Federal Stafford Loan Terms
The Subsidized Stafford Loan is offered to undergraduate students who demonstrate financial eligibility according to federal regulations. For a Subsidized Loan, no interest is charged to the student as long as he/she is enrolled at least half time and, for loans disbursed after July 1, 2012, as long as 150% of the program length (6 years for a 4 year program) has not expired. Interest accrues from the start of the 6-month grace period and throughout the repayment period. The interest rate for Subsidized Loans with a first disbursement occuring after June 30, 2013 and prior to July 1 2014 is 3.86%, fixed for the life of the loan.
The Unsubsidized Stafford Loan is offered to students who do not qualify on the basis of calculated financial eligibility for a Subsidized Loan, or who qualify for only a portion of the Subsidized Loan annual limit. Interest is charged on an unsubsidized loan while the student is enrolled in school, beginning after the loan is disbursed. Students may elect to pay the interest or have it capitalized (added to the principal) and pay it during the repayment period. The interest rate for Unsubsidized Loans with a first disbursement occuring after June 30, 2013 and prior to July 1, 2014 is 3.86%, fixed for the life of the loan.
|Annual Loan Limits||Freshmen||Sophomore||Junior||Senior|
|Subsidized & Unsubsidized Total||$5,500||$6,500||$7,500||$7,500|
Visit the U.S. Department of Education website for current graduate student loan limits.
Additional Unsubsidized Loan
A dependent undergraduate with a parent who has been credit denied on a Federal PLUS Loan may be eligible to borrow additional (Fr/So: $4,000, Jr/Sr: $5,000) Unsubsidized Stafford Loan. An independent undergraduate may be eligible to borrow additional (Fr/So: $4,000, Jr/Sr: $5,000) Unsubsidized Stafford Loan, provided they meet the federal criteria as an independent applicant for federal student aid.
An origination fee of 1.072 percent is set by the U.S. Department of Education and deducted from loans with first disbursement dates on or after December 1, 2013 and before November 30, 2014. This fee is deducted automatically from amounts borrowed. Thus the net amount disbursed is less than the loan amount approved.
Maximum Annual Loan
Maximum annual loan amounts are set by federal statute and apply to the total combined subsidized and unsubsidized loan.
Maximum Cumulative Loan
The maximum cumulative (aggregate) subsidized and unsubsidized loan amount is $31,000 (no more than $23,000 of which may be Subsidized) for undergraduate study.