All Stafford Loans are either subsidized (the government pays the interest while the student is in school) or unsubsidized (the student pays the interest, the student may choose to pay the interest while in school or deferred paying the interest until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need, this is determined by the FAFSA. All students, regardless of need, are eligible for the unsubsidized Stafford Loan.
Stafford Loans may have loan fees of 2%, which are deducted from the disbursement check. These fees consist of a 1% origination fee and a 1% guarantee fee. Repayment begins six months after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years, although one can get access to alternate repayment terms (extended, graduated and income contingent repayment) by consolidating the loans.
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Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)
|
Base Amount |
Additional Unsubsidized loan amounts |
| Prior to July 1, 2008 |
Effective July 1, 2008 |
| Freshman |
$3,500 |
0 |
$2,000 |
| Sophomore |
$4,500 |
0 |
$2,000 |
| Junior or senior |
$5,500 |
0 |
$2,000 |
| Independent Undergraduate Students and Dependent Students Who's Parents Cannot Borrow a PLUS Loan |
Base Amount |
Additional unsubsidized loan amounts |
| Prior to July 1, 2008 |
Effective July 1, 2008 |
| Freshman |
$3,500 |
$4,000 |
$6,000 |
| Sophomore |
$4,500 |
$4,000 |
$6,000 |
| Junior or senior |
$5,500 |
$4,000 |
$7,000 |
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