Loan Features

Direct Stafford and GradPLUS Loan Counseling

Prior to the first disbursement and before graduation, Stafford and GradPLUS loan borrowers are required by Federal regulation to complete loan counseling. Stafford borrowers are typically required to complete entrance and exit counseling only once during a student’s educational experience unless a student has transferred from another institution or Stafford loan borrowing has gone inactive for over one year. GradPLUS borrowers are required to complete a separate counseling session.

Stafford and GradPLUS loan counseling may be completed online at the Department of Education Direct Loan website www.studentloans.gov. Students required to complete loan counseling will be notified by email.

Direct Stafford Loan Repayment

Stafford Loan repayment is normally required to begin after a six (6) month grace period following an enrollment status of less than half-time. This includes less than halftime enrollment while in school, withdrawal or leaving school and upon graduation. There is no penalty to a student for early repayment of all or part of a Stafford loan.

Refer to U.S. Dept. of Education Direct Loan website for more information regarding repayment options, plans, calculators, discharge and cancellation.

Examples of Typical Direct Stafford Loan Repayments (using fixed 6.8% interest rate)

Loan Amount	Standard (10 year repayment)		Extended		Graduate (Estimate)		Income Contingent - Single (Estimated w/$25,000 annual inc.)
	Per Month	Total Repaid	Per Month	Total Repaid	Per Month	Total Repaid	Per Month	Total Repaid	Per Month	Total Repaid
$3,500	$50	$4,471	Not Available	Not Available	$25	$5,157	$27	$6,092	$25	$6,405
$5,000	$58	$6,905	Not Available	Not Available	$40	$7,278	$38	$8,703	$36	$9,150
$7,500	$83	$10,357	Not Available	Not Available	$59	$10,919	$57	$13,055	$54	$13,725
$10,500	$121	$14,500	Not Available	Not Available	$83	$15,283	$80	$18,277	$76	$19,215
$15,000	$173	$20,714	Not Available	Not Available	$119	$21,834	$114	$26,110	$108	$27,451
$40,000	$460	$55,239	$227	$83,289	$316	$58,229	$253	$72,717	$197	$84,352

*Source: U.S. Dept. of Education

Repayment information is included in the required loan entrance and exit counseling sessions as well as on the Direct Loan Master Promissory Note.

Cancellation

Students have the right to cancel all or a portion of a student loan and have it returned to the respective lender. To do so, a borrower must notify OSFA in writing within fourteen (14) days of the date of disbursement. A borrower should contact the lender for procedures to cancel loans after the fourteen day period has expired.