Federal Direct Subsidized/Unsubsidized Loan Program

Federal Direct Subsidized/Unsubsidized Loan Program

Undergraduate Students:

subsidized loan is awarded on the basis of financial need. The federal government pays interest for the loan ("subsidizes" the loan) until you graduate or stop attending half-time and during authorized periods of deferment.

An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. 

Students may be eligible for Federal Direct Subsidized and/or Unsubsidized Loans by completing the FAFSA. File at fafsa.gov.

A student may be eligible if they are eligible for federal financial aid and are enrolled in a degree seeking program and at least 6 credits per semester (half-time) at Stockton University. 

Eligible students borrow directly from the U.S. Department of Education.

If dependent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:

 
0-31 Earned Credits
32-63 Earned Credits
64 and Above Earned Credits
Subsidized
$3,500
$4,500
$5,500
Unsubsidized
$2,000
$2,000
$2,000
Total
$5,500
$6,500
$7,500

 

If independent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:

 
0-31 Earned Credits
32-63 Earned Credits
64 and Above Earned Credits
Subsidized
$3,500
$4,500
$5,500
Unsubsidized
$6,000
$6,000
$7,000
Total
$9,500
$10,500
$12,500


When added to other financial aid resources, the loans amount may not exceed the cost of attendance at the time it is disbursed to the school.

Enrollment:

Federal direct loans are offered at the beginning of an academic year and are based on expected half-time enrollment for two semesters. Per federal regulations, institutions are required to prorate loans for graduating undergraduate students when their final period of enrollment is less than a full academic year. Learn more about Federal Direct Loan Proration here or contact the Office of Financial Aid at 609.652.4203.

Aggregate (Lifetime) Borrowing Limits:

In addition to the limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits), there are limits on the total amounts that you may borrow from the U.S. Department of Education for undergraduate and graduate study (aggregate loan limits).

The aggregate loan limit for dependent undergraduate students = $31,000 ($23,000 of this amount may be in subsidized loans).

The aggregate limit for independent undergraduate students = $57,500 ($23,000 of this amount may be in subsidized loans).

To learn more about lifetime eligibility, visit studentaid.gov.

To have these loans applied to a student's account, the student needs to accept them within the goStockton portal and complete Entrance Counseling and a Master Promissory Note on studentaid.gov.

Visit stockton.edu/fafsa for instructional videos guiding you through the process. Once completed, the university will receive notice from the federal government and your account will be updated within 3-5 business days.

You will begin repayment on the principle 6 months after you stop attending half-time or graduate.

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete Exit Counseling each time you:

  • Drop below half-time enrollment
  • Graduate
  • Leave school

Exit Counseling provides important information regarding your rights and responsibilities to the federal loans you borrowed while attending school. It also provides examples of the various repayment plans available and loan forgiveness options for certain professions. It is an important and valuable tool to prepare you for loan repayment success.

You must complete Exit Counseling no sooner than 30 days prior to your graduation date. Our office will be notified electronically once you have successfully completed the module. This process usually takes 1-2 business days. Holds are placed on your Stockton academic transcript and degree until the requirement is complete.

If you have completed your Exit Counseling during a previous term of enrollment, you must complete a new Exit Counseling 30 days prior to your graduation date.

 

It is important for students to be proactive and be sure they are making their payments on time. Students who make late payments or do not repay their student loans will be subject to late fees and could go into loan default, which affects their credit and ability to borrow in the future.

Below is a sample Loan Repayment Schedule for a sample loan of $3,500 with an interest rate of 3.73% and a standard 10 year repayment term.

Year Total Payment Principal Interest Total Interest Unpaid Balance
0         $3,500
1 $419.88 $294.33 $125.55 $125.55 $3,205.69
2 $419.88 $305.49 $114.39 $239.94 $2,900.22
3 $419.88 $317.10 $102.78 $342.72 $2,583.15
4 $419.88 $329.11 $90.77 $433.49 $2,254.05
5 $419.88 $321.26 $78.26 $511.75 $1,912.47
6 $419.88 $354.58 $65.30 $577.05 $1,557.92
7 $419.88 $368.02 $51.86 $628.91 $1,189.92
8 $419.88 $381.99 $37.89 $666.80 $807.96
9 $419.88 $396.48 $23.40 $690.20 $411.50
10 $419.88 $411.52 $8.36 $698.56 $0

Learn more about Federal Direct Subsidized and Unsubsidized loans for undergraduate students at studentaid.gov.


Graduate Students:

An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. 

Students may be eligible for an unsubsidized loan by completing the FAFSA. File at fafsa.gov.

A student may be eligible if they are enrolled in a degree seeking program and at least 5 credits per semester at Stockton University.

Eligible students borrow directly from the U.S. Department of Education.

Students may borrow up to $20,500 each academic year of a Federal Direct Unsubsidized Loan.

When added to other financial aid resources, the loan amount may not exceed the cost of attendance at the time it is disbursed to the school.

Enrollment:

Federal direct loans are offered at the beginning of an academic year and are based on expected half-time enrollment for two semesters.

Aggregate (Lifetime) Borrowing Limits:

In addition to the limits on the amount in unsubsidized loans that you may be eligible to receive each academic year (annual loan limits), there are limits on the total amounts that you may borrow from the U.S. Department of Education for undergraduate and graduate study (aggregate loan limits).

The aggregate loan limit for graduate students = $138,500 ($65,500 of this amount may be in subsidized loans).

The graduate aggregate limit includes all federal loans received for undergraduate study.
 

To learn more about lifetime eligibility, visit studentaid.gov.

To have these loans applied to a student's account, the student needs to accept them within the goStockton portal and complete Entrance Counseling and a Master Promissory Note on studentaid.gov.

Visit stockton.edu/fafsa for instructional videos guiding you through the process. Once completed, the university will receive notice from the federal government and your account will be updated within 3-5 business days.

You will begin repayment on the principle 6 months after you stop attending half-time or graduate.

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete Exit Counseling each time you:

  • Drop below half-time enrollment
  • Graduate
  • Leave school

Exit Counseling provides important information regarding your rights and responsibilities to the federal loans you borrowed while attending school. It also provides examples of the various repayment plans available and loan forgiveness options for certain professions. It is an important and valuable tool to prepare you for loan repayment success.

You must complete Exit Counseling no sooner than 30 days prior to your graduation date. Our office will be notified electronically once you have successfully completed the module. This process usually takes 1-2 business days. Holds are placed on your Stockton academic transcript and degree until the requirement is complete.

If you have completed your Exit Counseling during a previous term of enrollment, you must complete a new Exit Counseling 30 days prior to your graduation date.

 

It is important for students to be proactive and be sure they are making their payments on time. Students who make late payments or do not repay their student loans will be subject to late fees and could go into loan default, which affects their credit and ability to borrow in the future.

Below is a sample Loan Repayment Schedule for a sample loan of $3,500 with an interest rate of 3.73% and a standard 10 year repayment term.

Year Total Payment Principal Interest Total Interest Unpaid Balance
0         $3,500
1 $419.88 $294.33 $125.55 $125.55 $3,205.69
2 $419.88 $305.49 $114.39 $239.94 $2,900.22
3 $419.88 $317.10 $102.78 $342.72 $2,583.15
4 $419.88 $329.11 $90.77 $433.49 $2,254.05
5 $419.88 $321.26 $78.26 $511.75 $1,912.47
6 $419.88 $354.58 $65.30 $577.05 $1,557.92
7 $419.88 $368.02 $51.86 $628.91 $1,189.92
8 $419.88 $381.99 $37.89 $666.80 $807.96
9 $419.88 $396.48 $23.40 $690.20 $411.50
10 $419.88 $411.52 $8.36 $698.56 $0

Learn more about Federal Direct Subsidized and Unsubsidized loans for undergraduate students at studentaid.gov.


Title IV Student Loan Code of Conduct:

Title IV is federal financial aid funding. Qualified institutions participate in the administration of Title IV funding on behalf of the federal government. Students apply for federal financial aid funding (Title IV funds) by filing a FAFSA each year. File at fafsa.gov.

Any institution that participates in any Title IV loan program must develop, publish, and enforce a student loan Code of Conduct. The Code of Conduct prohibits conflicts of interest with the responsibilities of the institution's officers, employees and agents related to Title IV loans.

Stockton University's Title IV Student Loan Code of Conduct is below.

The institution’s Code of Conduct includes a ban against each of the following:

  • Employees shall not enter into revenue-sharing arrangements with any lender, including Title IV or private education loan lenders;
  • Employees shall not accept gifts from a lender, guaranty agency, or loan servicer;
  • Employees shall not accept any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for consulting or other contractual arrangement to provide education loan related services;
  • Employees shall not steer a first-time borrower’s loan to a particular lender through packaging or any other method (for example, the school’s website or publications);
  • Employees shall not refuse or delay certification of any loan based on a borrower’s lender selection;
  • Employees shall not request or accept from any lender offers of funds for making private education loans (including opportunity pool loans) in exchange for providing concessions or promises for providing a specific number or volume of private loans, or for private loan preferred arrangements;
  • Employees shall not accept call center or financial aid office staffing assistance from any lender, except under certain limited circumstances specified in statute and regulation; and
  • Employees shall not accept compensation for service on advisory boards, commissions, or groups established by a lender or guarantor (or a group of lenders or guarantors), except for reimbursement of reasonable expenses incurred for such service.


*Employees encompass financial aid office or other school employees with financial aid or education loan-related responsibilities.

The University shall enforce the above Code of Conduct by annually informing employees of the provisions listed.

Students seeking private/alternative loan options can explore a list of frequently used lenders here.

The lenders and loan options presented include lenders who made a loan at the school within two academic years.

The University does not participate in any perferred lender arrangements. You are free to choose any lender, including those not presented. If you choose a lender that is not presented, please contact the Office of Financial Aid. Application processing will not be delayed unnecessarily if you choose a lender not presented.

Our officials are prohibited from accepting any financial or other benefits in exchange for displaying lenders and loan options in FASTChoice. Prohibited activities include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution's financial aid office; allowing lenders to place our institution's name or logo on any of their products; and owning of lenders' stock (for college officials who make financial decisions for our institution).