Stafford Loans

Federal Stafford Student Loans

Stafford Loans are low interest rate loans made to undergraduate students attending accredited colleges and universities. There are two types of Stafford Loans: Subsidized and Unsubsidized.

The Subsidized Stafford Student Loan is a federally subsidized loan program available on the basis of financial need to students enrolled at least half-time. For students who are eligible for a Subsidized Stafford Loan, the U.S. Department of Education pays the interest while you're in school at least half-time, for the first six months after you leave school (your grace period), and during periods of deferment (a postponement of loan payments). The interest for new undergraduate loans with inital disbursements after 7/1/09 is 5.6%. A FAFSA must be completed to qualify for a Stafford Loan.

Unsubsidized Stafford Student Loans do not require a student to have financial need. The U.S. Department of Education does not pay interest on the loan. The interest rate is fixed at 6.8% as of July 1, 2006 and the interest will start accruing on the date of your first disbursement. There is an option to pay the interest while in school if the student should want to. The Unsubsidized Stafford Loan does not go into repayment until you have dropped below at least half-time, six months after you leave school (your grace period) and during periods of deferment (a postponement of loan payments) A FAFSA must be completed to qualify for a Stafford Loan.

In order for a Federal Stafford Loan to be applied to your Bursar account, two important steps need to be completed:

Stafford Entrance Counseling 

Apply for your Stafford Loan

Stafford Student Loan Maximum Amounts

*These amounts indicate the federal maximums. Individual student loans are based on the need level, expected costs,other financial aid and additional factors. Borrowers are reminded that there are upfront fees of 1.5% on any Stafford Loan disbursed after 7/1/09.

**Additional Loan amounts are available to eligible independent undergraduate students or dependent students whose parents are unable to borrow under the federal PLUS Program.

***All students eligible for the Stafford Loan Program may receive an additonal $2000 Unsubsidized Stafford Loan for the year.