If you apply for financial aid, you may be offered loans as part of your financial aid offer. A loan is money you borrow and must pay back with interest. In addition to receiving scholarships and grants, loans allow you and/or your parent(s) to borrow additional money to help with your investment in your future.
Direct Stafford Loans
You must be enrolled in at least six credits to receive Stafford Loans.
Subsidized
Federal Subsidized Direct Stafford Loans are need-based loans that must be repaid. The federal government pays interest while enrolled at least half time.
Interest: 5.50% (Rate from July 1, 2023-July 1, 2024)
Fees: 1.057% origination fee (October 1, 2020–October 1, 2024)
1.059% origination fee (October 1, 2019–October 1, 2020)
Grace Period: 6 months
Unsubsidized
Federal Unsubsidized Stafford Loans are non-need-based loans that must be repaid. Interest is charged from the time you receive the funds.
Interest: 5.50% (Rate from July 1, 2023-July 1, 2024)
Fees: 1.057% origination fee (October 1, 2020–October 1, 2024)
1.059% origination fee (October 1, 2019–October 1, 2020)
Grace Period: 6 months
Dependent | Independent |
First year: $5,500 | First year: $9,500 |
Second year: $6,500 | Second year: $10,500 |
Third year+: $7,500 | Third year+: $12,500 |
- Aggregate Subsidized Loan Limit: $23,000
- Combined Aggregate Subsidized & Unsubsidized Loan Limit: Dependent – $31,000; Independent – $57,500
To check your current federal loan balance you can go to: https://studentaid.gov/. You will need your FSA ID to login.
Stafford Loan Process
- Student accepts or declines awards.
- Student completes Stafford Loan Entrance Counseling.
- Student signs a Master Promissory Note. You will need your FSA ID to sign electronically.
- Federal regulations require two equal disbursements within a loan period. If you have a loan for the full year, the two disbursements will be fall and winter sessions. If you are enrolled for only one semester your loan will be split into two equal payments within the semester.
- When Northland College receives your loan disbursements, they are applied to your student account.
For additional information on federal student loans please visit Federal Student Aid.