Northern Illinois University

Financial Aid

William D. Ford Federal Direct Stafford Loans

Federal Direct Stafford Loans (FDSL) are low interest loans that are borrowed through the U.S. Department of Education by the student. Both Subsidized and Unsubsidized Direct Stafford Loans have a 6.8% fixed rate of interest. Repayment of the principal amount begins 6 months after the student graduates, leaves school, or drops to less than half-time per semester. Undergraduate half-time enrollment = 6 hours per semester excluding audits, Graduate half-time enrollment = 4.5 hours per semester excluding audits.

There are 2 types of Direct Stafford Loans:

  • Subsidized Direct Stafford Loan - awarded on the basis of financial need. The government will pay the interest on this loan while the student is attending school at least half-time per semester.
  • Unsubsidized Direct Stafford Loan - not awarded on the basis of need. The student is responsible for the interest payments from the time the loan is disbursed.

Loan Limits

Students who want to borrow through the Federal Direct Stafford Loan program must be enrolled in at least half-time per semester and cannot exceed their loan limit for the academic year and their cumulative Stafford Loan limits. Independent students and dependent students whose parent is denied a Direct PLUS loan may be eligible to borrow additional Direct Unsubsidized Stafford loan amounts. The limit is determined by academic status and academic year. However, the annual maximum loan amount an undergraduate student may borrow must be prorated in certain situations:

  • when the student is enrolled in a program that is shorter than a full academic year, and
  • when the student is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter that a full acadmic year.

Note: students who are concurrently enrolled in a class(s) that will go towards their NIU degree should follow the directions on the Concurrent Enrollment Information Sheet. This could increase your prorated loan amount if you qualify.
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Prorating Annual Loan Limits for Direct Stafford Loans (Undergraduate Only)

Proration is primarily used to calculate loan amounts when the student will be graduating at the end of fall semester.

Based on 2008-2009 Loan Limits


Proration is determined by:

Credit hours you are enrolled in program
Semester hours in an academic year (30)

Proration example for a senior who is enrolled in 6 credit hours for the fall semester who will be graduating in December:

Divide the number of credit hours you are enrolled in for the semester (6) by the total semester hours in a year (30) and multiply that number (0.2) by the yearly maximum amount of Subsidized/Unsubsidized Stafford Loan eligibility ($5500/$2000 or $7000) for a senior. The calculated amount of $1100 is the prorated Subsidized Stafford Loan amount for the fall semester.
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Prorated Loan Limits

Credit Hours/Semester
Prorated Subsidized Stafford Loan Only Prorated Additional Unsubsidized for Dependent Students (except PLUS Denial Students) Prorated Unsubsidized Stafford Loan (for Independent or PLUS Denial Students)
21/30 $3850 $1400 $4900
20/30 $3667 $1333 $4667
19/30 $3483 $1267 $4433
18/30 $3300 $1200 $4200
17/30 $3117 $1133 $3967
16/30 $2933 $1066 $3733
15/30 $2750 $1000 $3500
14/30 $2567 $933 $3267
13/30 $2383 $867 $3033
12/30 $2200 $800 $2800
11/30 $2017 $733 $2567
10/30 $1833 $667 $2333
9/30 $1650 $600 $2100
8/30 $1467 $533 $1867
7/30 $1283 $467 $1633
6/30 $1100 $400 $1400

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Annual Stafford Loan Amounts

2007-2008 & 2008-2009 Academic Year Loan Limits
Prior to July 1, 2008


Academic Level
Subsidized/ Unsubsidized Dependent & Independent
Additional Unsubsidized (for Independent Students & PLUS Denial Students)
Total
Freshman $3500 $4000 $7500
Sophomore $4500 $4000 $8500
Junior/Senior $5500 $5000 $10,500
Post Graduate $5500 $5000 $10,500
Eligible Student-At-Large & Post Graduate pursuing a teachers certification $5500 $7000 $12,500
Graduate and Professional $8500 $12,000 $20,500

Cumulative Stafford Loan Limits

Undergraduates:

Dependent Student $23,000 Subsidized
Independent Student $46,000 (combination of Subsidized and Unsubsidized)
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Graduates:

$65,500 Subsidized/$73,000 Unsubsidized
$138,500 (combination of Subsidized and Unsubsidized)
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2008-2009 Academic Year Loan Limits
Effective July 1, 2008

Academic Level
Subsidized/ Unsubsidized Dependent & Independent Additional Unsubsidized for Dependent Students (except PLUS Loan Denial Students)
Additional Unsubsidized for Independent Students & PLUS Denial Students)
Total for Dependent Students (except PLUS Denial Students) ) Total for Independent Undergraduates & PLUS Denial Students
Freshman $3500 $2000 $6000 $5500 $9500
Sophomore $4500 $2000 $6000 $6500 $10,500
Junior/Senior $5500 $2000 $7000 $7500 $12,500
Post Graduate $5500 $2000 $7000 $7500 $12,500
Eligible Student-At-Large & Post Graduate pursuing a teachers certification $5500 Unchanged $7000 $12,500 $12,500
Graduate and Professional $8500 Unchanged $12,000 $20,500 $20,500

Cumulative Stafford Loan Limits Effective July 1, 2008

Undergraduates:

Dependent Student $31,000 (no more than $23,000 of which can be Subsidized)
Independent Student $57,500 (no more than $23,000 of which can be Subsidized )
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Graduates:

$65,500 Subsidized/$73,000 Unsubsidized
$138,500 (combination of Subsidized and Unsubsidized)

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Download the NIU Loan Borrower Information Sheet

Get an estimate of monthly loan payments with the Loan Calculator from FinAid.

Before Funds Can be Disbursed