Federal Stafford Loans

The Federal Stafford Loan Program offers both Federal Stafford Subsidized and Unsubsidized Loans to help you finance your college education and are disbursed directly to Hawkeye to be applied to your student account.

If you withdraw from classes, are enrolled less than part-time, or graduate, you will need to complete Exit Loan Counseling. If you withdraw from classes after your loans have been disbursed, you may need to return any aid you did not earn. Learn more about how withdrawing from classes can affect your Financial Aid Award.

If you are transferring from another college or university during the academic year, it is your responsibility to notify our office if you received aid at your previous college or university. Per federal regulations, you are allowed to only borrow the annual loan limit during the academic year.

Federal Stafford Loans must be repaid.

View a list of Loan Servicing Centers for Students.

Subsidized Federal Stafford Loan

A subsidized loan is awarded on the basis of financial need. If you are awarded a subsidized Federal Stafford Loan you will not be charged interest on the loan while you are enrolled in school at least half-time and during deferments. 

For first-time borrowers, there is a limit on the maximum period of time that you can receive Subsidized Loans.

Unsubsidized Federal Stafford Loan

If you are awarded an unsubsidized Federal Stafford Loan you will be charged interest on the loan from the time the loan is disbursed until it is paid in full. You can pay the accumulating interest while in school and during the grace period, or allow the interest to accumulate.

If you pay the interest as it accumulates, you will pay less during the loan repayment period.

If you choose to have the interest accumulate while you are in school, the interest will be added to the principal amount of the loan and will increase the amount to be paid once you go into repayment.

An unsubsidized loan is not awarded on the basis of need.

Origination Fee

Date of First Disbursement Origination Fee
December 1, 2013 - September 30, 2014 1.072%
October 1, 2014 - September 30, 2015 1.073%

Interest Rates

Direct Loan Type Date of First Disbursement Fixed
Interest Rate
Unsubsidized July 1, 2014–June 30, 2015 4.66%
July 1, 2013–June 30, 2014 3.86%
July 1, 2006–June 30, 2013 6.80%
Subsidized July 1, 2014–June 30, 2015 4.66%
July 1, 2013–June 30, 2014 3.86%
July 1, 2011–June 30, 2013 3.40%
July 1, 2010–June 30, 2011 4.50%
July 1, 2009–June 30, 2010 5.60%
July 1, 2008–June 30, 2009 6.00%
July 1, 2006–June 30, 2008 6.80%

How much can I borrow?

  • First-year Dependent students can borrow up to $5,500.

  • First-year Independent students can borrow up to $9,500

  • Second-year Dependent students can borrow up to $6,500.

  • Second-year Independent students can borrow up to $10,500

  • As a Dependent, if your parents are unable to qualify for a Federal Stafford Parent PLUS Loan, you can borrow up to an additional $4,000 in unsubsidized loan.

  • The total debt you can have outstanding from all Federal Stafford Loans is $31,000 as a dependent undergraduate student or $57,500 as an independent undergraduate student. No more than $23,000 of this amount may be in subsidized loans.

You are encouraged to borrow only what you need. Failure to repay any federal loan may result in:

  • inability to receive any financial aid
  • poor credit rating
  • garnishment of Federal Tax Refunds
  • inability to get future consumer loans

Eligibility criteria

To apply

Receiving Your Federal Stafford Loans

If you are awarded subsidized or unsubsidized Federal Stafford Loans, you will need to complete the following loan requirements prior to the loan disbursing:

  1. Accept or Reject the Loan(s)
  2. Compete the Master Promissory Note
  3. Complete the Loan Entrance Counseling
  4. Complete the Student Loan Game Plan

Disbursement of your financial aid.

Financial Aid Handbook | Next Page >

Financial Aid

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