Federal Direct Stafford Loans

The Federal Direct Stafford Loan program is provided by the US Department of Education and is available for undergraduate and graduate degree-seeking students who are enrolled at least half-time. In order to be awarded Stafford loans, students must submit a FAFSA and have it submitted to UTSA. Please view the links below for information regarding Direct Stafford Loans.

Eligibility for Stafford Loans
Subsidized Stafford Loan
Unsubsidized Stafford Loan
Steps to Receive a Stafford Loan (subsidized and unsubsidized)
Interest Rates & Origination Fees
Yearly Loan Limits & Maximum Total Debt
Terms of Repayment & Exit Counseling

Eligibilty for Stafford Loans

Must have a FAFSA on file with UTSA
Must meet Satisfactory Academic Progress
Must enroll at least half-time at UTSA
For subsidized loan, must demonstrate financial need

Subsidized Stafford Loan

Subsidized Stafford loans are awarded on the basis of need. The interest that accrues on this loan while a student is in school is subsidized (or paid) by the federal government. Typically, the government will subsidize the interest rate until the loan enters into repayment (to include the grace period of the loan). Due to legislative changes, subsidized Stafford loans made July 1, 2012 through July 1, 2014 will begin to accrue interest during the grace period.

IMPORTANT NOTICE FOR GRADUATE STUDENTS:
Due to legislative changes, effective July 1, 2012, graduate and professional students are no longer eligible to receive subsidized Stafford loans.

Unsubsidized Stafford Loan

Unsubsidized Stafford loans are not awarded based on need. The student is responsible for the interest payments from the time the loan is disbursed until it is paid in full. You have the option to pay the interest as you continue to attend school or let the interest accumulate and be added to the principal of your loan. This means that interest will "capitalize" and the total amount you repay will be higher than if you paid the interest all along.

Interest Rates & Origination Fees

2011-2012:

Subsidized Loan for Undergraduate Students: 3.4%
Subsidized Loan for Graduate Students: 6.8%
Unsubsidized Loan for All Students: 6.8%
Origination Fees: 1% with a 0.5% rebate at time of disbursement

2012-2013:

Subsidized Loan for Undergraduate Students: 3.4%
Unsubsidized Loan for All Students: 6.8%
Origination Fees: 1%

Steps to Receive a Stafford Loan

Students must accept loan(s) on ASAP
Students must complete Stafford Entrance Counseling at www.studentloans.gov
Students must sign an Electronic Master Promissory Note (EMPN) at www.studentloans.gov

Please be mindful of Enrollment Requirements for disbursement of Stafford loans. Typically, if all requirements are met, Stafford loans disburse no earlier than 10 days prior to the start of term.

Yearly Loan Limits & Maximum Total Debt

The amount of Stafford loan you may receive in an academic year (fall, spring, summer) is pre-determined by the federal government.

Dependent Undergraduate Students:


Classification	Yearly Subsidized Maximum*	Yearly Unsubsidized Maximum
Freshman (0-29 hours)	$3500	$2000
Sophomore (30-59 hours)	$4500	$2000
Junior/Senior (60+ hours)	$5500	$2000
Post-Bac Teacher's Certification	$5500	$2000
Maximum Total Debt:	$31,000 ($23,000 may be subsidized)

*NOTE: Eligibility for subsidized Stafford loan is determined on your need. Should you not qualify for the subsidized Stafford loan, the amount will be awarded as unsubsidized.

Independent Undergraduate Students:


Classification	Yearly Subsidized Maximum*	Yearly Unsubsidized Maximum
Freshman (0-29 hours)	$3500	$6000
Sophomore (30-59 hours)	$4500	$6000
Junior/Senior (60+ hours)	$5500	$7000
Post-Bac Teacher's Certification	$5500	$7000
Maximum Total Debt:	$57,500 ($23,000 may be subsidized)

*NOTE: Eligibility for subsidized Stafford loan is determined on your need. Should you not qualify for the subsidized Stafford loan, the amount will be awarded as unsubsidized.

Graduate Student Loan Limits

Unsubsidized Loan	$20,500/Academic Year
Maximum Total Debt**	$138,500 ($65,500 may be subsidized)*

*NOTE: Effective July 1, 2012, subsidized Stafford loans are no longer available to graduate students per legislative changes.

**NOTE: Graduate maximum total debt includes all subsidized and unsubsidized loans received during undergraduate study.

Terms of Repayment & Exit Counseling

If you are graduating or ceasing to be at least a half-time student, you must complete Stafford Exit Counseling at www.studentloans.gov. You can view the total amount of Stafford loans borrowed anytime by logging on to www.nslds.ed.gov. Standard repayment is typically 10 years, however there are other options. View our website for repayment strategies.