Entrance Interview at https://studentloans.gov before Federal Direct Student Loan funds will be credited to the student’s tuition account. After the electronic MPN and Entrance Interview notifications have been received by the College from the federal website, the net amount of the loan will be credited to the student’s account.
Stonehill must have positive affirmation from a student that he/she wishes to borrow a loan. Therefore, we will not process a loan, under any circumstances, if the student has not accepted that loan through myHill web portal.
Once a Master Promissory Note has been completed, a Federal Direct Student Loan can be processed for each subsequent year in which a FAFSA or Renewal FAFSA is filed, by accepting the loan on myHill when responding to the annual financial aid notification. Anyone who does not wish to borrow in any given year (or wishes to borrow less than the eligible amount) must indicate this by notifying Student Financial Services by e-mail at firstname.lastname@example.org or by making that change on-line through the College’s web portal, myHill. Declined student loans cannot be replaced with gift aid.