Federal Direct Stafford Loan

Loans are available to undergraduate students enrolled at least half time in a degree or certificate program. The Federal Direct Stafford Loan program enables students to borrow from, and repay loans directly to, the U.S. Department of Education through its servicing centers.

There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized. Subsidized loan amounts are based on federal financial need, grade level, and cost of attendance. The federal government pays the interest on a subsidized student loan during: in-school status, authorized deferment periods, and, the grace period. However, for loans first disbursed between July 1, 2012 and July 1, 2014, the student will be responsible for the interested during grace periods. The student is responsible for paying the interest on an unsubsidized student loan during all periods. During this time, students may either pay the accumulating interest or capitalize the interest. Capitalization means the unpaid interest is added to the principal balance of the loan.

Interest rates for Federal Direct Subsidized and Unsubsidized Stafford Loans for undergraduates during 2013-2014 is a fixed 3.86%. There is a 1.051% origination fee deducted from the proceeds of the loan. Loan funds are disbursed directly to Suffolk University in equal amounts over each term of enrollment for the academic year. There is a six-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status.

Maximum Annual Loan Limits

Grade Level

Dependent Student

Independent Student


Sub* + Unsub = Total

Sub* + Unsub = Total


$3500 + $2000 = $5500

$3500 + $6000 = $9500


$4500 + $2000 = $6500

$4500 + $6000 = $10500


$5550 + $2000 = $7500

$5500 + $7000 = $12500


$5500 + $2000 = $7500

$5500 + $7000 = $12500

*The subsidized amounts listed above are awarded based on financial need. If the student does not have financial need, this amount will be replaced with an unsubsidized loan. The minimum amount we will process in a Direct Subsidized Loan is $200.

Maximum Aggregate Loan Limits


$31,000 - with a subsidized maximum of $23,000


$57,500 - with a subsidized maximum of $23,000

Deferment, Repayment, and Consolidation

Federal Direct Stafford Loan borrowers can visit the Department of Education’s Direct Loans Online site for general account information, repayment options, and monthly payment calculators, as well as downloadable deferment forms. This site also links to the Direct Loan Consolidation and National Student Loan Data System (NSLDS) websites.

To access most of the above features, you will need to use your Department of Education PIN (Personal Identification Number). PIN’s are distributed to students when they file the FAFSA. If you did not receive a PIN or can’t remember yours, you can obtain a new one at the same site.

Remember, it is the student’s responsibility to obtain all deferment information and file the required forms with the appropriate office or agency.

Entrance/Exit Counseling for Stafford Borrowers

The Office of Financial Aid is required by law to provide Entrance and Exit Loan Counseling for Federal Stafford Loan borrowers. If you are a new borrower, entrance counseling must be completed before loan proceeds can be credited to your tuition account. If you withdraw from the University, take a leave of absence, or graduate, you must complete exit counseling. Entrance and exit counseling are conducted at the Office of Financial Aid. You may also complete either your entrance or exit counseling online.