Office of Financial Aid

Federal Direct Stafford Loans

The Federal Direct Stafford loan program allows students to borrow low-cost educational loans from the federal government. To be eligible for a Direct Stafford loan, students must be enrolled at least 6 hours (5 hours for the Graduate College and School of Public Health). Repayment of these loans begins 6 months after students leave school or fall below half time enrollment. There are 2 types of Federal Direct Stafford loans: subsidized and unsubsidized. For detailed information about Direct Stafford loans, visit the U.S. Department of Education.

Subsidized

Subsidized Direct Stafford loans are need based loans. They are subsidized in that the federal government pays the interest on the loan until repayment begins.

Unsubsidized

Unsubsidized Direct Stafford loans are not need based. Interest begins accruing from the date of first disbursement. You can choose to pay the interest quarterly while in school, or you can allow it to accumulate and be capitalized when repayment begins.

Interest Rates

There are a variety of interest rates for Direct Stafford loans, depending on date of disbursement, subsidized/unsubsidized, undergraduate/graduate, fixed/variable rates. The rates can range from around 3%-8%. See complete interest rate information here.

Origination Fees & Rebates

There is a 2% origination fee for Direct Stafford loans. However, there is a 1.5% rebate added on to each Direct Loan disbursement. The result is that your net loan amount will be 0.5% less than your gross loan amount. So, if you borrow $1,000 in Direct Stafford loans in 2009-10, you will receive a net disbursement of $995.

Master Promissory Note (MPN)

First time UIC borrowers of Stafford loans must sign a Master Promissory Note (MPN) agreeing to pay back the loan to the federal government, with interest, according to the terms of the program. You must complete the MPN online here.

UIC Financial Counselor™ Requirement

Every year that you borrow a loan at UIC, you must complete a UIC Financial Counselor™ session. If you do not complete this online debt management tutorial, your grades, transcripts, and subsequent class registration will be put on hold.

Very Important: Please be aware that every first borrower at UIC must complete Financial Counselor before we are able to disburse loan funds to their student account. So please make sure to complete prior to the start of the semester for which you are borrowing your first loan at UIC, as there are no exceptions.

Annual and Aggregate Limits

Federal regulations limit the amount of Stafford loans you can borrow each academic year and over your entire student career. Limits are listed in the chart below. Please note that other financial aid resources and cost of attendance restrictions might prevent you from borrowing up to the annual limit in any given year.

Annual Limits for Stafford Loans

	Subsidized	Combined Annual Maximum (subsidized & unsubsidized)
Dependent
Undergraduates
Freshman (1-29 credit hours)	$3,500	$5,500
Sophomore (30-59 credit hours)	$4,500	$6,500
Junior/Senior (60+ hours)	$5,500	$7,500

Independent Undergraduates
Freshman (1-29 credit hours)	$3,500	$9,500
Sophomore (30-59 credit hours)	$4,500	$10,500
Junior/Senior (60+ hours)	$5,500	$12,500

Graduate & Professional Students
Graduate	$8,500	$20,500
Pharmacy, Master of Public Health	$8,500	$33,000
Dentistry (DDS & IDP only)	$8,500	$40,500

Aggregate Limits for Stafford Loans

	Subsidized	Combined Annual Maximum (subsidized & unsubsidized)
Undergraduates
Dependent	$23,000	$31,000
Independent	$23,000	$57,500

Graduate & Professional Students
Graduate	$65,500	$138,500
Pharmacy, Master of Public Health & Dentistry DDS & IDP	$65,500	$224,000

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