This website uses cookies to ensure site visitors get the best experience on our website. By continuing to use this site, you accept our use of cookies and Privacy Statement. To find out more, please visit Southern University's Privacy Statement.

I agree

Federal Stafford Loans

Direct Stafford Loans

 

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.

Classification

(Year in College)

Dependent Students (except students whose parents are unable to obtain PLUS Loans)

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

First-Year Undergraduate Annual Loan Limit

$5,500—No more than $3,500 of this amount may be in subsidized loans.

$9,500—No more than $3,500 of this amount may be in subsidized loans.

Second-Year Undergraduate Annual Loan Limit

$6,500—No more than $4,500 of this amount may be in subsidized loans.

$10,500—No more than $4,500 of this amount may be in subsidized loans.

Third-Year and Beyond  Undergraduate Annual Loan Limit

$7,500—No more than $5,500 of this amount may be in subsidized loans.

$12,500—No more than $5,500 of this amount may be in subsidized loans.

Graduate or Professional Students Annual Loan Limit

Not Applicable (all graduate and professional students are considered independent)

$20,500 (unsubsidized only)

Subsidized and Unsubsidized Aggregate Loan Limit

$31,000—No more than $23,000 of this amount may be in subsidized loans.

$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

$138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

 

NOTE: The total of a Federal Direct Subsidized Loan award and a Federal Direct Unsubsidized Stafford Loan award may not exceed the above annual award limits.

Federal Direct Subsidized Loan Programs

This need-based loan program is available to students who are enrolled for at least half-time (6 hours for undergraduates and Post Baccalaureate students) each semester at the time of disbursing of funds and have a gross need.

The U.S. Department of Education will deduct an origination fee of up to 3% and up to 1 % default fee of the principal amount of the loan from each disbursement received by a student. These fees are used to offset the costs of default claims and special allowances.

A first year, first time Federal Direct Loan borrower cannot receive a Federal Direct Loan disbursement(s) until 30 days after the first day of class.

Loans of this type are repaid over a period of 10 years, excluding periods of deferment and/or forbearance.

For Federal Subsidized Loans, the interest does not accrue while the student is enrolled at least half time (6 hours). Repayment of principal and interest commences 6 months after the day on which the student ceases to be enrolled at least half-time (6 hours).

 

Federal Direct Unsubsidized Stafford Loan Program

This loan program is available to all students, regardless of family income, who are enrolled at least half-time (6 hours for undergraduates and Post Baccalaureate students and 5 hours for Graduate Students) credit hours each semester at the time of awarding and disbursing of funds. Students borrow from the U.S. Department of Education and loan limits are the same as for the Federal Direct Stafford Loan Program.

The U. S. Department of Education will deduct an origination fee of up to 3% and up to 1% default fee of the principal amount of the loan from each disbursement received by a student. These fees are used to offset the cost of default claims and special allowances.

A first year, first time Federal Direct Loan borrower cannot receive a Federal Direct Loan disbursement(s) until 30 days after the first day of class.

Loans of this type are repaid over a period of 10 years, excluding periods of deferment and/or forbearance.

Students must pay interest during in-school, grace and deferments. These interest payments may be made monthly, quarterly, or be added to the principal amount of the loan (i.e. Capitalized). Repayment of principal commences 6 months after the month in which the student ceases to be enrolled at least half-time.

 

***** Direct Student Loan Changes Effective July 1, 2026*****

 

Direct Unsubsidized Loan limits changed

  • Graduate student Direct Unsubsidized Loan annual limit unchanged ($20,500); new aggregate limit of $100,000 (not including undergraduate loans). The previous aggregate limit was $138,500, including undergraduate loans.
  • New professional student Direct Unsubsidized annual limit of $50,000; new aggregate limit of $200,000.
  • Additional Direct Unsubsidized Loan limits for certain health professions programs have been eliminated.

All Students

  • New lifetime maximum of $257,500 for all federal student loans combined, excluding PLUS Loans.
  • New ability for institutions to impose a lower loan limit by program of study, creating an opportunity to address high loan default rates or high debt programs.
  • New requirement for institutions to adjust the annual loan limit for students enrolled less than full-time. If enrollment is less than full-time, your loan eligibility (annual amount) will be prorated (reduced).
    • Undergraduate students must enroll and complete a minimum of 12 hours each semester. If the student withdraws or drops course(s), their loans will be prorated.
    • A graduate student must enroll and complete a minimum of 9 hours each semester. If the student withdraws or drops course(s), their loans will be prorated.

What is the current interest rate?

For Direct Subsidized and Direct Unsubsidized Undergradute Loans first disbursed on or after July 1, 2025 and before July 1, 2026,  the interest rate is 6.39%.

 

For Direct Unsubsidized Graduate Loans disbursed on or after July 1, 2025 and before July 1, 2026, the interest rate is to 7.94%.

 

These are fixed interest rates for the life of the loan.

 

Other than interest, is there a charge for this loan?

Yes, there is a loan fee on all Direct Subsidized and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as shown in the chart below.

               Loan Fees for Direct Subsidized 

                                   and

                       Unsubsidized Loans

First Disbursement Date

Loan Fee

On or after Oct. 1, 2019, and before Oct. 1, 2020

1.059%

On or after Oct. 1, 2020

1.057%

 

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

 

For additional information please contact Ms. Princechelle Griffin or Keiona Joseph (Loan Counselors) 225-771-2957 or 225-771-2642 or via email princechelle.grif@sus.edu or keiona.joseph@sus.edu .

 

 

 

Virtual Advisor