Federal Direct Student “Stafford” Loans (Subsidized and Unsubsidized)

These federal student loans are available to undergraduate and graduate level students who are enrolled at least half time. Students apply for these loans when completing the FAFSA. Award amounts vary, depending upon grade level. Students can notify our office regarding any changes in grade level in order to receive any possible increase in loan funding.

Attention: First Time Borrower Requirements: You must complete your Entrance Counseling and Master Promissory Note or your loan will not disburse into your student account!

Important Note Regarding “Stafford” Loans:

WVU participates in the Federal Direct Loan Program which means that students do not need to apply for a Stafford loan through a bank, credit union, or other lender. We process loan applications directly with the federal government and these third-party servicers are not needed. However, you may wish to obtain additional funding in the form of Non-Federal "Alternative" Loans from these lenders if you should need them.

Difference between “subsidized” and “unsubsidized” loans

An important distinction between a subsidized and an unsubsidized loan is that interest accrues on an unsubsidized loan and must either be paid during in-school periods or deferred and capitalized (added to the principal of the loan). The federal government pays the interest on subsidized loans during periods of at least half-time enrollment.

Current Federal Direct Student “Stafford” Loan Interest Rates

• Interest rates for Direct Subsidized Loans for graduate student borrowers and Direct Unsubsidized Loans for graduate and undergraduate borrowers first disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%.

• Interest rates for Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate as follows:
  • If first disbursed on or after July 1, 2006 and prior to July 1, 2008 – 6.8%.
  • If first disbursed on or after July 1, 2008 and prior to July 1, 2009 – 6.0%.
  • If first disbursed on or after July 1, 2009 and prior to July 1, 2010 – 5.6%.

An origination fee (less a rebate amount) is deducted from each disbursement and retained by the federal government.

Aggregate Loan Limits

“Aggregate Loan Limit” refers to the maximum amount of borrowing a student may accumulate during that particular level of their education. Students can track their total borrowing using the National Student Loan Data System at http://www.nslds.ed.gov.

Direct Loan Servicing

Find information about federal direct loan account balances, repayment, billing and payment options and contact information for the Direct Loan Servicing Center at www.dl.ed.gov or call them at 1-800-848-0979.