Facebook pixel Federal Stafford Loans | Pepperdine Graziadio Business School Skip to main content
Pepperdine | Graziadio Business School

Federal Stafford Loans

The Subsidized Stafford Loan is interest-free to the student. The subsidized loan is paid by the federal government while the student is enrolled in school for at least half time. This includes 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
(per two-term period)
Aggregate Loan Limits

Subsidized Stafford Loan

Unsubsidized Stafford Loan


(minus any Subsidized Stafford amount)



Plus Loan-Parent Loan (cost of attendance minus any other financial aid)  

Undergraduate Independent Students:

Loan Annual Loan Limits
(per academic year)
Aggregate Loan Limits
Subsidized Stafford Loan



Unsubsidized Stafford Loan

(minus any Subsidized Stafford amount)



How To Apply

To apply for a student loan, students must complete the Free Application for Federal Student Aid. Please refer the link for form completion (FAFSA).

Interest Rate Chart


All Direct Subsidized and Unsubsidized loans have upfront origination fees.

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 up to 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 Direct Consolidation Loan program, a lender buys all of your eligible loans and combines them into one new loan. This allows you to combine multiple loans into one. Instead of paying multiple payments, this results in a single monthly payment  Loan consolidation can also provide you access to additional loan repayment plans and forgiveness programs.


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.