Federal Direct Subsidized and Unsubsidized Stafford Loans

  1. Admissions & Financial Aid
  2. Undergraduate
  3. Financial aid
  4. Student loans
  5. Federal Direct Subsidized and Unsubsidized Stafford Loans

Federal student loans are low-interest loans from the U.S. Department of Education to help undergraduate students pay for college. They offer consumer protections not typically available with private loans, such as income-driven repayment plans, potential forgiveness programs and deferment/forbearance options. Always file the FAFSA and review your aid offer before borrowing.

Undergraduate federal direct loans

Types of Undergraduate Federal Loans

Direct subsidized loans

Need-based loans for eligible undergraduate students. The government pays (subsidizes) the interest while you’re enrolled at least half-time and during certain deferment periods.

Direct unsubsidized loans

Non-need-based loans available to most undergraduate students regardless of financial need. Interest accrues from disbursement, and you can pay it while in school or allow it to capitalize (be added to the principal).

Eligibility
  • File the Free Application for Federal Student Aid (FAFSA) each academic year.
  • Meet Satisfactory Academic Progress (SAP) standards set by Saint Martin's University.
  • Be a U.S. citizen or eligible noncitizen and meet general federal aid requirements.
  • Not be in default on a federal student loan and not owe an overpayment on federal aid.
How to Apply
  1. Complete the FAFSA for the correct aid year.
  2. Respond promptly to any verification or documentation requests from Saint Martin's University.
  3. Review your financial aid offer in your Financial Aid Portal.
  4. Complete the required Master Promissory Note (MPN) and Loan Entrance Counseling documents at studentaid.gov.
  5. Monitor your student account for disbursement timing and any outstanding requirements.
Annual & lifetime aggregate loan limits

Actual limits depend on your class level and dependency status. The table below provides commonly used federal limits for Direct Subsidized/Unsubsidized Loans. Always refer to current federal guidance and your aid offer.

Note: Limits can change with federal law.

YearDependent undergraduate (sub + unsub)Independent undergraduate (sub + unsub)
First-year$5,500 (max $3,500 subsidized)$9,500 (max $3,500 subsidized)
Second-year$6,500 (max $4,500 subsidized)$10,500 (max $4,500 subsidized)
Third & beyond$7,500 (max $5,500 subsidized)$12,500 (max $5,500 subsidized)
Lifetime aggregate$31,000 (max $23,000 subsidized)$57,500 (max $23,000 subsidized)
Loan interest & fees

Federal loan interest rates and fees are set annually by Congress and apply by disbursement date. Your rate is fixed for the life of each loan. Check studentaid.gov for current rates and loan fees before you decide how much to borrow.

Disbursement & refunds

Disbursements

Loans disburse directly to your student account to pay tuition, fees, housing and other direct charges. Aid, including loans, is typically disbursed no sooner than the third week of the semester. Dates will vary by term and are subject to change each year.

Refunds

If your aid exceeds your charges, Saint Martin's University will process a refund according to the schedule set by our Student Financial Services team.

Borrowing smart
  • Borrow only what you need.
  • Consider making small in-school interest payments to reduce capitalization.
  • Use scholarships, grants, work-study and payment plans before additional loans.
Federal loan repayment overview

You’ll repay federal loans to a loan servicer assigned by the Department of Education. Most undergraduate loans have a six-month grace period after you graduate or leave school. You can choose from multiple repayment plans, including income-driven plans that adjust your payment to your income and family size. You can change plans at any time with your servicer.

Stay in touch with your servicer, set up autopay if available, and keep your contact information current. If you face hardship, ask about income-driven repayment, deferment/forbearance or other short-term relief options before you miss payments.

Staying on Track
  • Complete Exit Counseling when you graduate or withdraw.
  • Monitor your loan balances and interest through studentaid.gov.
  • Avoid default—contact your loan servicer early if you anticipate trouble making payments.
  • Consider consolidation only if it aligns with your repayment goals (it may change benefits).
Typical Timelines
  • FAFSA processing: 3–7 days to appear on studentaid.gov. Schools may take additional time to load records.
  • Verification/document review (if selected): Varies. Respond quickly to avoid delays.
  • Loan disbursement: Generally, at the start of each term after eligibility is confirmed.
FAQs

Do I have to accept the full loan amount?

No. You may accept a lower amount or decline a loan. You can request an increase later (subject to eligibility and deadlines).

What if my parent is denied a PLUS Loan?

Dependent students may become eligible for additional Unsubsidized loan amounts if a parent is denied PLUS. Contact our office for details.

Will loans affect my other aid?

We ensure total aid stays within your cost of attendance, but accepting loans may reduce remaining eligibility for other aid types.

Questions? We can help!