College Loans > Federal Stafford Loans
Federal Stafford Loans
- For Students
- Fixed interest rate of 6.8% or lower
- 1% Fee
- For more information, contact your school
Federal Stafford Loans
If grants, scholarships and savings are not enough to cover your cost of attending schoolAnnual cost of attending a specific school, including tuition, fees, room and board, books and supplies, transportation and personal expenses. This amount is determined by your school., loans can bridge the gap. We recommend starting with a Federal Stafford Loan before applying for a Federal Parent PLUS Loan or Certified Private Loan.
Why choose a Stafford Loan?
- Stafford loans are available to most students, and no credit checkLenders contact Credit Bureaus (Equifax, Experian, TransUnion) who have tracked your credit history (e.g. credit cards, loans) to determine whether you have been diligent in your repayment of debts. is required
- Stafford loans have lower interest rates than PLUS loans and have more repayment options than private loans
What are the loan terms?
- Fixed interest rates – 4.5% (subsidizedBased on financial need, the government agrees to cover the cost of the loan interest while the student is in school. loans) or 6.8% (unsubsidizedThe student, as opposed to the government, is fully responsible for paying the loan interest, though payment can be deferred until after graduation. loans) for 2010-2011
- 1% fee
- Deferred payments – No payments due until 6 months after you graduate or enroll in school less than half-time
- Flexible repayment options – 10-year standard repayment term (may be extended up to 25 years)
How much can you borrow?
- Annual loan limits depend on your year in school and whether you are dependent or independent
| Dependent College Student* |
Annual Loan Limit |
|---|---|
| 1st Year (Freshman) | $5,500 total (up to $3,500 subsidized) |
| 2nd Year (Sophomore) | $6,500 total (up to $4,500 subsidized) |
| 3rd Year (Junior) | $7,500 total (up to $5,500 subsidized) |
| 4th or 5th Year (Senior) | $7,500 total (up to $5,500 subsidized) |
You are dependent if you are under 24 years old, are not married, do not have dependents and are not a veteran
| Independent College Student |
Annual Loan Limit |
|---|---|
| 1st Year (Freshman) | $9,500 total (up to $3,500 subsidized) |
| 2nd Year (Sophomore) | $10,500 total (up to $4,500 subsidized) |
| 3rd Year (Junior) | $12,500 total (up to $5,500 subsidized) |
| 4th or 5th Year (Senior) | $12,500 total (up to $5,500 subsidized) |
* Dependent students whose parents do not qualify for a Federal Parent PLUS Loan may borrow up to the annual limit for independent students
You are independent if you are at least 24 years old, are married, have dependents or are a veteran
- We suggest borrowing up to your annual loan limit with a Federal Stafford Loan
- If you need more money, consider Federal Parent PLUS Loans or Certified Private Loans to cover any remaining costs
Who is eligible?
How to Get a Federal Stafford Loan
You must complete the Free Application for Federal Student Aid ( FAFSA A form to be filled out annually by current and anticipating students (and their parents) in the US to determine eligibility for federal student aid (including Stafford and PLUS loans, Pell grants and work-study programs). In addition, many states and schools use information from the FAFSA to award nonfederal aid. ) at fafsa.ed.gov each year. For more information, contact your school.
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