Federal Stafford Loans were established by the Federal Government. They are fixed-rate, low interest loans available to undergraduate and graduate students attending accredited schools at least half time. They are the most common source of college loan funds.
There are two types of Stafford Loans. Subsidized Stafford loans are need-based, and the government pays the interest on these loans while you are in school, during a six-month grace period immediately preceding repayment, and during authorized deferment.
Unsubsidized Stafford loans are not need-based, and you are responsible for all of the interest that accrues on the loan, including while you are in school.
For Stafford loans first disbursed beginning July 1, 2007, the interest rate is fixed at 6.8%. The current rate through June 30, 2007 is 7.22% during repayment and 6.62% during in-school, grace, and deferment.
Federal regulations limit the dollar amount a student may receive in an academic year from a Federal Subsidized Stafford Loan (see chart below for limits).
Stafford Loans |
|
Undergraduate
Dependent Students |
Undergraduate Independent Students
or Undergraduate Dependent Students
whose parents cannot obtain
PLUS loans |
Year |
Subsidized and
Unsubsidized |
Subsidized |
+ |
Unsubsidized |
1st year |
$3,500 |
$3,500 |
+ |
$4,000 |
2nd year |
$4,500 |
$4,500 |
+ |
$4,000 |
3rd year |
$5,500 |
$5,500 |
+ |
$5,000 |
4th year |
$5,500 |
$5,500 |
+ |
$5,000 |
5th year |
$5,500 |
$5,500 |
+ |
$5,000 |
Maximum |
$23,000 |
Up to $23,000 Subsidized
Up to $26,000 Subsidized
and Unsubsidized |
|
Graduate/Professional School |
Year |
Subsidized |
|
Unsubsidized |
1st year |
$8,500 |
+ |
$10,000 |
2nd year |
$8,500 |
+ |
$10,000 |
3rd year |
$8,500 |
+ |
$10,000 |
4th year |
$8,500 |
+ |
$10,000 |
5th year |
$8,500 |
+ |
$10,000 |
Maximum Grand Totals
(Undergraduate and Graduate Professional) |
Up to $65,000 Subsidized
Up to $138,500 Subsidized and Unsubsidized |
|
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