Step 1—Sign and return your Financial Aid Award. You may indicate any decreases in the amount you want to borrow on your Award.

Step 2—All first time borrowers, and those new to the Direct Loan program, will need to complete a Master Promissory Note.

Step 3—All first time borrowers, and those new to the Direct Loan program, will need to complete Student Loan Entrance Counseling. Choose the Stafford Loan option. You are required to complete Entrance Counseling before funds can be disbursed to your student account.

The Federal Direct Stafford Loan Program is a loan program with funds being provided directly from the Department of Education. Beginning July 1, 2006, the interest rate is fixed at 6.8% for Unsubsidized Loans. Subsidized Stafford Loans have a fixed interest rate of 4.5% for the 2010-2011 academic year. Origination and guarantee fees of up to 1.0 percent may be deducted from the loan amount you were awarded for the 2010-2011 academic year.

The Federal Direct Stafford Loan comes in two forms:

• Direct Subsidized Stafford Loan—This loan is need-based; interest does not accrue and the payment of principal is deferred while you are enrolled at least half-time and for six months after your enrollment drops below half-time status.
• Direct Unsubsidized Stafford Loan—This loan is non-need based; payment of the principal is deferred while you are enrolled at least half-time and for six months after your enrollment period drops below half-time status. Interest on this loan begins accruing at the time of disbursement. Currently, the interest on an unsubsidized loan is fixed at 6.80% while you are enrolled in school. You have the option of making quarterly interest payments while in school or allowing the interest to be capitalized (added to the principal).

Loan Limits: The maximum (combined Subsidized and Unsubsidized) annual limits for these loans are as follows: