We know the importance of an education. We also know the cost. Our Federal Stafford Loan Program is designed to help
you along the way. With this program, its your loan. You, the student, are the borrower.
Am I eligible?
Undergraduate or graduate students enrolled at least half-time in an eligible program may borrow.
What types of Stafford Loans are there?
Subsidized Loans:
- Eligibility for subsidized loans is based on financial need.
- The interest is paid by the federal government while the borrower is enrolled at least half time,
during the grace period and periods of deferment.
- Repayment of both principal and interest begins after the grace period.
Unsubsidized Loans:
- Are not based on financial need.
- Awarded by calculating:
Cost of attendance
- (MINUS) Other financial aid you're expected to receive (including a subsidized Federal Stafford Loan)
= (EQUALS) Unsubsidized Federal Stafford Loan eligibility (not to exceed the program loan limit maximums)
- The borrower is responsible for paying the interest from the date the funds are disbursed. The interest may be paid or it may be accrued and added to the principal balance of the loan.
- Repayment of principal begins after the grace period.
How much can I borrow?
The maximum annual limits for undergraduate and graduate students are monitored by your college; and based on federal regulations. Loan Limits are also determined by your academic level and IRS tax status. Chose the appropriate link below for loan limit charts of loans disbursed on or before June 30, 2007 and loans disbursed on or after July 1, 2007.
Loan limits Undergraduate Student Dependent
Loan limits - Undergraduate Students Independent
Loan limits - Graduate Students
The financial aid administrator of the college you are attending determines and certifies your actual loan amount up to the limit.
When do I have to repay the loan?
- Repayment of principal begins six months after your enrollment status drops below half time.
- In certain situations, your payments can be temporarily postponed or reduced through
deferment or forbearance.
- The repayment of your loan can be up to ten years.
What is the interest rate?
-
New Federal Stafford Loans have a fixed interest rate and interest will accrue from the date of first disbursement. The current rates are as follows:
- Subsidized
- Undergraduate - 6.00%
- Graduate - 6.80%
- Unsubsidized
- Undergraduate - 6.80%
- Graduate - 6.80%
- Previous Federal Stafford Loans (disbursed prior to 6/30/06) have a variable interest rate, based on the
91-day Treasury Bill + 2.3%, and are adjusted annually on July 1.
These loans cannot exceed 8.25 %,
The current interest rates for these loans are as follows:
- 3.61 %
for in-school, deferment or grace periods.
- 4.21 % for repayment or forbearance.
