Future Students:


Direct Loan App & Info


Federal Direct Stafford Loan 

Students must take the following steps to receive a federal student loans...

Step 1:  Sign Master Promissory Note:
 Required for all first time borrowers. You must have your FAFSA PIN available to use on the website.

Step 2:  Complete Entrance Counseling:
 Required if you have never had a federal student loan. 



Direct Loans are available for both undergraduate and graduate borrowers. A student must be enrolled in at least a half-time status (six hours for undergraduate; five hours for graduate) in order to receive a Direct Loan. Loan repayment begins six months after graduation or departure from school.

A subsidized Direct Loan is awarded on the basis of financial need, as determined by the results of the FAFSA and other financial aid (such as grants and scholarships) that you receive. You will not be charged interest on the loan while you are in school at least half-time or during grace and deferment periods. The federal government “subsidizes” the interest on these loans.

An unsubsidized Direct Loan is not awarded on the basis of financial need. You will be charged interest on the loan from the time of the first disbursement until it is paid in full. If you allow the interest to accrue (accumulate) while you are in school (or during other periods of nonpayment), it will be capitalized. This means the interest will be added to the original principal amount of your loan, and additional interest will be based on the higher amount. Making interest-only payments while in school will result in a lower amount repaid in the long run.

Loan Amounts

The maximum amount you can borrow each academic year depends on your grade level and dependency status. See the chart for annual and lifetime borrowing limits. The amounts below are the maximum values — you might not be eligible for the maximum annual amounts because of other financial aid that you receive.

Year Dependent Undergraduate Independent Undergraduate Graduate*
First $5500
(Up to $3,500 subsidized)
(Up to $3,500 subsidized)
(Up to $8,500 subsidized)
Second $6,500
(Up to $4,500 subsidized)
(Up to $4,500 subsidized)
Third and beyond $7,500
(Up to $5,500 subsidized)
(Up to $5,500 subsidized)
Aggregate Loan Limites $31,000
(Up to $23,000 subsidized)
(Up to $23,000 subsidized)

(Up to $65,500 subsidized)

How to Apply for a Stafford Loan

The FAFSA is required for both subsidized and unsubsidized Federal Direct Loans. By completing the FAFSA, we will automatically determine your eligibility for subsidized and unsubsidized loans and notify you of your eligibility. We will first process the maximum subsidized eligibility and then unsubsidized.

To complete the loan process, you will need to:

  • Complete Entrance Loan Counseling at studentloans.gov if this is your first student loan.
  • Complete a Master Promissory Note (MPN) at studentloans.gov if this is your first Direct Loan.

Interest Rates

For all Stafford loans first disbursed on or after July 1, 2014, the interest rate is...

Loan Type Interest Rate* Grace
Deferment Repayment

4.66% Fixed for Undergraduates

6 months 6 months You may receive a deferment if you are enrolled at least half-time or for unemployment or economic hardship The 6-month grace period starts the day after you graduate, leave school or drop below half-time. You don't have to begin making payments until your grace period ends.
Unsubsidized 4.66% Fixed for all undergrads  6.21% for grads

Promissory Notes

An electronic loan application will be created and transmitted to the U.S. Department of Education. First-time borrowers through the Direct Loan program will be directed to complete a promissory note. This can be done electronically at studentloans.gov. The promissory note is a legal, binding document whereby you agree to repay the loan.

Changing Loan Amounts

You are encouraged to only borrow needed funds. If the loan approval is more than you desire, you can reduce the amount by calling the Financial Aid Office at 843-661-1190, e-mailing the Financial Aid Office at finasst@fmarion.edu or following the directions provided on your award letter.

If you have questions about our loan process, you may contact our office.


Empowered by Extend, a school software solution from