Federal Stafford Loan Terms

Subsidized Loan

The Subsidized Stafford Loan is offered to undergraduate students who demonstrate financial eligibility according to federal regulations. For a Subsidized Loan, generally no interest is charged to the student while he/she is enrolled at least half time. For loans first disbursed on or after July 1, 2012 and before July 1, 2014 interest accrues from the start of the 6-month grace period and throughout the repayment period due to a temporary suspension of the grace period interest subsidy associated with the fiscal year 2012 federal budget bill. Loans first disbursed on or after July 1, 2014 are once again eligible for an interest subsidy during the 6-month grace period, so interest accrues starting after the 6-month grace period and throughout the repayment period. The interest rate for Subsidized Loans with a first disbursement occurring after June 30, 2014 and prior to July 1 2015 is 4.66%, fixed for the life of the loan.

Unsubsidized 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, 2014 and prior to July 1, 2015 is 4.66%, fixed for the life of the loan.

Annual Loan Limits Freshmen Sophomore Junior Senior
Subsidized Only $3,500 $4,500 $5,500 $5,500
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.

Origination Fee

An origination fee of 1.073 percent is set by the U.S. Department of Education and deducted from loans with first disbursement dates on or after October 1, 2014 and before October 1, 2015. 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.