Subsidized Federal Stafford Loan

Federal Stafford Loans are low-interest federal loans that are either subsidized or unsubsidized. You can receive a subsidized and unsubsidized loan for the same enrollment period as long as the total does not exceed the allowable amount for your grade level.

A subsidized loan is awarded on the basis of financial need. No interest is charged until you begin repayment, or during authorized periods of deferment. The federal government subsidizes the interest during these periods.

Eligibility

• Undergraduate and graduate students who are U.S. citizens or eligible noncitizens
• Financial need according to federal guidelines
• At least half-time enrollment
• Continued satisfactory academic progress in a degree program

Annual Loan Limits

Drexel recommends loan limits of smaller amounts in the freshman and sophomore years to preserve a student's ability to borrow in the fifth year. If eligible for less than the loan maximum, you may apply for the difference in unsubsidized funds.

• Freshmen $3,500
• Sophomores $4,500
• Juniors and seniors $5,500
• Graduate/Medical students $8,500

Cumulative Loan Limits

• Maximum of $23,000 as an undergraduate
• Maximum of $65,000 for graduate students, including undergraduate loans

Interest Rate

• For the 2008–09 aid year, the interest rate is fixed at 6 percent for undergraduate students and 6.8 percent for graduate students
• No interest accrues until you begin repayment, or during authorized periods of deferment

Additional Fees

• For 2008–09, the origination fee will be up to 3 percent of the loan amount
• For loans disbursed in subsequent years, the maximum loan fee will be reduced on a gradual basis

Disbursements

• At the beginning of each term of enrollment, including co-op

Repayment

• The student is responsible for repayment
• The length of repayment is 10 years, but may be extended to 25 years
• Repayment begins six months after graduation, withdrawal from the University, or cessation of at least half-time enrollment
• Repayment can be deferred if you return to school at least half-time and for certain other circumstances
• Graduated, income-sensitive, and extended repayment options available

How to Apply

You are automatically considered for Stafford Loans if you file the FAFSA. When your eligibility has been determined, you will be notified to go online to select a lender and sign the promissory note.

You are free to select any lender you wish; however, Drexel has selected a number of lenders who offer the best benefits and services for our borrowers. Review our Recommended Lender Policy to learn more about the process we used to arrive at our selections.

• Visit SimpleTuition's lender comparison tool for Drexel borrowers to compare the borrower benefits offered by our recommended lenders. Then follow the instructions on the website to select a lender and sign the promissory note.
• If you prefer a different guaranty agency, please contact the Financial Aid Office at 215-895-2537 or AskDrexel.

Master Promissory Note

A signed Master Promissory Note (MPN) is required to be submitted only once and remains valid for up to 10 years. The Stafford Loan is thus renewed automatically for eligible returning students, and will be confirmed each year by a Statement of Disclosure sent to you from your lender. First-time borrowers will receive instructions to electronically sign an MPN after July 1.