STAFFORD
Direct Loans are low-interest loans for students and parents to help pay for the costs of student's education after high school. The lender is the US Department of Education rather than a bank or other financial institution. Eligibility for this loan program will be determined upon completion of the Free Application for Federal Student Aid (FAFSA). Detailed information can be found at The Student Guide.
Federal Stafford Loans are made in the student's name and can be either subsidized or unsubsidized.
A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. This loan must be repaid.
An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized-that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. This will increase the amount you have to repay.
Under federal law, you must complete a Loan Entrance Counseling session before funds may be disbursed. It is important that you know and understand your rights and responsibilities as a student borrower. Please contact our office if you have any questions.
Further, you must complete a Master Promissory Note (MPN). In most cases, you will sign only one promissory note that will be used for all loans at Georgia College. Students may complete the MPN electronically at the Direct Loans Website. By signing the MPN, students are confirming their understanding that Georgia College may make new loans for the duration of their education (up to 10 years), without having to sign another MPN. Each academic year, GCSU will disburse loan proceeds to student's accounts as indicated on the on-line Award Letter viewed from the GCSU Web Student Information System.
Undergraduate Student |
|
Maximum Subsidized Limit |
Additional Stafford Limit |
Combinational Total |
Dependent Student: |
Freshman |
$3.500 |
$2,000 |
$5,500 |
|
Sophomore |
$4,500 |
$2,000 |
$6,500 |
|
Junior & Senior |
$5,500 |
$2,000 |
$7,500 |
|
Aggregate Loan Limits |
$23,000 |
$8,500 |
$31,000 |
|
|
|
|
|
Independent Students: |
Freshman |
$3,500 |
$6,000 |
$9,500 |
|
Sophomore |
$4,500 |
$6,000 |
$10,500 |
|
Junior & Senior |
$5,500 |
$7,000 |
$12,500 |
|
Aggregate Loan Limits |
$23,000 |
$34,500 |
$57,500 |
|
|
|
|
|
Graduate Students: |
Yearly: |
$8,500 |
$12,000 |
$20,500 |
|
Aggregate Loan Limits |
$65,500 |
$73,000 |
$138,500 |
Aggregate limits for graduate students are inclusive of all undergraduate loans received.
Independent students and dependent students whose parents are denied under the Federal PLUS Loan may borrow additional Unsubsidized Stafford Loan funds. Freshmen and sophomores may borrow an additional $4,000 per year; juniors and seniors may borrow an additional $5,000 per year. Both may not exceed the student's COA. The yearly maximum for the Federal Stafford Loan will cover Fall, Spring and Summer Semesters. If the maximum has been received over Fall and Spring semesters, students will not be eligible to borrow additional funds for the Summer term.
Students must be enrolled at least half-time (6 or more hours for undergraduate students and 5 or more hours for graduate students) in order to have these funds disbursed to their student account. When the loan is approved, the funds will be disbursed directly into the system to go toward paying the balance of the account with the Business Office at the beginning of each semester. Please see the section entitled Disbursement of Financial Aid for specific details. Students, currently receiving or who have received a loan through Georgia College & State University, who graduate, transfer, drop below half-time enrollment status, or otherwise leave school must arrange for an Exit Interview for the Federal Stafford loan at the GCSU Financial Aid Office.
Students, currently receiving or who have received a loan through Georgia College & State University, who graduate, transfer, drop below half-time enrollment status, or otherwise leave school must arrange for an Exit Interview for the Federal Stafford loan at the GCSU Financial Aid Office.