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Federal Direct Loan Borrower Instructions

  1.  You are required to accept the Federal Direct Loan via YOUR CONNECTIONClick here for instructions on accepting / declining your aid.
  2. All first-time borrowers at Fredonia must complete Entrance Counseling
    • Go to and click on the "In School" tab.  Under "Popular Topics click on "Complete Loan Entrance Counseling". 
    • Log in using your FSA ID, used to sign the FAFSA. 
  3. All first-time borrowers at Fredonia must complete a Loan Agreement (Master Promissory Note).  
    • Go to and click on the "In School" tab.  Under "Popular Topics click on "Complete a Loan Agreement (Master Promissory Note)". 
    • Log in using your FSA ID, used to sign the FAFSA.  

Please allow 2-3 weeks processing time from the point of accepting your Stafford loans.

Per federal regulation Federal Direct Loans must be accepted prior to the end of each academic year otherwise they can't be processed.

All steps listed above must be completed in order for your Stafford Loan to be applied to your account.

*Students must be enrolled for a minimum of 6 credits to be eligible for Federal Direct loans.

Federal Direct Subsidized Loan

You are eligible for a subsidized Direct Loan if you are in school at least half-time and have financial need.  With a subsidized Direct Loan, the federal government will pay the interest while you're enrolled at least half-time.  

150% Subsidized Usage Limit
Please note, there is a limit on the maximum period of time (measured in academic years) that a First-Time Borrower on or after July 1, 2013 can borrow in a subsidized Direct Loan.  In general, a First-Time Borrower on or after July 1, 2013 may not receive Direct Subsidized Loans for more than 150% of the published length of the academic program.

Federal Direct Unsubsidized Loan

Unsubsidized Direct Loans are for students who do not have financial need.  With an unsubsidized Direct Loan, you are responsible for paying the interest during all periods, starting from the date the loan is first disbursed.

Origination Fees

First Disbursed
On or After
Origination Fee
Loans with 1st disbursement after 10/1/2021 1.057%

Interest Rates

1st Disbursed
On or After
And BeforeInterest Rate
July 1, 2023June 30, 20245.49% Subsidized and Unsubsidized
July 1, 2024June 30, 20256.533% Subsidized and Unsubsidized 

* All Graduate Direct Unsubsidized Loans have a 7.05% interest rate for the 2023 - 2024 academic year and a 8.083% interest rate for the 2024-25 academic year.

Annual Loan Limits

Year/ClassificationBase AmountAdditional Unsubsidized LoanTotal
Dependent Students   
Junior or Senior$5,500$2,000$7,500
Independent Students   
Junior or Senior$5,500$7,000$12,500
Graduate Students$8,500$12,000$20,500


Aggregate Loan Limits

  • Undergraduate Dependent Students: $31,000 (no more than $23,000 Subsidized Direct Loan)
  • Undergraduate Independent Students: $57,500 (no more than $23,000 Subsidized Direct Loan)
  • Graduate Students: $138,500 (no more than $65,500 Subsidized Direct Loan)

Helpful Links

Loan Agreement

Entrance Counseling

Exit Counseling

Direct Loan Exit Counseling Guide (PDF)

Direct Loan Applicant Services
Phone No: 800.557.7394
Fax: 877.623.5082

Direct Loan Borrower Services

Direct Loan Consolidation

Financial Aid Office

  • 209 Maytum Hall State University of New York at Fredonia Fredonia, NY 14063

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