The Federal Direct Stafford (Subsidized & Unsubsidized) Loan Program is the primary source of financial aid for most Georgetown Law students. Important facts about the Federal Direct Stafford Loan Program:

• Students may apply for up to $20,500 per year in the Federal Direct Subsidized/Unsubsidized Stafford Loan Program.
• There is a lifetime aggregate Stafford loan limit of $138,500.
• Based on a federal formula, up to $8,500 may be borrowed as a Federal Direct Subsidized Stafford Loan; the remainder may be borrowed as a Federal Direct Unsubsidized Stafford Loan.
• Interest is not charged on the subsidized portion while the student is enrolled at least half-time, however, interest is charged on the unsubsidized portion and can either be paid by the student while in school or accrued and capitalized at repayment (six months after either graduation or after the student ceases to be enrolled at least half-time).
• The interest rate is fixed at 6.8%.
• There is a 1% origination fee on Direct Stafford loans.  One half of this fee is initially rebated to borrowers, resulting in a net initial origination fee of 0.5%.  Borrowers retain eligibility for the rebate through qualifying performance during repayment.
• These loans are generally disbursed in two installments, half at the beginning of each semester.
• Payments are made over a 10-year period, unless the borrower extends the repayment period to up to 25 years (based on total loan volume borrowed).  Stafford loans may be included in a Federal Direct Consolidation Loan (which have a payment period of up to 30 years).

 

Arrival of Funds

• Funds arrive electronically and are posted to the student's account no sooner than just prior to the start of classes.
• If the student owes Georgetown Law, funds will be applied first to the outstanding account balance (tuition, housing, and other authorized charges) and the excess will be refunded though the Student Accounts Office.