Federal Direct Stafford Loans are available to most eligible borrowers who apply for financial aid.

qualification

To be eligible for the Federal Direct Stafford Loan, you must:

• Be enrolled at least half-time:
  • Undergraduate students must register for six (6) or more units.
  • Graduate students must register for four (4) or more units.
  • Doctoral students must register for three (3) or more units.
• Be enrolled in the number of units indicated in your Financial Aid Summary; and
• Maintain Satisfactory Academic Progress toward your degree objective.

how to apply

To receive a Federal Stafford Loan, you must first apply for financial aid online at www.fafsa.gov. If you have not yet applied, do so as soon as possible, even if the priority date has already passed.

If you have applied for financial aid, and your Award Summary includes the Federal Direct Stafford Loan, please follow the Next Steps indicated below.

Receiving Your Funds

New USC Students
Complete ALL four steps to obtain your Stafford Loan:

• Complete the Federal Direct Stafford Loan Request form online by logging into My Financial Aid & Documents.  You will find the Federal Direct Stafford Loan Request Form in the Document Library.  
  • Once the Financial Aid Office processes your loan and notifies the Department of Education, we will e-mail you confirmation.
    
• Sign your Master Promissory Note (MPN) online at www.studentloans.gov.* You will need the Personal Identification Number (PIN) issued to you by the Department of Education when you completed your FAFSA. If you have forgotten your PIN, you can retrieve it through www.studentloans.gov. You will be able to sign your MPN after the Financial Aid Office processes your loan and notifies the Department of Education of your eligibility. You will receive an e-mail reminder at that time.
  • *You will not be required to complete a new MPN if you previously borrowed a Federal Direct Stafford Loan at another school, and your existing MPN is not more than 10 years old.
• First-time undergraduate and graduate borrowers at USC, as well as new graduate students who borrowed at USC as an undergraduate student, must complete entrance loan counseling online at www.studentloans.gov.
• First-time undergraduate borrowers must attend an in-person entrance loan counseling session. For a schedule of sessions, please refer to the Mandatory In-Person Entrance Loan Counseling page.

Continuing USC Students

• USC will process your Federal Stafford Loan through the Federal Direct Loan Program for your maximum eligibility if you:
  • Are a continuing USC student who borrowed your maximum Federal Stafford Loan eligibility in the previous academic year; and
  • Submit a Free Application for Federal Student Aid (FAFSA) for the current year; and
  • Meet all eligibility requirements.
    
• Refer to “New USC Students” above, complete Steps 1 and 2 and any other applicable steps, if you:
  • Are a continuing USC student who borrowed less than your maximum Federal Stafford Loan eligibility for the 2011-2012 academic year;
  • Are a continuing student who wishes to borrow less than your maximum eligibility for the 2011-2012 academic year; or
  • Are a first-time borrower at USC.

general information

Generally, one-half your loan will be disbursed at the start of each semester.

Federal Origination Fees will be deducted from each disbursement:

• 1.0 percent for all loans made on or after July 1, 2010

The ten-year repayment period begins six (6) months after you graduate, withdraw or drop below half-time enrollment.

For more information, please refer to the Student Loan Advisory.

Interest rates and Subsidized vs. Unsubsidized Federal Direct Stafford Loans

Rates are fixed depending on the student's enrollment status, the type of loan and the date of first disbursement.

Undergraduate Subsidized Federal Direct Stafford Loans:

First disbursed July 1, 2011 - June 30, 2012	3.4%
First disbursed on or after July 1, 2012	6.8%

Undergraduate Unsubsidized Federal Direct Stafford Loans:

First disbursed after July 1, 2006

6.8%

All Graduate Subsidized* and Unsubsidized Federal Direct Stafford Loans

First disbursed after July 1, 2006

6.8%

*Changes in federal law prohibit Graduate and Professional Students from receiving Subsidized Federal Direct Stafford Loans for enrollment periods beginning on or after July 1, 2012.

“Subsidized” means the federal government pays the interest that accrues on your loan while you are enrolled at least half-time, or during a six-month grace period after you graduate, withdraw or drop to less than half-time enrollment. Eligibility for Subsidized Stafford Loans is based on financial need.

After the six-month grace period, you must begin repaying your loan, and you become responsible for the interest.

Note: For Subsidized Stafford Loans first disbursed after July 1, 2012, interest will accrue from the date of the student’s graduation or withdrawal from school. Although payments will not be expected during the six-month grace period, the federal government will no longer subsidize the interest accrual during grace period.

“Unsubsidized” means you are responsible for paying the interest from the time the loan is disbursed. While you are enrolled in school at least half-time, you may defer interest payments and capitalize the interest.

“Capitalization” is the process by which interest is added to the loan balance, increasing the loan's size and cost. To reduce the cost of borrowing, consider making interest payments while you are in school.

Annual Loan Limits for Federal Stafford Loans

The amounts students may borrow annually are based on program of study, academic level and federal dependency status. Please note that Subsidized Federal Direct Stafford Loans are limited by your financial need. Unsubsidized Federal Direct Stafford Loans are limited by your Cost of Attendance, less other aid received.

	Base Amount	Additional Unsubsidized Amount
	All Students	Dependent Undergraduates (except student whose parents cannot borrow PLUS loans)	Independent Students and Dependent Students whose parents cannot borrow PLUS loans
First-Year Undergraduate	$3,500	$2,000	$6,000
Second-Year Undergraduate	$4,500	$2,000	$6,000
Third-Year and beyond Undergraduate	$5,500	$2,000	$7,000
Graduate Preparatory (i.e., Post-Bacc Pre-Med)	$5,500	n/a	$7,000
Graduate/ Professional	n/a*	n/a	$20,500
Master of Public Health, Master of Health Administration	n/a*	n/a	$33,000
Pharmacy Students (PHARMD)	n/a*	n/a	$33,000
First-Year Medical Students (MD)	n/a*	n/a	$42,722
Second- and Third- Year Medical Students (MD)	n/a*	n/a	$47,167
Fourth-Year Medical Students (MD)	n/a*	n/a	$42,722
First-, Second-, and Third-Year Dental Students (DDS)	n/a*	n/a	$47,167
Forth-Year Dental Students (DDS)	n/a*	n/a	$40,500
International Dental Students (DDS)	n/a*	n/a	$47,167

*Changes in federal law prohibit Graduate and Professional Students from receiving Subsidized Federal Direct Stafford Loans for enrollment periods beginning on or after July 1, 2012.

Aggregate Loan Limits for federal Stafford Loans

The figures in the table below are the total loan amounts students may borrow for their entire academic careers, based on academic level and federal dependency status.

Dependency and Program of Study	Subsidized Stafford	Maximum Subsidized and Unsubsidized Stafford
Dependent Undergraduates	$23,000	$31,000
Independent Undergraduates	$23,000	$57,500
Graduate/Professional Students	$65,500	$138,500
Certain Health Profession Students (MD, DDS, MHA, MPH)	$65,500	$224,000