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Federal Direct Stafford Loans
Student loans have varying repayment terms and interest rates and must be repaid. The interest rates listed below are the standard rates for the 2018-19 academic year; however, the promissory note is the final word on the correct rate.
MassArt participates in the William D. Ford Federal Direct Loan Program. The Direct Loan Program is a federal student aid program administered by the Department of Education. Students borrow directly from the U.S. Department of Education, and repay to an approved Federal Student Aid Loan Servicer, while MassArt's Office of Student Financial Assistance originates and processes the loan. Graduate students are eligible to borrow up to $20,500 in a Federal Direct Unsubsidized Stafford Loan in one academic year.
Federal Direct Unsubsidized Stafford Loan
A Federal Direct Unsubsidized Stafford Loan is provided to all graduate students regardless of financial need. The student is responsible for the interest accruing while he/she is enrolled in school, during grace periods, and during authorized deferment periods. During this time, students may either pay the accumulating interest or capitalize the interest. Capitalization means the unpaid interest will be added to the principal balance of the loan at the beginning of the repayment period. The current interest rate for Unsubsidized Stafford Loans for the 2018-2019 school year is fixed at 6.6 percent.
Direct Stafford Loans have a 1.066 percent origination fee if disbursed on or after 10/1/17. For loans disbursed on or after 10/1/18, the origination fee is 1.062 percent. The origination fee is subtracted from the loan before disbursement.
Repayment begins six months after the student graduates, withdraws from the college, or drops to less than half-time enrollment. In order to receive a Stafford Loan, a student must be enrolled for at least six credits per semester and must be maintaining satisfactory academic progress.
At MassArt, we counsel students to only borrow federal loans and to seek alternative loans as a last resort. For the class of 2010, 69.8 percent of students borrowed to help with educational costs. For graduate students, the average amount borrowed was $52,428. The graduate median amount was $50,893.
Graduate Federal Stafford Loan Limits
|Grade Level||Combined Annual Stafford Loan Limit||Aggregate Stafford Loan Limit|
(Lifetime Stafford Loan Limit)
(no more than $65,000 may be subsidized)