Gustavus participates in the Federal Direct Loan Program for Stafford and PLUS (Parent Loan for Undergraduate Students).

Federal Direct Stafford Loans (Subsidized and Unsubsidized) may be packaged as part of a student's aid award if the student has filed a FAFSA and a Gustavus Financial Aid Application. The 2009-2010 interest rate for the subsidized Stafford loan is 5.6%. The interest rate on the unsubsidized Stafford loan is 6.8%.

In the first year that a student borrows, a student must complete entrance counseling and a master promissory note for each of the programs. In subsequent years, the student must only file a Renewal FAFSA and the Gustavus Financial Aid Application to be considered for these types of loan assistance.   There are four types of repayment plan - standard, extended, graduated, and income contingent - so you can choose the one that is best suited for your situation.  Visit http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html for additional information on loan repayment and consolidation.

Important Loan Processing Tips

• Loans are disbursed half in each semester. You or your parent (for PLUS) can reduce or cancel a disbursement of a loan at any time before the loan is received by Student Accounts.
• Using the information and worksheets provided by the College, plan your annual financial needs by June and complete the loan process by August 1.
• If you have questions, contact the College to review loan options and processes early in the summer to avoid late disbursements and finance charges.
• Utilize the on-line application processes for federal Stafford, Perkins, and PLUS.

• Federal Stafford Direct Loan Promissory Note
• Entrance Counseling for Stafford Direct Loans
• Exit Counseling for Stafford Direct Loans
• Direct Loan Servicing Center: your account, consolidation, electronic services, & online payments

Annual loan maximums

Ford Federal Direct Loan Annual Maximums

Dependent Students - Undergraduates

Grade Level	Maximum Sub only	Additional Unsub	Sub/Unsub Total
1st year	$3,500 +	$2,000 =	$5,500
2nd year	$4,500 +	$2,000 =	$6,500
3rd-5th year	$5,500 +	$2,000 =	$7,500
Aggregate maximum	$23,000		$31,000

The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.

Independent Students - Undergraduate

Grade Level	Maximum Sub only	Additional Unsub	Sub/Unsub Total
1st year	$3,500 +	$6,000 =	$9,500
2nd year	$4,500 +	$6,000 =	$10,500
3rd-5th year	$5,500 +	$7,000 =	$12,500
Aggregate maximum	$23,000		$57,500

The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.

Independent Students - Graduate

Grade Level	Maximum Sub only	Additional Unsub	Sub/Unsub Total
Graduate/Professional	$8,500 +	$12,000 =	$20,500
Aggregate maximum	$65,500		$138,500

The subsidized portion of a graduate's loan aggregate may not exceed $65,500.