There are two Stafford Loan Programs available for student borrowers, subsidized and unsubsidized. All students who wish to borrow through either of these programs must complete the
FAFSA each year. Loan repayment begins six months after you graduate or after you are no longer enrolled for at least six hours.
A
Subsidized Stafford Loan is a federal loan that must be repaid. Ability to participate in the Subsidized Stafford Loan Program is based on calculated need as determined by the
FAFSA. The interest rate is fixed at 5.6%. "Subsidized" means that the interest on this loan is not paid by the student while he or she is enrolled in school. The government (tax payers) pays the interest on this type of loan while you are in school.
An
Unsubsidized Stafford Loan is also a federal loan that must be repaid. If a student is not eligible for the Subsidized Stafford Loan, as determined by the results of the
FAFSA, an Unsubsidized Stafford Loan can be an alternative. "Unsubsidized" means that interest will accrue while the student is in school. The student can choose to pay the interest while in school or defer the interest and have it added to the principal balance. The interest on this loan is also fixed at 6.8%.
Annual Stafford Loan Limits
| Freshman |
$5,500 |
| Sophomore |
$6,500 |
| Junior |
$7,500 |
| Senior |
$7,500 |
Independent students may borrow at increased limits under the Unsubsidized Stafford Loan Program. Aggregate limits for independent and graduate students vary. For more detailed information, please contact the Office of Financial Aid.
Note: Prior to disbursement of Federal Stafford Loans, the lender withholds 1% of the loan amount to cover loan origination and insurance fees.
