Federal Direct Loan FAQs
How and when do I apply for a federal Direct Stafford loan if I want to borrow for the 2013-14 academic year?
For incoming first-years and students who have not previously borrowed:
Complete your 2013-14 Swarthmore College financial aid application.
Follow the instructions previously emailed to the first year class's Swarthmore email address on May 28, 2013.
For students who have previously borrowed:
Complete your 2013-14 Swarthmore College financial aid application and tell us the amount you wish to borrow in # 22 of the Swarthmore Financial Aid Request form, or tell us the amount you wish to borrow in an email to firstname.lastname@example.org.
Where can I learn more about the federal Direct Stafford loan program?
Have federal student loan interest rates changed?
Yes, interest rates will be changing for some loans. Your 2013-14 subsidized federal Direct Stafford Loan will be interest-free during your enrollment (while at Swarthmore and in graduate school, if you are enrolled at least half-time) but then3.86% once you begin repayment and continuing for the life of the loan.
Your 2013-14 unsubsidized federal Direct Stafford Loan will carry a 3.86 % interest during your enrollment and during repayment (although you may defer repayment of interest during your enrollment). For the Federal Government's detailed explanation, please visit the Department of Education's website. For the most up-to-date explanation of all federal financial aid changes, visit Department of Education website.
Where can I find an explanation of terms such as subsidized, unsubsidized, deferment, or forbearance?
Visit the Department of Education's website.
Why is my loan unsubsidized?
We must follow federal regulations when we determine the subsidy on your federal Direct Loan. We use our standard costs, your expected family contribution from filing the FAFSA and all your sources of financial aid.
For the 2013-14 academic year what administrative fees will be retained from my loan by the US Department of Education?
Each July 1st, Congress approves legislation that may change the terms of federally funded financial aid programs, including loans. This past year, due to Sequestration, Congress changed the administrative fees associated with their federal Direct Stafford and PLUS loans.
- The federal Direct Stafford Loan administrative fee is 1.051%. To figure the amount of the fee, take the amount borrowed and multiply by .01051. To figure the net amount, the actual amount that will be credited to your Swarthmore account, multiply the amount you requested by .98949.
- The federal PLUS administrative fee is 4.204%. To figure the amount of the fee, take the amount borrowed and multiply by .04204. To figure the net amount, the actual amount that will be credited to your student's Swarthmore account, multiply the amount you requested by .95796.
I'd like to know more about my federal student loan repayment obligations and opportunities. Will Swarthmore be providing me guidance?
Yes,as always, we'll be providing a few financial literacy and debt management programs each semester. You may also visit our Direct Stafford Loan Guidance page for a list of helpful Federal Department of Education and private websites.