Wayne State University

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Federal Direct Stafford Loans

Federal Direct Subsidized and Unsubsidized Loans

Federal Direct Stafford loans are fixed-rate loans for students who are attending school at least half time and are the most common and one of the lowest-cost forms of education funding. Federal Loans are either subsidized (the government pays the interest while a student is in school) or unsubsidized (the student pays all the interest, although you can have the payments delayed until after graduation).

To receive a subsidized Stafford Loan, you must be able to demonstrate financial need as determined by filing the FAFSA.

An unsubsidized Stafford loan is not need-based and does not qualify for a federal interest subsidy. Interest starts accruing on this loan at the time of disbursement. With the unsubsidized Stafford loan, you can delay the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. Even though the unsubsidized Stafford Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible.

Wayne State University is a full participant in the Federal Direct Loan Program, which offers many benefits to Wayne State University students, including:

As a full Direct Loan participant, Wayne State University is no longer able to certify Federal Stafford or PLUS loans through private lenders.

To Borrow a Federal Direct Stafford Loan

  1. Check Pipeline to accept all or a portion of your loan awards.
  2. First-time Federal DIrect Subsidized/Unsubsidized loan borrowers:
  3. First-time Federal Direct Subsidized/Unsubsidized loan borrowers:
    • Complete a Federal Direct Loan Master Promissory Note at https://dlenote.ed.gov. 
      • Use your FAFSA PIN to e-sign a loan promissory note: www.PIN.ed.gov. 
      • Select "Wayne State University" as the school you are attending.

  1-2-3 Loan Process Steps 

Eligibility Rules and Loan Limits 

Enrollment Requirement: You must be enrolled at least half-time in order to be eligible for the Federal Stafford Loan. For a JD student, five credit hours is considered half time during the academic year. For an LLM student, four credit hours is considered half time. During the spring/summer semester enrollment a JD student, must be enrolled for 3 credit hours and an LLM student for 1 credit hour to be considered half time. 

 
Half-Time
Full-Time
JD Student
5-9 credits
10+ credits
LLM student
4-7 credits
8+ credits

The annual combined subsidized and unsubsidized maximum is $20,500, no more than $8,500 which may be in subsidized loans. You cannot borrow more than your financial need or the estimated cost of attendance. The annual limits apply to the academic year, which includes Fall, Winter and Summer semesters.

The maximum total Federal Stafford Loans limit at the graduate or professional level, including loans received for undergraduate study is $138,500, no more than $65,500 of which may be in subsidized loans.

Federal Direct Stafford Loan Terms

Interest rates for Federal Direct Stafford Loans for graduate students are fixed at 6.8%. There is a 0.5% origination fee deducted from the loan proceeds by the U.S. Department of Education. This loan fee includes a 1.5% up-front rebate that assumes 12 on-time monthly payments. Repayment benefits include a 0.25% interest rate reduction for electronic payment.

Federal Direct Loan Program: www.direct.ed.gov

Federal Direct Stafford Loan Repayment

Direct Loan Servicing Web Site: www.dl.ed.gov

Federal Direct Stafford Loans have a fixed interest rate of 6.8%.

Subsidized Federal Direct Loan: The federal government pays the interest on the subsidized loan during: (1) your enrollment in school on at least a half time basis, (2) a six-month grace period immediately following your separation from school, and (3) a deferment, which is a temporary, authorized time when your payments may be postponed.

Unsubsidized Federal Direct Loan: "Unsubsidized" means the federal government does not pay the interest on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You may choose either to pay the accumulating interest while you are in school, during the grace period for the principal, and during a deferment of the principal or to have the unpaid, accumulating interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.

Visit our Loan Repayment Web page for additional information on your loan repayment options.