Subsidized Stafford Loans

• This is a need-based loan.
• Interest on the loan is paid by the federal government while you are in school, during your grace period, and during authorized periods of deferment.
• The interest rate is fixed at 6.8%.
• You must be enrolled at least half-time to qualify.
• Repayment begins six months after you are no longer enrolled on at least a half-time basis.

Unsubsidized Stafford Loan

• This is not a need-based loan.
• You are responsible for paying all of the interest on your loan.
• The interest rate is fixed at 6.8%.
• You must be enrolled at least half-time to qualify.
• Repayment begins six months after you are no longer enrolled on at least a half-time basis.

Annual Loan Limits for the Federal Stafford Loan Program

If you are a dependent undergraduate student, you may borrow up to the following amounts in Subsidized Stafford loans:

• $3,500 if you're a first-year student enrolled in a program of study that is at least a full academic year.
• $4,500 if you've completed your first year of study, and the remainder of your program is at least a full academic year.
• $5,500 a year if you've completed two years of study, and the remainder of your program is at least a full academic year.

If you are an independent undergraduate student or a dependent student whose parents are unable to get a PLUS loan, you may borrow up to the following amounts through a combination of Subsidized and Unsubsidized Stafford loans:

• $7,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. (At least $4,000 of this amount must be in unsubsidized loans.)
• $8,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. (At least $4,000 of this amount must be in unsubsidized loans.)
• $10,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year. (At least $5,000 of this amount must be in unsubsidized loans.)

If you are a graduate student, you can borrow up to $20,500 each academic year through a combination of subsidized and unsubsidized Stafford loans (the maximum subsidized loan, however, is $8,500).

Aggregate Loan Limits for Federal Stafford Loan Program

The total debt you can have outstanding from all your combined FFELP loans is:

• $23,000 as a dependent undergraduate student
• $46,000 as an independent undergraduate student (maximum subsidized amount is $23,000)
• $138,500 as a graduate or professional student (maximum subsidized amount is $65,500)

Application Process

1. Complete the Department of Education's Free Application for Federal Student Aid (FAFSA) and return it as instructed. You can get a paper copy from your local high school, or the Financial Aid office at the nearest college, university or vocational school. If you have access to the Internet, you can complete and send the form by going to: http://www.fafsa.ed.gov.
2. Complete the Federal Stafford Loan Master Promissory Note.
3. Return the completed loan application to the school you plan to attend.
4. Once the school has processed the application, you (or a school representative) will forward it on to your chosen lender.
5. Loan funds are generally sent to the school in at least two payments. Your school will either pay you directly or credit your student account (or a combination of the two). If you are a first-time borrower, you will need to complete entrance counseling before receiving your first disbursement. The first disbursement for a first-time borrower cannot be delivered to you until 30 days after the first day of class.

Other Information

• Plain Language Disclosure
• Borrower Rights and Responsibilities