Federal Direct Subsidized Stafford Loans
The Federal Direct Subsidized Stafford Loan is awarded to meet financial need after other resources are subtracted. Maximum annual loan limits apply and may limit the amount that you may borrow.
The interest rate for Federal Subsidized Stafford Loans is variable and changes every July 1st. There is also an origination fee that will be deducted before the loan proceeds are sent to the school. The origination fee is a processing fee assessed by the Department of Education.
Repayment of the loan begins six months after you are no longer enrolled at least half time (six credits) and the federal government pays interest on the loan for you during eligible periods of enrollment.
Stafford Loan Eligibility Requirements
- You must be meeting Satisfactory Academic Progress (SAP) standards
- You must be enrolled for at least six credits each semester
- A current year FAFSA is required
- If the FAFSA is selected for verification, all required documents must be submitted and reviewed before the loan can be processed
Apply for a Federal Direct Subsidized Stafford Loan
If you are eligible for a Federal Direct Subsidized Stafford Loan, it will be included in your financial aid award package.
First-Time Stafford Loan Borrowers
- Step 1 – Accept the Stafford Subsidized Loan online via your myUMBC account.
- Step 2 – Complete a Federal Direct Stafford Loan Master Promissory Note (MPN).
- Step 3 – Complete the Stafford Loan Entrance Counseling.
In most cases, you will only be required to complete the Master Promissory Note (MPN) and Entrance Counseling once during their college career.
Prior Stafford Loan Borrowers
Loan Application Deadlines
Application Priority Processing Dates
Your loan application must be on file with our office by these dates in order for the loan funds to be available for the first billing due date.
Priority Processing |
Summer 15 | Fall 15 Only | Fall 15/ Spring 16 | Spring 16 Only | Summer 16 |
MPN and Entrance Counseling received by the following dates: | April 12, 2015 | June 26, 2015 | June 26, 2015 | Dec. 11, 2015 | April 15, 2016 |
Final Application Deadline Dates
Loan applications submitted after the priority deadline dates will be processed throughout the semester; however, MPNs and Entrance Counseling received after the following deadline dates cannot be processed.
Final Deadlines |
Summer 15 | Fall 15 Only | Fall 15/ Spring 16 | Spring 16 Only | Summer 16 |
Last day to submit a MPN and Entrance Counseling: | June 26, 2015 | Dec. 11, 2015 | May 1, 2016 | May 1, 2016 | June 24, 2016 |
Application Priority Processing Dates
Your loan application should be received in our office by these dates in order for the loan funds to be available for the first billing due date.
Priority Processing |
Summer 14 | Fall 14 Only | Fall 14/ Spring 15 | Spring 15 Only | Summer 15 |
MPN and Entrance Counseling received by the following dates: | April 18, 2014 | June 27, 2014 | June 27, 2014 | Dec. 12, 2014 | April 12, 2015 |
Final Application Deadline Dates
Loan applications submitted after the priority deadline dates will be processed throughout the semester; however, MPNs and Entrance Counseling received after the following deadline dates cannot be processed.
Final Deadlines |
Summer 14 | Fall 14 Only | Fall 14/ Spring 15 | Spring 15 Only | Summer 15 |
Last day to submit a MPN and Entrance Counseling: | June 27, 2014 | Dec. 12, 2014 | May 1, 2015 | May 1, 2015 | June 26, 2015 |
Reduce or Cancel a Federal Direct Subsidized Stafford Loan
Your may reduce or cancel a Subsidized Stafford Loan online via your myUMBC account if it has not yet disbursed. If the loan has already disbursed, you should complete the Loan Decrease/Cancel Request Form no later than 14 days after you receive the disbursement notification.
It is best to make the adjustments online or submit the form to our office for processing well before the funds are set to disburse to your billing account in order to avoid complications with the return of these funds.