Federal Stafford Loans
(for students) |
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Federal Stafford Loans are
low-interest loans made to undergraduate or graduate students
attending school on at least a half-time basis. These loans
are made in the student borrower's name. All borrowers must
complete a Free Application for Federal Student Aid (FAFSA).
Awards may not exceed the cost of the education minus other awarded
financial aid. For subsidized undergraduate loans disbursed on
or after July 1, 2008, the interest rate is a fixed 6.0%.
There are two types:
- Subsidized -
Eligibility is based on
financial need as determined by information provided on your FAFSA. The federal government pays interest on the loan until
repayment.
- Unsubsidized -
Eligibility is not
based on financial need. You are responsible for paying the
interest, although payment may be deferred while you are in
school.
ANNUAL LOAN LIMITS |
Dependent Students
(except students whose parents cannot borrow a PLUS
Loan) |
|
Classification |
Base
amount |
Additional unsubsidized
loan amount |
| Freshman |
$3,500 |
$2,000 |
| Sophomore |
$4,500 |
$2,000 |
| Junior or Senior |
$5,500 |
$2,000 |
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Independent Undergraduate Students and
Dependent Students whose parents cannot borrow a PLUS
Loan |
|
Classification |
Base
amount |
Additional unsubsidized
loan amount |
| Freshman |
$3,500 |
$6,000 |
| Sophomore |
$4,500 |
$6,000 |
| Junior or Senior |
$5,500 |
$7,000 |
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Graduate and Professional Students |
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Classification |
Base
amount |
Additional unsubsidized
loan amount |
| Graduate or Professional |
$8,500 |
Unchanged at $12,000 |
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AGGREGATE STAFFORD LOAN LIMITS |
|
Classification |
Loan Limit |
| Dependent Undergraduate |
$31,000 (no more than
$23,000 of which can be subsidized) |
| Independent Undergraduate |
$57,500 (no more than
$23,000 of which can be subsidized) |
| Graduate and Professional |
$138,500 (no more than
$65,500 of which can be subsidized) |
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Stafford Loan Fees and Interest Rate
There are two federal fees associated with a
Stafford Loan which will be deducted from the amount you borrow.
For loans disbursed on or after July 1, 2008:
Stafford subsidized undergraduate loans disbursed on
or after July 1, 2008, have a fixed interest rate of 6.0% set by the
federal government.
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your student loan.
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