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Federal Stafford Direct Loans

General Information

Virginia Tech participates in the William D. Ford Federal Direct Loan Program (usually referred to as the Direct Loan Program). This program allows students to borrow their Federal Stafford Loans directly from the federal government, rather than through lending institutions. Additional information on the Direct Loan Program can be found in the Direct Loan Basics for Students Brochure. Through the Direct Loan Program, Stafford Loans are available to undergraduate, graduate and professional students and are designed to be low-interest loans to provide students with additional funds for college.

Subsidized Stafford

Subsidized loans are based on financial need as determined by the Expected Family Contribution on the FAFSA. The federal government pays the interest during in-school, grace, and deferment periods.

Unsubsidized Stafford

Unsubsidized loans are not based on financial need, therefore the federal government does not pay the interest during in-school, grace, and deferment periods. Students may choose to defer interest payments until repayment begins; however, the student is responsible for all interest that has accrued, which will automatically capitalize to the loan principal.

Eligibility

Repayment

  • Starts 6 months after student graduates or ceases to be enrolled at least half time
  • For the Direct Loan Program, contact the Direct Loan Servicing Center with questions regarding repayment of the Federal Stafford Loan.
  • For more specifics on repaying your Federal Stafford Loan, please review the Direct Loan Exit Counseling Guide.

Maximum Loan Amounts

 
Subsidized and/or Unsubsidized Loan
Additional
Unsubsidized Eligibility
Total per
Academic Year
Freshman
29 credits and below
$3,500
$2,000
$5,500
Sophomore
30 to 59 credits
$4,500
$2,000
$6,500
Junior
60 to 89 credits
$5,500
$2,000
$7,500
Senior
90 or greater credits
$5,500
$2,000
$7,500
A dependent student may qualify for additional unsubsidized loan money if a Parent PLUS Loan is denied.
 
Subsidized and/or Unsubsidized Loan
Additional
Unsubsidized Eligibility
Total per
Academic Year
Freshman
29 credits and below
$3,500
$6,000
$9,500
Sophomore
30 to 59 credits
$4,500
$6,000
$10,500
Junior
60 to 89 credits
$5,500
$7,000
$12,500
Senior
90 or greater credits
$5,500
$7,000
$12,500
    
 
Subsidized and/or
Unsubsidized Loan
Additional
Unsubsidized Eligibility
Total per
Academic Year
Graduate
$8,500
$12,000
$20,500
Veterinary Medicine
$8,500
$32,000
$40,500

 

Aggregate Loan Limits

This is the maximum total borrowing allowed (subsidized and unsubsidized combined) for all Stafford Loans.

 Aggregate Loan Amounts
Dependent Undergraduate$31,000 (no more than $23,000 may be subsidized)
Independent Undergraduate$57,500 (no more than $23,000 may be subsidized)
Graduate$138,000 (no more than $65,000 may be subsidized)
Veterinary Medicine$189,125 (no more than $65,000 may be subsidized)