Federal Direct Stafford Loans
There are two kinds of Federal Direct Stafford Loans: subsidized and unsubsidized. Both types have the following in common:
- Low-interest loans that must be repaid by the student (visit Federal Student Aid for the current interest rates on these loans).
- Origination fees are not to exceed 1.5% of the loan, which will be subtracted from each semester's payment.
- To be used for education-related expenses such as tuition, fees, books, living costs, transportation, and childcare.
- Must be repaid once you graduate or if you stop attending classes as at least a half-time student (6 credits).
- First time borrowers of Stafford Loans at Front Range Community College
are subject to a 30 day hold of their first loan disbursement.
The main difference between subsidized and unsubsidized loans is listed below. Visit Federal Student Aid for additional information about these loans.
Federal Direct Subsidized Stafford Loans
- Interest-free while you are enrolled in at least 6 credits while in a degree-seeking program (undergraduate or graduate)
*Subsidized Loan Limitations*
As of July 1, 2013, federal limitations
were implemented on borrowing Direct Subsidized Stafford Loans. More
information regarding this regulation can be found in the Federal
Student Aid document: Time Limitation on Direct Subsidized Stafford Loans.
Federal Direct Unsubsidized Stafford Loans
- Accrue interest while a student is enrolled in school (and during the repayment period)
Federal Direct Stafford Loan Eligibility Requirements
To be eligible for a Stafford Loan, you must:
- Complete a FAFSA, and all required documents must be submitted to FRCC.
- Be enrolled in a financial aid eligible degree and/or certificate program and taking 6 or more credits.
First-time borrowers must complete the Direct Loan Entrance Counseling session and the Direct Loan Master Promissory Note.
Federal Parent PLUS Loan
The Federal PLUS loan can be borrowed by parents of dependent undergraduate students to help pay for the student's education. PLUS loans are typically less expensive than private student loans because PLUS loan borrowing terms are regulated by the U.S. Department of Education. Visit Federal Student Aid for the current interest rate.
- Are offered one academic year at a time.
- Applications must be processed through the Department of Education who will approve or deny the application based on a review of the parent's credit history.
- If a PLUS loan application is denied, the student usually becomes eligible to borrow up to $4,000 in additional unsubsidized Stafford loan funds. This additional Stafford loan cannot exceed the student's cost of attendance minus all other aid (including other loans). Unsubsidized Stafford loans accrue interest while the student is in school.
Parents: Apply for a Parent PLUS loan by completing an online Parent PLUS loan application.