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Do I Need a Cosigner?

No —��Direct Subsidized/Unsubsidized loans are guaranteed by the federal government, so no cosigner or credit check is necessary to receive them. You simply need to meet the criteria listed above, and complete the steps listed below.

What Is Subsidized and Unsubsidized?

With subsidized, the government pays the interest on the loan while the student is in school. With unsubsidized, interest begins to accrue as soon as the loan is disbursed. The student can choose to pay the interest while in school, or wait until after they have left school. Accumulated interest will capitalize, so it is recommended that students pay some or all of the interest while in school to keep their balance and subsequent monthly payments lower.

How Much May I Borrow Yearly?

Direct Subsidized/Unsubsidized loan eligibility is based on grade level. Grade level is determined by the number of credits completed and/or transferred to ����ר��:

• Freshman��(1.0 – 29.5 credits) $5,500 – max of $3,500 subsidized
• Sophomore��(30.0 – 62.5 credits) $6,500 – max of $4,500 subsidized
• Junior & Senior��(more than 63.0 credits) $7,500 each year —max of $5,500 subsidized
• Dependent students��whose parents have been denied a PLUS loan may borrow an additional $4,000 (Freshman and Sophomore levels), or $5,000 (Junior and Senior levels) of unsubsidized loan.

Students on the 120 credit curriculum will use the following class level chart:

• Freshman (1.0 – 29.5 credits) $5,500 – max of $3,500 subsidized
• Sophomore (30.0 – 59.0 credits) $6,500 – max of $4,500 subsidized
• Junior & Senior (more than 59.0 credits) $7,500 each year —max of $5,500 subsidized
• Dependent students whose parents have been denied a PLUS loan may borrow an additional $4,000 (Freshman and Sophomore levels), or $5,000 (Junior and Senior levels) of unsubsidized loan.

These are the maximums you may borrow. You are encouraged to borrow less whenever possible!

Is There a Limit On the Total Amount I Can borrow?

$31,000 for dependent undergraduate students. $57,500 for independent undergraduates and dependent undergraduates whose parents do not qualify for PLUS loans. No more than $23,000 may be in subsidized loans.

Are There Any Special Considerations for Part-Time Students?

If you are attending on a part-time basis (6.0 to 11.5 credits), your loan will be adjusted based on enrollment status. Additional information is available at .

If you would like an estimate of your charges and aid at part-time enrollment, please contact the Financial Aid Office (313.664.7495 or [email protected]). Students must be attending at least half-time (6.0 credits) to be eligible for Direct Subsidized/Unsubsidized loans.

What is the Interest Rate, and Who Pays the Interest?

Subsidized Federal Loan – are available at studentaid.gov.
The federal government pays the interest while the student is enrolled for at least six credits and for the six-month grace period after leaving school.

Unsubsidized Federal Loan – are available at studentaid.gov.
The student is responsible for paying the interest and it may be paid monthly or annually while in school, or it may be capitalized —added to the principal when repayment begins.

Are There Any Fees?

The origination fee is deducted from Federal Student Loans before disbursement.�� are available at studentaid.gov.

When Does Repayment begin?

​Six months after students leave school or drop below half-time enrollment (less than 6.0 credits). Students with unsubsidized loans may want to consider making payments on the accumulating interest while they are still in school. For more information about repayment visit��

I’d Like to Accept My��Direct Subsidized/Unsubsidized Loan(s). What Do I Do Now?

1. Check “accept” on your financial aid notification letter and return a signed copy to the ����ר�� Financial Aid Office. if you’d like to borrow less than the amounts awarded, note the amount you do want to accept at the bottom of the letter making sure to specify if it is the amount needed for the academic year or one semester only.
2. The MPN details the terms of the Stafford loan and the responsibilities of the borrower. It is a contract with the federal government and signing it is a pledge to repay all the Stafford loans disbursed to you during your education.
3. ��Entrance counseling is required by the federal government before students can receive their Stafford loan disbursements. This important step will explain your rights and responsibilities when you enter repayment and provide assistance toward financial planning.
4. Continue to use ��for detailed accounts summaries and information paying for and managing your loans.