Students enrolled in a Title IV eligible program at MUD may apply for a Subsidized Federal Stafford Loan. The Subsidized Federal Stafford Loan is a need-based loan. The interest rate is fixed at 4.5%. The federal government pays the interest that accrues on the Subsidized Stafford Loan while the student is in school, during the six month grace period, and during periods of authorized deferments. A loan origination fee will be assessed. Repayment begins following a six month grace period. The grace period will begin after enrollment ceases or the student drops below half-time enrollment. Minimum monthly payment is $50 per month. Standard repayment period is ten years.
To apply for a Subsidized Federal Stafford Loan, the student must first complete a Free Application for Federal Student Aid (FAFSA) which will be used to determine borrower eligibility. The student must also complete a Master Promissory Note. First-time Stafford Loan borrowers must complete entrance counseling. All students who borrow a Stafford Loan are required to attend exit counseling.
