Direct Stafford Loans

Direct Stafford Loans are the Department of Education's major form of self-help aid. At ESU, funds for the Direct Stafford programs are borrowed from the Federal Treasury.

• A subsidized loan (available for undergraduates only) is awarded on the basis of financial need. You will not be charged interest during the time that you are enrolled at least half-time in a degree-seeking program or during authorized periods of deferment. The federal government subsidizes the interest during these periods.
• An unsubsidized loan is not awarded on the basis of financial need. Interest will accrue from the day that the loan is disbursed until it is paid in full. If interest is allow to accumulate, it will be capitalized any time the loan enters repayment. If you choose to pay the interest as it accumulates, you will repay less over the life of your loan.

Additional information:

Please visit the U.S. Department of Education's website for current interest rates and loan origination fee information.

Eligibility for Direct Stafford loans will be detailed on your award letter, and you must utilize Hornet 365 to accept the award offer. Once a loan has been accepted, the Office of Student Financial Aid and Scholarships will create a loan application on your behalf with the Department of Education. The loan is not considered valid until the student has completed a Master Promissory Note (MPN) which serves as your application and promise to repay the loan. The MPN can be completed by going to the Federal Student Loan website.

In addition to the MPN, students must also complete Direct Entrance Loan Counseling at least once at ESU. Entrance Loan Counseling serves as a review of your rights and responsibilities as a Direct Stafford loan borrower, and loan proceeds cannot be disbursed unless a student has completed it. This requirement can also be completed by going to the Federal Student Loan website.

You have the right to cancel all or a portion of Direct Stafford loan proceeds by contacting the Office of Financial Aid, Scholarships, & Veterans Services prior to disbursement or 14 days after disbursement.

Alternative/Private Educational Loan

Students may apply for an alternative or private educational loan through a lender; however, we recommend that you complete the FAFSA and use the Direct Stafford Loan program as your primary education loan source.  The Direct Stafford loans may have lower interest rates, better repayment terms, and loan forgiveness options.

Students who are interested in private educational loans may obtain more information on our Private Educational Loan page.

*Also applies to dependent students whose parents can't borrow Parent PLUS loan

*Also applies to dependent students whose parents can't borrow Parent PLUS loan