- Am I eligible for a Federal Direct Stafford Loan?
To be eligible for a Stafford loan, you must satisfy a number of requirements, including (but not limited to):
- Be enrolled at least half-time
- Meet Satisfactory Academic Progress requirements as defined by federal regulatory mandates and institutional policy
- Be registered with the Selective Service (males only)
- Be a U.S. citizen, national, or eligible non-citizen
- What kinds of Direct Stafford Loans are available?
Direct (Stafford) Subsidized loans are need-based according to an applicant's financial need, as determined by the Federal Processer based on the FAFSA reported information.
The federal government pays the interest on a Direct (Stafford) Subsidized loan as long as half-time enrollment is maintained. Thereafter, payment on the loan interest becomes the borrower's responsibility.
Direct (Stafford) Unsubsidized loans are not need-based. Loan interest begins accumulating at the time of disbursement of funds to a borrower. Interest payments can be made while half-time enrollment is active or can be deferred until graduation. However, if deferment is activated, the interest that accrues while a borrower remains in-school will capitalize (added to the principal of the loan balance) when repayment begins.
- As a first time borrower at UNT, how do I accept a Direct Stafford Loan?
Notifications about loan awards are sent to students by letter. Loan borrowers can Accept or Decline a Federal Direct (Stafford) Loan award. If a loan award is ‘Accepted' via myUNT, the award record will be electronically transmitted to the U.S. Department of Education. A new “To Do List” item will appear on your myUNT indicating the online Entrance Counseling requirements, which can be finalized at your convenience. The PIN assigned to applicants when the FAFSA was signed must be used to begin the Entrance Counseling session. The University of North Texas must be selected as an institution of choice to receive the results of the session. Loan funds will not disburse (pay) to student accounts until completion of the Master Promissory Note (MPN) and/or the Entrance Counseling requirement, which details the terms and conditions of the loan.
Note for Transfer Students: Previous Stafford Loan borrowers whose funding was provided through the Direct Loan Program will not need to complete a new MPN. Borrowers whose loans were financed by a lender or other lender-based entities must still complete a new MPN for the Direct Loan Program.
- As a continuing borrower at UNT, how do I apply for a Direct Stafford Loan?
Completing the Free Application for Federal Student Aid (FAFSA) is the starting point. Notification about loan awards will be sent by letter and can be viewed on the student's myUNT. If a Direct (Stafford) Loan award is "Accepted", UNT will electronically transmit the loan award record to the U.S. Department of Education.
- How much can I borrow?
Federal Direct Stafford Ford Loan maximums
Annual limits per year of study |
Dependent undergraduates |
| Year |
Max. (subsidized and unsubsidized) |
| First year |
$5,500 — no more than $3,500 of this amount may be subsidized |
| Second year |
$6,500 — no more than $4,500 of this amount may be subsidized |
| Third year and beyond |
$7,500 — no more than $5,500 of this amount may be subsidized |
Independent undergraduates
(and dependent undergraduates whose parents are unable to borrow under the PLUS Loan Program) |
| Year |
Max. (subsidized and unsubsidized) |
| First year |
$9,500 — no more than $3,500 of this amount may be subsidized |
| Second year |
$10,500 — no more than $4,500 of this amount may be subsidized |
| Third year and beyond |
$12,500 — no more than $5,500 of this amount may be subsidized |
| Graduate and professional students |
| Year |
Max. (subsidized and unsubsidized) |
| For any year of study |
$20,500 — no more than $8,500 of this amount may be subsidized |
Aggregate limits
Maximum amounts over academic career |
| Type of student |
Max. (subsidized and unsubsidized) |
| Dependent undergraduates |
$31,000 — no more than $23,000 of this amount may be subsidized |
| Independent undergraduates (and dependent undergraduates whose parents are unable to borrow under the PLUS Loan Program) |
$57,500 — no more than $23,000 of this amount may be subsidized |
| Graduate and professional students |
$138,500 — no more than $65,500 of this amount may be subsidized |
- When will I receive my Federal Direct Stafford Loan funds?
Loan funds will not disburse (pay) until all documentation requested by UNT has been submitted and a student's aid application is considered to be "complete". Any item that requires further action to be taken by a student or parent prior to disbursement will be noted on a student's myUNT "To Do List".
If a student's file is complete, disbursements can be made as early as ten days prior to the first day of a fall or spring fee payment (August/January) period. However, disbursements can occur throughout an enrollment term upon completion of a student's file.
- Can I borrow a Federal Direct Stafford Loan for Summer?
No. All Summer 20009 loan awards will continue to be processed through the lender-based Federal Family Educational Loan Program (FFELP).
- What is required when I leave UNT?
Each Federal Direct (Stafford) Loan borrower at the University North Texas is required to complete Student Exit Counseling shortly before completing a degree, leaving UNT (i.e., withdrawing, graduation) or ceasing half-time enrollment.
To complete this requirement, go to https://www.dl.ed.gov/borrower/CounselingSessions.do.
- Are there any fees?
In addition to interest, loan fees are associated with borrowing a Federal Direct (Stafford) Loan. The U.S. Department of Education charges a 1.5% gross fee, and then gives students an up-front rebate of 1%. In actuality, borrowers are charged a net fee of .5% of the total amount borrowed each year. This fee is deducted from the loan by the Department of Education before the proceeds are credited to a student’s account.
IMPORTANT NOTE ABOUT THE UP-FRONT REBATE: The up-front rebate reduces the fee paid at the point of loan origination. After entering repayment, if the first 12 monthly payments are not made consecutively and on time (as determined by Direct Loan servicing), then the Department of Education will add the 1% rebate back to the loan balance.
