Federal Direct Loan

Types

• Subsidized (need based)
  - Loan principal is deferred and the government pays the interest on the loan while you are enrolled at least half-time.
• Unsubsidized (non-need based)
   - Loan principal may be deferred but interest accrues. If you choose to defer interest, it will be added to the pricipal of the loan.

Interest Rate & Repayment

• 6.80% interest for loans disbursed after July 1, 2007. 5.6% for subsidized loans after July 1, 2009. Unsusidized loans will still be 6.80%
• Fixed interest rate
• Standard ten-year repayment begins six months after graduation, or ceasing to be enrolled at least half-time. Other repayment options (include income contingent) may be available through the servicing agent.
• Deferrments are granted while you are in college and for graduate or professional study of for economic hardship  as defined by the Department of Education.

Maximun Loan Amounts

• First Year: $3,500
• Second Year: $4,500
• Junior: $5,500
• Senior: $5,500
• Graduate Students: $20,500

As of July 1, 2008, students are eligible to request an additional $2,000 of unsubsidized Direct loan.

If a parent is denied the Direct PLUS loan, a student is eligible to borrow additional unsubsidized Direct loan: $4,000 first and sophomore years; $5,000 junior and senior years.

In order to obtain either type of Stafford Loan, a completed FAFSA (Free Application for Federal Student Aid) must be on file in the Financial Aid Office.

STAFFORD LOAN APPLICATION PROCESS

Step 1 – Complete your financial aid documents. A FAFSA can be completed online at www.fafsa.ed.gov. Trinity College’s federal school code is 001414. Please contact The Financial Aid Office in writing (email) to request a Stafford Loan and inquire if additional documents are needed.

Step 2 – Wait for your financial aid award.  Please make sure that all of your financial aid documents have been received by the Financial Aid Office.  If they have not, your award cannot be completed. You can check the status of your award and documents on the Financial Aid Office’s Trinity webpage by using your Trinity ID number and the last four digits of your Social Security number.

Step 3 – Decide if you wish to borrow a Stafford Loan.  If a Stafford Loan is part of your financial aid award and you do not want the loan, you must submit a Declined Aid Form to the Financial Aid Office indicating you decline the loan.  Otherwise, the loan will be accepted and remain as part of your award.

Step 4 – Complete your loan documents. All borrowers will need to sign a Direct Master Promissory Note (MPN) online at www.dlenote.ed.gov

Step 5 – Stafford Loan Disbursement.  All first time borrowers will be reqired to complete Loan Entrance Counseling online at www.dl.ed.gov/counseling