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1701 North State Street Jackson, MS 39210-0001 (800)352-1050 (601)974-1000
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Federal Direct Subsidized and Unsubsidized Stafford Loans are long-term, low-interest loans from the U.S. Department of Education.
To receive a Federal Loan, you must file the annual FAFSA.
The Subsidized Direct Loan is need-based. The federal government pays the interest on the loan during: (1) your enrollment in school on at least a half time basis, (2) a six-month grace period immediately following your separation from school, and (3) a deferment, which is a temporary, authorized time when your payments may be postponed.
The Unsubsidized Direct Loan is non-need-based. "Unsubsidized" means the federal government does not pay the interest on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You either may choose to pay the accumulated interest while you are in school, or to have the unpaid, interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.
Only borrow what you need. Make a budget for yourself to keep your debt within manageable limits.
Your award package may include a combination of Subsidized and Unsubsidized loans.
The amount in Direct Loan funds that you are eligible to borrow each academic year is limited by (1) your grade level (2) whether you are a dependent or an independent student, (3) your financial need, and (4) your cost of attendance. You cannot borrow more than your financial need or the cost of attendance (your budget.)
| Dependent Student | Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
| Freshman | $3,500 | $2,000 | $5,500 |
| Sophomore | $4,500 | $2,000 | $6,500 |
| Junior/Senior | $5,500 | $2,000 | $7,500 |
| Prep Coursework for entry into an Undergraduate Program | $2,625 | 0 | $2,625 |
| Teacher Certification Coursework or Prep Coursework for entry into a Graduate/Professional Program | $5,500 | 0 | $5,500 |
| Independent Student (and Dependent Students Whose Parents are Denied a PLUS Loan) | Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan |
Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
| Freshman | $3,500 | $6,000 | $9,500 |
| Sophomore | $4,500 | $6,000 | $10,500 |
| Junior/Senior | $5,500 | $7,000 | $12,500 |
| Prep Coursework for entry into an Undergraduate Program | $2,625 | $6,000 | $8,625 |
| Teacher Certification Coursework or Prep Coursework for entry into a Graduate/Professional Program | $5,500 | $7,000 | $12,500 |
| Graduate Student | Base Amount (Subsidized or Unsubsidized) |
Additional Unsubsidized Loan | Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
| $8,500 | $12,000 | $20,500 |
Lifetime Aggregate Loan Limits
Undergraduate Dependent Students can borrow a maximum total of $31,000 (of which no more than $23,000 can be subsidized loans).
Undergraduate Independent Students can borrow a maximum total of $57,500 (of which no more than $23,000 can be subsidized loans).
Graduate/Professional Students can borrow a maximum total of $138,500 (of which no more than $65,500 can be subsidized loans). Allopathic Medicine and other graduate students in certain health professions may borrow a maximum of $224,000 (of which no more than $65,500 can be subsidized). These graduate loan limits include all loans borrowed as an undergraduate.
Over a four-year period beginning July 1, 2008, the interest rate on Subsidized Loans made to undergraduate students will be reduced. These rates do not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. The applicable interest rates for loans made during this period are as follows:
| UNDERGRADUATE STUDENTS - First disbursement of a loan: | Interest Rate on the Unpaid Balance of the Subsidized Loan | Interest Rate on the Unsubsidized Loan Balance | |
| Made on or after | And made before | ||
| July 1, 2008 | July 1, 2009 | 6.0 percent | 6.8 percent |
| July 1, 2009 | July 1, 2010 | 5.6 percent | 6.8 percent |
| July 1, 2010 | July 1, 2011 | 4.5 percent | 6.8 percent |
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July 1, 2011 |
July 1, 2012 | 3.4 percent |
6.8 percent |
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July 1, 2012 |
July 1, 2013 | 3.4 percent |
6.8 percent |
| GRADUATE STUDENTS | Interest rate of loans disbursed after July 1, 2006 |
| 6.8 percent |
For Federal Direct Subsidized and Unsubsidized Loans disbursed on/after July 1, 2012, there will be a federal loan fee of 1%.
Entrance loan counseling is required for first-time Federal Loan borrowers. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. Loan counseling must be completed before you can receive loan funds.
Subsidized and Unsubsidized (Stafford) Loan Entrance Counseling
Loan Promissory Note
As a Federal Direct Loan borrower, you must sign a Master Promissory Note (MPN) before your loan can be disbursed. The Federal Direct Loan MPN is valid for 10 years. You have to sign a Loan MPN only once while you are enrolled at Millsaps College.
All students who wish to borrow Federal Subsidized and Unsubsidized Loans will be required to complete a Federal Direct Loan Master Promissory Note. Complete a Direct Loan Master Promissory Note.
Direct Loan Servicing Web Site: https://www.myedaccount.com
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