Federal Stafford
Loans are available to undergraduate and graduate students.
For undergraduate students, the interest rate for Subsidized
Stafford Loans is 6.0%. For graduate students, the interest
rate for Subsidized Stafford Loans is 6.8%. These rates
are in effect from July 1, 2008 through June 30, 2009. Studentloans.com
offers valuable borrower benefits on
federal student loans, which can reduce this rate. Apply
now to take advantage of these significant savings!
Federal
Stafford Loan Limits |
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There are limits on amounts that can be borrowed through
the Stafford student loan program. Stafford loan limits depend
on your dependency and academic year. The loan limits listed
below are effective July 1, 2008.
SUBSIDIZED STAFFORD LOAN
LIMITS (as of July 1, 2008)
| Level
of Study |
Annual
Limits |
Lifetime
Limits |
Undergraduate
(Freshman/Sophomore/Junior-Senior)
|
$3,500/$4,500/$5,500
|
$31,0001 |
| Graduate |
$8,500 |
$65,5002 |
Aggregate Loan Limits (effective July
1, 2008)
(1) Undergraduate Dependent Students: $31,000 (no more than
$23,000 of which can be from Subsidized Stafford loan indebtedness).
Undergraduate Independent Students: $57,500 (no more than $23,000
of which can be from Subsidized Stafford loan indebtedness).
(2) Graduate and Professional Students: currently $138,500 (no
more than $65,500 of which can be from Subsidized Stafford loan
indebtedness)
UNSUBSIDIZED STAFFORD
LOAN LIMITS (as of July 1, 2008)
| Level
of Study |
Annual
Limits |
Lifetime
Limits |
Undergraduate
(Freshman/Sophomore/Junior-Senior)
|
$4,000/$4,000/$5,000
|
$23,0001 |
Undergraduate3
(Freshman/Sophomore/Junior-Senior) |
$6,000/$6,000/$7,000 |
$23,0001 |
| Graduate |
$12,000 |
$138,5002 |
Aggregate Loan Limits (effective
July 1, 2008)
(1) Undergraduate Dependent Students: $31,000 (no more than
$23,000 of which can be from Subsidized Stafford loan indebtedness).
Undergraduate Independent Students: $57,500 (no more than $23,000
of which can be from Subsidized Stafford loan indebtedness).
(2) Graduate and Professional Students: currently $138,500 (no
more than $65,500 of which can be from Subsidized Stafford loan
indebtedness)
(3) For Independent Undergraduate Students AND Dependent Students
whose parents cannot borrow a PLUS loan, there are additional
unsubsidized loan funds available (see examples below):
Example #1: A dependent freshman whose
parent has access to PLUS borrowing (whether or not the
parent is actually willing to borrow) could previously have
borrowed $3,500 in a subsidized loan. If the student did
not have need for the full $3,500, the student could have
borrowed a subsidized loan for the amount of demonstrated
need and the difference between that amount and the $3,500
base limit in an unsubsidized loan. Under the new law, that
student will be able to borrow a total of $5,500, no more
than $3,500 of which may be subsidized.
Example #2: A dependent freshman whose
parents are unable to borrow PLUS could previously have
borrowed a total of $7,500, no more than $3,500 of which
could be subsidized. Under the new limits, that student
can borrow a total of $9,500, no more than $3,500 of which
can be subsidized (that is, the base limit of $3,500 plus
the new additional unsubsidized limit of $6,000). The amount
a student can actually borrow may not exceed cost of attendance
minus other assistance (or, for subsidized loans, other
assistance plus the EFC). The same limits apply to a freshman
who is an independent student.
Click here for more information
about Subsidized & Unsubsidized Federal Stafford Loan
Programs.
Stafford
Loan Application Process: Supplementary Step |
|
Before or after you apply for a Stafford Loan, you will need
to submit a FAFSA financial aid application
form – available online at www.fafsa.ed.gov.
Click here to learn more about and apply
for Stafford Loans online.
Federal
Stafford Student Loans: Repayment Information
|
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Repayment of Stafford student loans begins six months after
the student completes school or drops below half-time status.
The minimum monthly payment is $50.
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