Federal Direct Stafford Loan

Terms:

Information:

Allows students to borrow up to $3500 as a freshman and $4500 as a sophomore per academic year
Loans you are eligible to receive will be listed on your Chattanooga State Tigerweb self-service account
There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins.

The Smarter Solutions for Students Act (H.R. 1911) establishes how interest rates will be calculated for federal student loans.

Calculates subsidized and unsubsidized Stafford loans using a formula based on the 10-year Treasury Note plus 2.05 percent.
Calculates graduate and parent PLUS loans using a formula based on the 10-year Treasury Note plus 4.5 percent.
Resets student loan interest rates once a year, allowing rates to move with the free market and ensuring borrowers can take advantage of lower interest rates when available.
Protects borrowers in high interest rate environments by including a 8.5 percent cap on Stafford Loan interest rates and a 10.5 percent cap on PLUS loans.
New student loan interest rates starting July 1, 2014:
- 4.66% Direct subsidized and unsubsidized loans for undergraduate students
- 7.21% Direct PLUS Loans (Parents of Dependent Undergraduate Students)