Direct Stafford Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education.  Eligible students borrow directly from the U.S. Department of Education. 

Direct Stafford Loans include the following types of loans:

Direct Subsidized Loans-Direct Subsidized Loans are for students with financial need.  Your school will review the results of your FAFSA and determine the amount you can borrow.  You are not charged interest while you're in school at least half-time and during grace periods and deferment periods.

Direct Unsubsidized Loans-You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan.  Like subsidized loans, your school will determine the amount you can borrow.  Interest accrues on an unsubsidized loan from the time it first disburses.  You can pay the interest while you  are in school and during the grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan).  If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount. 

How do I apply for a Direct Loan?

As with all federal student aid, you must complete the FAFSA and put in SNU's School Code: 003149.

Additionally, if it is your first time to get a Direct Loan, you will need to fill out a Master Promissory Note and complete Online Loan Entrance Counseling.  The Master Promissory Note or MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the Department.  It also explains the terms and conditions of your loan.  In most cases, one MPN can be used for loans that you receive over several years of study.  If you previously signed an MPN to receive a FEEL Program loan, you will need to sign a new MPN for a Direct Loan. 

Furthermore, you must also complete Online Loan Entrance Counseling.  All student borrows are required to complete Entrance Counseling if you have not previously received a student loan.  You must complete this before you can receive the first disbursement of your loan.  This helps you to understand your responsibilities regarding your loan.  Please go to www.studentloans.gov to complete the online loan counseling and MPN.