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 Federal
Stafford Loans are low interest, 10-year loans designed to provide students with financial resources to help them pay for
a college education. There are two types of Federal Stafford Loans and they are regulated by the federal government. Most
borrowers are awarded a combination of Subsidized and Unsubsidized loans to make up the maximum loan amount.
Subsidized Stafford Loan
The federal government pays the interest on subsidized Stafford loans while you are in school, for a six month grace period
and deferment. These loans are need based which is determined by the information provided on the FAFSA.
Unsubsidized Stafford Loan
You are responsible for the interest that accrues on the unsubsidized Stafford loans. Interest accrues from the time of loan
disbursement and is capitalized (interest is added to the principle amount) according to the lender's policy. You have the
option to make interest payments while in school but are not required to make any payments if you choose. These loans are
NOT need based, so anyone, regardless of income, is eligible to apply.
The Federal Stafford loans start as 10-year loans and the interest rate is variable, changing once a year on July 1st.
The interest rate is based on the 91-day T-bill and can not exceed 8.25%.
To apply for the Federal Stafford loans you must complete a Free Application for Federal Student Aid (FAFSA)
using the school code G31070. The FAFSA uses your financial information (income, assets, cash & savings) to determine
your Expected Family Contribution (EFC). The EFC is used by the school to determine your need for the Subsidized loan and
Federal Work Study. Cost of attendance minus EFC equals need (COA - EFC = Need).
You must meet the following qualifications to receive Federal Stafford Loans:
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- Must be a U.S. citizen, national or U.S. permanent resident or eligible non-citizen
- Must have not defaulted on a previous student loan
- Must be attending at least half-time in a qualified school
- Must have a valid Social Security number
- Must be registered with Selective Services (males only)
- Must maintain satisfactory academic progress
- Must complete FAFSA
and any other paperwork required
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 Federal
Stafford Loans are awarded for an academic year (9 months) but disbursed each quarter. The maximum amount you can borrow from
the Subsidized Stafford Loan is $8,500.
Currently the Unsubsidized Stafford Loan is $30,000 with the $8,500 in Subsidized loan.
The maximum amount of Stafford Loans is $38,500 per academic year (limited by the school budget).
The Federal Stafford Loans come with many different repayment options such as: Level (Standard) Repayment, Graduated Repayment,
Income Sensitive Repayment and Loan Consolidation.
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