Federal Stafford Direct Loans are government
sponsored low interest loans. After July 2011, Salve Regina will process
all Federal Direct Stafford, Parent PLUS and Graduate PLUS loans via the U.S.
Department of Education's William D. Ford Direct Loan Program. You, the student, borrow these loans directly
through the federal government. Based on your federal financial aid
eligibility, you may be awarded either a subsidized Direct Loan or an unsubsidized
Direct Loan. Subsidized loans are for students with demonstrated financial
need, as determined by federal regulations. Unsubsidized loans are not based on
financial need. Check your award letter
to see which type of Stafford Direct Loan you are eligible for.
Note: A fee of 1 percent is assessed up front before disbursement.
For New Students
In order to apply for a Federal Direct Loan, you must complete a Loan Entrance Counseling Session and a Master
Promissory Note. Click on the link
below for more detailed instructions:
Loan Application Instructions for New Salve Regina Student borrowers
Returning Students, Prior Borrowers
If you have
previously borrowed Direct Loans while enrolled at Salve Regina, you are considered
a prior borrower. We will process your loan for the amount on your award letter unless you notify us in writing that you wish to decline or reduce the amount of your loan.
Unsubsidized Direct Stafford Loans
The interest rate for subsidized undergraduate
federal Direct Loans disbursed after July 1, 2011 will be 3.4 percent. The
interest rate for subsidized graduate federal Direct Loans disbursed after
July 1, 2011 will be 6.8 percent. The federal government pays the interest
accruing on a subsidized federal Direct Loan while the student is enrolled at
least half-time in a degree granting program.
The interest rate for all unsubsidized Direct Loans disbursed after July 1, 2011 will be 6.8 percent. Interest
accrual under the unsubsidized program begins at disbursement. No payments of
interest or principal are due until after the six month grace period, but you
may choose to pay the interest on unsubsidized Direct Loans as it accrues. Any
unpaid interest will be added to the principal balance of the loan when it
Both types of Direct Loans enter repayment
six months after the student ceases to be enrolled at least half-time, and
interest begins to accrue at this point. To determine eligibility for a federal Direct Loan, you must apply for financial aid each year by submitting the FAFSA and all
other required documentation.