Federal Direct Stafford Loans (Subsidized & Unsubsidized)

  • Students must be awarded financial aid to accept loans
  • Students must be enrolled at least half-time to be eligible for loans (6 units Undergraduate/Credential; 4 units Graduate/Professional)
  • Students who are auditing classes or taking classes for "no credit" are not eligible for any financial aid towards those registration fees.

December 1, 2018

Deadline to accept loans for Fall 2018

April 26, 2019 

Deadline to accept loans for the academic year, or Spring only loans. 

Direct Subsidized Loans

Offered to undergraduate and credential students based on demonstrated financial need. Graduate and professional students are not eligible for the Subsizided Loan as of July 1, 2012. 

The interest on the loan is paid by the Department of Education as long as the student maintains half-time enrollment (6 units); or during the 6 months grace period*, or if the student has not exceeded his or her maximum time frame**.

*Grace period: Students who received a Direct Subsidized loan that was first disbursed between July 1, 2012, and July 1, 2014, are responsible for paying interest that accrues during the grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

**Maximum time frame: If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized loans. This limit does not apply to Direct Unsubsidized loans or Direct PLUS loans.

If this limit applies, you may not receive Direct Subsidized loans for more than 150 percent of the published length of your program. This is called your "maximum eligibility period." Your maximum eligibility period is based on the published length of your current program. You can find the published length of your program in the school catalog.

Direct Unsubsidized Loan

Offered to all eligible undergraduate and graduate students, even those not demonstrating financial need. The Direct Unsubsidized Loan should be borrowed cautiously since the borrower will be responsible for paying all the interest on the loan.  

Interest will begin accruing after the first disbursement even though payment is not required until six months after graduating or dropping below half-time status. Interest only payments may be made while in school, but it is not required. If interest is not paid while in school, the interest is capitalized (added to the original loan amount) once repayment begins.

Terms and Conditions

  1. All previous federal loans must be in good standing.
  2. No Grants in overpayment status.
  3. Complete the Master Promissory Note (MPN). A new MPN is necessary if it has been more than 10 years since the last MPN was completed.
  4. Complete Entrance Loan Counseling (ELC). First-time student loan borrowers at SJSU must complete the ELC.
  5. Must be enrolled in, and successfully complete, at least half-time enrollment (6 units for Undergraduate, Post-baccalaureate, Credential; 4 units for Graduate students). 
  6. Academic progress must be in good standing with Financial Aid.
  7. Students who are academically disqualified from the University, attending Open University, or enrolled less than half time, are not eligible for Federal Direct Stafford Loans.
  8. Complete Exit Loan Counseling within sixty (60) days of the last date of attendance at SJSU. 

Repayment Information

  • Repayment begins six months after graduation or after enrollment drops below half-time.
  • For the Unsubsidized Loan, any interest accrued will be capitalized. Students are responsible for interest accrued.
  • Federal student loans cannot be discharged through bankruptcy.

Additional Information

To retrieve loan history information, view the National Student Loan Data System (NSLDS).