Federal Stafford Loan Program
Federal Stafford Loans are made in the student's name and can be either subsidized or unsubsidized.
A subsidized Stafford loan is awarded on the basis of financial need. This need is determined from the results of the FAFSA. If you have subsidized Stafford loans, the federal government pays the interest while you are in school at least half time, during a grace period, or during authorized periods of deferment. The loan is not based on credit-worthiness, nor is a co-signer required.
An unsubsidized Stafford loan is not awarded on the basis of need. If you have unsubsidized Stafford loans, you will be charged interest from the day the loan is disbursed until it is paid in full, including in-school, grace, and deferment periods. You may choose to pay the interest during these periods, or it may be capitalized. If you choose to pay the interest as it accumulates, you will repay less in the long run.
You may receive a subsidized and unsubsidized Stafford Loan for the same enrollment period; however, your maximum loan eligibility may not exceed federally regulated limits.
Requesting a Federal Stafford Loan
Students
wishing to borrow from the Stafford Loan program must fill out a
Free Application for Federal Student Aid (FAFSA) for the
appropriate academic year. Once your financial aid file is
complete, your eligibility will be determined and you will be
awarded either the subsidized Stafford Loan, the unsubsidized
Stafford Loan, or a combination of the two.
Certifying Your Federal Stafford Loan
Before we
can certify a loan request, you must complete the online loan
acceptance form via the DUCK. Once you are awarded a link will
be available in the DUCK message portal for your completion.
Once the loan acceptance form is completed the financial aid
office will transmit the loan request to your lender in 10 – 14
business days. Please note, all Loan Acceptance Forms
requesting loans must be completed before the last day of
classes of the term.
Interest Rates
Effective July 1, 2008 the
interest rates are:
Subsidized Stafford Loan - 6%
Unsubsidized Stafford Loan - 6.8%
Annual Loan Limits
|
Annual Loan Limits for Stafford Subsidized and Unsubsidized Loans by Grade Level |
|
|---|---|
|
|
|
| Dependent (as determined by FAFSA) | |
| Dependent Freshman | $5500 (total subsidized and/or unsubsidized - maximum $3500 subsidized) |
| Dependent Sophomore | $6500 (total subsidized and/or unsubsidized - maximum $4500 subsidized) |
| Dependent Junior/Senior | $7500 (total subsidized and/or unsubsidized - maximum $5500 subsidized) |
| Independent (as determined by FAFSA) | |
| Independent Freshman | $9500 (total subsidized and/or unsubsidized - maximum $3500 subsidized) |
| Independent Sophomore | $10,500 (total subsidized and/or unsubsidized - maximum $4500 subsidized) |
| Independent Junior/Senior | $12,500 (total subsidized and/or unsubsidized - maximum $5500 subsidized) |
| Graduate | |
| Graduate | $20,500 (total subsidized and/or unsubsidized - maximum $8500 subsidized) |
|
Aggregate (Lifetime) Limits for all Stafford Subsidized and Unsubsidized Loans |
|
|---|---|
| Dependent Undergraduate | $31,000 (maximum $23,000 subsidized) |
| Independent Undergraduate | $57,500 (maximum $23,000 subsidized) |
| Graduate | $138,500 (maximum $65,000 subsidized. Stafford loans received for undergraduate studies are included in the graduate aggregate loan limits.) |
Fees
Borrowers can be charged a fee by their lender ranging from 1.75%
to 3% on each Stafford loan disbursement. For more details, check with your specific lender.
Loan Fees Deducted
When the lender disburses a student's loan, guarantee and origination fees may be deducted from the total amount borrowed. Each lender will send a disclosure statement advising the student of the amount of "net" proceeds that have been disbursed and the applicable interest rate.
Repayment Terms
Under the subsidized Federal Stafford Loan, repayment begins six months after the borrower was last enrolled at least half time. Under the unsubsidized Federal Stafford Loan, repayment of interest begins within 30 days from full disbursement of the loan proceeds, and repayment of principal begins six months after the borrower was last enrolled at least half time. Borrowers may elect to pay the interest as it accrues or may capitalize interest payments (interest is added to the loan principal). The maximum repayment term for the subsidized and unsubsidized Stafford Loan is ten years with no pre-payment penalty.
Deferment and Payment Options
There are many deferment and repayment options under the Federal Stafford Loan program that have been designed to make it possible for borrowers to repay their loans even when special circumstances make repayment difficult. Details are available in the promissory note and from the lender upon request.