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Getting Started University Costs Forms Grants and Loans Aid Award Stafford Loan Loan Repayment Contact Us Financial Aid Home |
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Federal Direct Stafford Loan To be offered a Federal Direct Stafford Loan, students must first apply for student financial assistance with the University. They must then accept or reject each type of assistance offered, and complete all required paperwork based on the aid they accept. The Federal Direct Stafford Loan is the basic component of financial aid packages, and it can either be a need-based subsidized or non need-based unsubsidized loan. All interest accrued on subsidized Stafford loans is paid by the government as long as the student remains enrolled at least half-time at Rush, during authorized periods of deferment, and during a six-month grace period following graduation/from the time a student drops below half-time. Interest on unsubsidized Stafford loans accrues from the moment of disbursement and throughout the entire life of the loan. Effective for the 2010-11 academic year (summer 2010 through spring 2011 quarters), all students will be required to use the US Department of Education as their lender. No exceptions will be made, regardless of when a student starts/started or finishes their academic program at Rush. After accepting an offered Stafford Loan, the Rush University Office of Student Financial Aid will originate the student's loan with the US Department of Education. These loans require each new borrower to complete both a Master Promissory Note and Entrance Counseling session. Loans issued will be at a fixed 6.8% interest rate. The only exception to this rate is for undergraduate students taking out subsidized Stafford loans; those loans will be at a fixed 4.5% interest rate if they are first disbursed on or after July 1, 2010 [5.6% before that date] (undergraduate unsubsidized loans will have a fixed 6.8% interest rate). Amounts listed are the maximums for the 2010-11 academic year.
Loans issued have a six-month grace period following graduation/from the time a student drops below half-time enrollment. During the grace period, no payments are due. After the grace period expires, borrowers have a ten-year standard repayment term, with the option of extension in the cases of financial hardship or large loan balance. These loans also allow for specific deferments, or time periods when the lender will temporarily suspend all collection activity on the loan. If a borrower requires a temporary postponement or partial reduction in monthly payment and is not eligible for a deferment, they may request a forbearance.
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