Financial Aid
Federal Stafford Loans
The Federal Stafford Loan is a loan made by a bank or a private lending agency to a student to be used for education-related expenses. There are two programs in the Federal Stafford Loan: Subsidized and Unsubsidized.
The Subsidized Stafford Loan is interest-free to the student (the government pays the interest) while the student is enrolled in school at least half time, during the grace period, and during periods of authorized deferment.
The Unsubsidized Stafford Loan is not interest-free at any time. However, the interest and principal payments may be deferred while the student is in school at least half time, during the grace period, and during authorized periods of deferment. If the interest payments are deferred, the interest will continue to accrue and will be added (capitalized) to the principal balance once repayment begins.
Federal Stafford Loan Limits
Undergraduate Dependent Students (determined by FAFSA):
|
Loan |
Annual Loan Limits |
Aggregate Loan Limits |
|---|---|---|
|
Subsidized Stafford Loan Unsubsidized Stafford Loan |
$5,500 $7,500 |
$23,000 $31,000 |
| Plus Loan-Parent Loan | (cost of attendance minus any other financial aid) |
Undergraduate Independent Students:
|
Loan |
Annual Loan Limits |
Aggregate Loan Limits |
|---|---|---|
| Subsidized Stafford Loan |
$5,500 |
$23,000 |
| Unsubsidized Stafford Loan |
$12,500 |
$57,500 |
How To Apply
To apply for a student loan, students must complete the Free Application for Federal Student Aid (FAFSA).
Fees
For all Direct Subsidized and Unsubsidized Stafford loans for which the earliest disbursement is on or after July 1, 2011, the origination fee is 1% and the up-front rebate remains at 0.5%.
No Prepayment Penalty
The Stafford Loan can be repaid in full or in part at any time without penalty. Prepayments are applied first to any accrued interest and then to the loan principal.
No Credit Check
Because the Stafford Loan is guaranteed by the federal government to the bank, there is no credit check required for students. However, the student cannot be in default on a prior student loan.
Grace Period
Both loan types have a grace period which means the student does not have to begin making payments until six months after graduating or dropping below half-time attendance.
Repayment Options
The Stafford Loan is repaid over a ten-year period following the end of the grace period. There are three types of payments available to students. In order to request a specific repayment option, please contact your lender.
- Standard repayment (the same payment every month for up to ten years)
- Graduated repayment (the payment starts small and gradually increases over the ten-year time frame)
- Income-sensitive repayment (the payment is dependent upon your income and is adjusted each year for up to ten years)
- Extended repayment (the eligible borrowers receive payment relief through a lengthened repayment term of upto 25 years.
- Consolidation (the federal consolidation loan program allow borrowers to refinance one or more federal education loans and significantly lower their monthly repayment by extending the payback period. The original loans are paid-in-full, and a new loan for the combined balances is issued with new terms, including a new, low interest rate that is fixed for the life of the loan.)
Loan consolidation (Through the Consolidation Loan program, a lender buys all of your eligible loans and combines them into one new loan)
The federal government offers deferments on this loan for periods of
- Enrollment in school
- Study in a graduate fellowship program
- Rehabilitation training program for disabled individuals
- Unemployment
- Economic hardship
Please contact your lender to request the appropriate forms.
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