Loans
Information you need to know about federal education loans
Education Loans
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:
- For undergraduate students whose disbursement is between July 1, 2022 and June 30, 2023 the interest rate is 4.99%
- For graduate students whose first disbursement is between July 1, 2022 and June 30, 2023 the interest rate is 6.54%
- Graduate students are not eligible for interest subsidies as of July 1, 2012.
- Please note that the interest rates also changed from fixed to variable-fixed, meaning that the interest rate can change every July 1, but any loan taken under that rate will remain fixed for the life of the loan.
- New loans whose first disbursement is on or after October 1, 2020 will have an origination fee of 1.057%.
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.
Base Stafford Subsidized/Unsubsidized
Freshmen (0-29 hours)
$3,500
Sophomore (30-59 hours)
$4,500
Junior (60-89 hours)
$5,500
Senior (90+ hours)
$5,500
Second Bachelors
$5,500
Teacher Certification
$5,500
Graduate
$8,500
Additional Unsubsidized Dependent/Independent
Freshmen (0-29 hours)
$2,000/$6,000
Sophomore (30-59 hours)
$2,000/$6,000
Junior (60-89 hours)
$2,000/$7,000
Senior (90+ hours)
$2,000/$7,000
Second Bachelors
$2,000/$7,000
Teacher Certification
$7,000
Graduate
$12,000
Total combined Dependent/Independent
Freshmen (0-29 hours)
$5,500/$9,500
Sophomore (30-59 hours)
$6,500/$10,500
Junior (60-89 hours)
$7,500/$12,500
Senior (90+ hours)
$7,500/$12,500
Second Bachelors
$7,500/$12,500
Teacher Certification
$12,500
Graduate
$20,500
Note: Independent students include students whose parents were denied a Parent PLUS Loan
Graduate students are no longer eligible for Subsidized loans as of July 1, 2012
Total Aggregate Limit
Dependent, Undergraduate, Second Bachelor, Teacher Certification
$31,000 - only $23,000 may be subsidized
Independent Undergraduate, Second Bachelor, Teacher Certification
$57,500 - only $23,000 may be subsidized
Graduate or Professional
$138,500 - only $65,500 may be subsidized
Note: Graduate limit includes Stafford Loans received as an undergraduate.