Loans

The Federal Direct Stafford Loan is a low-interest loan with flexible repayment options you borrow from the federal government.

Eligibility 

• Available to undergraduate students who complete the FAFSA
• Must be enrolled at least half-time per semester (6cr for Undergraduate and 5 cr for Graduates)
• No credit check required
• Cannot receive additional Stafford Loan proceeds if you are in default on a previous federal student loan, such as Perkins Loans, PLUS Loans, or Federal Direct Stafford Loans.
• New borrowers must accept their loans on BannerWeb and complete Entrance Counseling and a Master Promissory Note online at https://studentaid.gov/ before loan proceeds will be disbursed. 

Both are a fixed rate, meaning it will never change from the moment you take out the loan. These interest rates are valid until June 30th, 2026. 

Types of Federal Direct Stafford Loans

Subsidized: Must have financial need as designated on the FAFSA

Interest free during certain timeframes, such as:

• Half-time enrollment (or more) per semester (6cr +)
• During the grace period -the first six months after you leave school
• During deferment (a postponement of loan payments with certain criteria)

Unsubsidized: interest accumulates from the time funds are disbursed to the school

• Payment of accrued interest while in school will reduce the amount accumulated at graduation/less than half-time status but is not required

The fixed interest rate for loans borrowed during the 2025-2026 year is 6.39%. For Graduate students using an Unsubsidized loan, the fixed interest rate is 7.94%.

Maximum Amounts

The amount of Federal Direct Stafford Loans you may borrower per year depends on if you’re a freshman, sophomore, junior or senior.

Freshmen: Maximum of $5,500 per year (only up to $3,500 can be subsidized)

Sophomores: Maximum of $6,500 per year (only up to $4,500 can be subsidized)

Juniors/Seniors: Maximum of $7,500 per year (only up to $5,500 can be subsidized)

Repayment

Repayment of your Stafford Loan(s) begins six months after you graduate or drop below half-time status per semester. Students must also complete exit counseling upon leaving the College.

For additional information on Federal Stafford Loans, please visit https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized          

The Federal Parent PLUS Loan is a loan that parents of undergraduate students can use to cover costs that aren’t covered by other forms of financial aid.

Eligibility 

• Available to biological/adoptive parent(s) or a step-parent whose information is listed on the current year FAFSA for a dependent undergraduate
• Student must be enrolled at least half-time per semester (6cr for Undergraduates)
• Credit check required
• Must apply each academic year
• Cannot receive additional PLUS Loan proceeds if you are in default on a previous federal student loan, such as Perkins Loans, PLUS Loans, or Federal Direct Stafford Loans.
• Parent borrowers must complete a loan application and Master Promissory Note online at https://studentaid.gov/  before loan proceeds will be processed/disbursed. 

Parent PLUS Loan Denials

For Parent PLUS Loan borrowers who are not approved for PLUS Loan proceeds there are a few options.

• The student will automatically receive an additional Unsubsidized Stafford Loan amount added to their award. Freshmen/Sophomores may receive up to $4,000 per year and Juniors/Seniors may receive up to $5,000 per year in additional Unsubsidized Stafford Loan.

Maximum Awards

The maximum amount that a parent may borrow in a Federal Direct PLUS Loan is based on the Cost of Attendance minus all aid received. 

                    COA – Aid = Maximum PLUS Loan.

Repayment 

Repayment of your Parent PLUS Loan begins 60 days after the final disbursement is sent to the school. Parent borrowers can request to defer their PLUS Loan while the student is enrolled at least half-time status each semester. 

The fixed interest rate for loans borrowed during the 2025-2026 year is 8.94%. This interest rate is valid until June 30th, 2026.

Private student loans are loans you borrow from a private bank or lender, not the federal government. Unlike the Federal Direct Stafford Loan or the Federal Direct Parent PLUS Loan, you don’t need to complete a FAFSA to apply. However, private lenders will vary in their interest rates, loan terms, and eligibility requirements. Carefully research each lender and the loans they offer to figure out which one is best for you. Guilford College has compiled a list of lenders for you to review at ELMSelect.

The Higher Education Opportunity Act of 2008 (HEOA) requires that institutions participating in the federal student loan programs develop, publish, and enforce a code of conduct with respect to student loans. Guilford College is committed to the highest standard of ethics and conduct and therefore, the staff of the Financial Aid Office is bound by the institution’s Code of Conduct and Ethics for Business Activities. In addition, all staff of the Office of Student Financial Services has signed a statement acknowledging and pledging to follow NASFAA’s Code of Conduct. Read the NASFAA Statement of Ethical Principles and Code of Conduct for Institutional Aid Professionals.