Federal Direct Stafford Loans
The 2022-23 interest rate for the subsidized and unsubsidized loan is 4.99%
All Direct Loans are subject to fees of 1.057% that are withheld from the federal government before funds are received from Central College. Fees are deducted from the loan proceeds at the time funds are disbursed.
Subsidized Stafford loans are based on financial need as determined by the FAFSA. The Federal government subsidizes (pays) the interest on the loan while the student is enrolled at least half-time.
Unsubsidized Stafford loans are not based on financial need. Interest will be charged while the student is enrolled and until the loan is paid in full. Students may pay the interest while they are in school by contacting their Direct Loan Servicer. Your loan is serviced by a U.S. Department of Education contractor. Loans are serviced by a contractor once your loan has been disbursed to the student’s account.
- Eligibility is awarded on the financial aid award as determined by the FAFSA.
- Loan is in the student’s name only. Co-signer is not required.
- Table of Loan limits:
Stafford Loan Borrowing Amounts
| Dependent Undergraduate Student | Independent Undergraduate Student | |
| Freshman | $5,500 – Max of $3,500 can be in Subsidized Stafford Loan | $ 9,500 – Max of $3,500 can be in Subsidized Stafford Loan |
| Sophomore | $6,500 – Max of $4,500 can be in Subsidized Stafford Loan | $10,500 – Max of $4,500 can be in Subsidized Stafford Loan |
| Junior & Senior | $7,500 – Max of $5,500 can be in Subsidized Stafford Loan | $12,500 – Max of $5,500 can be in Subsidized Stafford Loan |
For questions regarding your Stafford loans, please email Donna Newendorp or call 641-628-5187.
