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FEDERAL
STAFFORD LOANS from Studentloans.com
Most college or university students can secure a Federal
Stafford Loan to assist with their financial needs, so what
are you waiting for? Start now and get your Stafford Loan
through Studentloans.com for qualifying borrowers. |
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Stafford
Loans are the most widely used, low-cost education loan available
from the United States Federal government, and Stafford Loans
are a great way for you to secure the extra financial aid
you need in order to meet your needs for college, university
or trade school. |
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| Rates
& Fees |
| Interest rates for
Stafford Loans disbursed from July 1, 2008 through June
30, 2009 |
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Subsidized Stafford Loans |
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| • |
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% |
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Unsubsidized Stafford Loans |
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| • |
For both undergraduate and graduate
students, the interest rate for Unsubsidized Stafford
Loans is 6.8% |
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| Fees |
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Federal Stafford Loans are currently subject to a 1.5%
origination fee which is deducted from your loan amount.
For disbursements on or after July 1, 2007, the Stafford
Loan origination fee will gradually be phased out. The
Stafford Loan origination fee will be:
| • |
1% from July 1, 2008 through June
30, 2009 |
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A Federal Default Fee of 1% is assessed by the guarantor
of the loan |
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TO TOP |
| Eligibility |
| The Federal Stafford
Loan is available to you if you are: |
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Borrower must be enrolled half-time or
more as an undergraduate, graduate or professional student |
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A citizen of the United States of America or eligible
resident |
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Have no unresolved defaults on federal student loans |
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TO TOP |
| Loan
Terms |
| There are two forms
of Stafford Loans that you can apply for: |
| Unsubsidized Federal
Stafford Loan |
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Eligibility is not based on financial need
as determined by the FAFSA |
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No payments are required while you are in-school, however,
you will be responsible for all interest that accrues
on the loan during your in-school period. |
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You may choose to make payments on this type of Stafford
Loan while you are in school, during your 6-month grace
period following graduation or as scheduled in special
deferment situations |
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You must complete the Free Application for Federal Student
Aid (FAFSA) to be considered for this loan
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| Subsidized
Federal Stafford Loan |
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The United States federal government pays the interest
on this type of Stafford Loan while you are in school,
during your six-month grace period after completing your
program and during periods of approved deferment |
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Eligibility is based on financial need as determined
by the FAFSA
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| Disbursement |
| Studentloans.com will send your funds to
your school. In most cases, your loan will be disbursed
in 2 installments – i.e. 2 separate payments. Neither
of the installments will be greater than half of the amount
of the loan. Funds from a Stafford Loan must first be
used for fees that are owed to your school such as tuition,
fees, room and board. If funds remain after these costs
have been paid, you will receive the remaining balance
from your school. You can also request that the school
hold any unused funds for a later time during your enrollment.
Some schools will disburse the funds after 30 days
of enrollment for first-time borrowers or first-year
students. This provides the student an opportunity to
withdraw from classes before any remaining funds are
disbursed to the school. |
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| Canceling a Stafford
Loan |
| You may cancel either a portion or all of
a Federal Stafford Loan if you inform your school within
14 days of the date that the loan is scheduled to be deposited
with your school. If you receive from your school any
funds that you wish to cancel, you can refuse the funds
by not signing and endorsing the check and returning it
to your school. |
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| Borrowing Limits |
SUBSIDIZED
STAFFORD LOAN LIMITS (as of July 1, 2008)
| Level
of Study |
Annual
Limits |
Lifetime
Limits |
Undergraduate
(Freshman/Sophomore/Junior-Senior)
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$3,500/$4,500/$5,500
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$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) |
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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.
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| How
to Apply |
| In order to meet
your needs, Studentloans.com provides a variety of flexible
application options. Since you are likely to be viewing
this page online (unless it has been printed for your
viewing pleasure during an offline session) the fastest
and easiest way to apply is online, right now. To apply
online now, just click on: |
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TO TOP |
| Repayment |
After you graduate from school
or drop below half-time status, there is a six-month
grace period during which you will not be required to
make payments on your Stafford Loans. As you prepare
to leave school, you should prepare yourself for repayment.
To estimate your anticipated cost of living once you
leave school, you may want to view the Budget Calculator
provided by Studentloans.com which provides an interactive,
intuitive worksheet to prepare a potential budget. Starting
with your anticipated income and subtracting income
tax, you can forecast your monthly cost of housing,
utilities, food, travel, transportation, student loans
and other miscellaneous expenses.
Another useful tool to assist you in preparation for
repayment is the Debt / Salary Wizard from Studentloans.com.
The Debt / Salary wizard from Studentloans.com will
help you determine your required salary in order to
meet your monthly student loan obligation.
To minimize your monthly student loan expenses, you
may want to consolidate your existing student loans.
A Consolidation loan combines all of your eligible student
loans into a single new fixed-rate loan with one monthly
payment and a repayment term up to 30 years, depending
on your loan balance. Do you have $35,000 or more in
federal student loans? If so, you can apply by clicking
below: |
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| Deferment
& Forbearance |
| Under certain circumstances,
you may find it difficult to repay your student loans.
Such circumstances may include unemployment, economic
hardship, military service, a disability, attending graduate
school or going to college on a part-time basis. If any
of these situations prevent you from making payments,
you may be eligible for loan deferment.
Deferment provides a period of time in which federal
Stafford Loan payments can be reduced or suspended for
a determined amount of time. During deferment, a borrower
is not required to pay down the principal on subsidized
Stafford Loans, and the interest does not accumulate
on subsidized Stafford Loans. It is important to realize
that during deferment, interest payments are still required.
Studentloans.com is ready to help you with these deferment
situations. The forms to request deferment can be obtained
by downloading, printing and submitting any of the following:
If you are temporarily unable to meet your repayment
schedule and cannot qualify for deferment, you can apply
to receive forbearance on your loan for a period of
time. Forbearance allows you to postpone or reduce loan
payments. Unlike deferment, interest will always continue
to accrue during forbearance. Effective July 1, 2006,
a written request for forbearance is not required, but
Studentloans.com may require you to provide documentation
to support your request. Studentloans.com will determine
if a borrower is eligible for forbearance.
Deferment and forbearance are not automatic, and payments
should continue until a request for deferment or forbearance
is granted. If payments on student loans are not made
on time, default may occur.
Please contact one of our student loans specialists
at 800-620-9852 with any questions about deferment or
forbearance
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TO TOP |
| Default |
| If you do not repay
your student loan on time, it will become delinquent and
can possibly default. This has serious consequences and
can be very damaging to your credit rating. Since defaulted
student loans are reported to all national credit bureaus,
you may experience some of the following consequences:
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The entire unpaid
amount of your student loan, including interest, will
become immediately due and payable, |
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You may be liable for additional
collection costs, |
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You may lose future eligibility
for federal or state financial aid and/or student loans,
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The references you supplied
on your loan application may be contacted in effort to
locate you, |
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You may lose deferment and forbearance
options, |
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Your federal and state tax refunds
may be withheld and applied to your loan balance, |
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Your Illinois professional license
renewal may be denied, |
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Your employer may withhold part
of your salary for payment of your loan, |
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Your loan may be referred to
a collection agency, |
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Legal action may be taken against
you and |
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You will still have to repay
your loan! |
To help you manage
your student loan debt, and to repay your loan, stay
in touch with Studentloans.com. You should also read
any mail you receive regarding your loan, keep records
in a safe place, stay current with your payments, and
write your loan account number on all correspondence
with Studentloans.com and its servicing authorities.
You can access your account
at any time to determine loan balance or make a
payment online.
If you are unable to make your monthly payments, contact
Studentloans.com immediately to avoid default by considering
your repayment options.
Depending upon your circumstances, you may qualify for
loan deferment or forbearance.
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TO TOP |
| Repayment
Options |
| One of the benefits of a federal
Stafford Loan is the variety of repayment options available.
Most Stafford Loans are set up on a standard repayment
plan with monthly payments that remain the same throughout
the repayment period. However, other plans are available
that may make your payments more manageable.
The charts below compare the "monthly payments"
and the "estimated interest expenses" of the
standard and graduated repayment plans using identical
10-year terms and a 6.8 percent interest rate. Studentloans.com
provides several calculators to assist in determining
your financial exposure. You may want to see the Debt
/ Salary Wizard, the Budget
Calculator or the Consolidation
Loan Calculator to determine your best options.
Remember that changes in interest rates and federal
regulations that govern the loan programs can affect
your payments.
Standard Repayment Options
This option allows you to make monthly payments of principal
and interest, excluding periods of deferment and forbearance.
Depending on the amount borrowed, $50 is the minimum
monthly payment. If you do not choose a repayment plan,
the Standard Repayment Plan will be used.
| Amount Borrowed |
Monthly Payment for 10 Years |
Total Amount Repaid |
| $10,000 |
$115 |
$13,810 |
| $15,000 |
$173 |
$20,714 |
| $20,000 |
$230 |
$27,619 |
Graduated Repayment Option
Borrowers choosing this option can start with reduced
payments and gradually increase the payments over time.
A graduated Repayment plan sets your payments lower
at the beginning of your repayment period and then increases
over time. All payments must at least equal the interest
accrued on the loan between scheduled payments.
The advantage of this repayment plan is that it allows
you have a lower payment when your income might be lower
while you change or start a new career. The disadvantage
of this plan is that you will pay more interest over
the life of the loan than you would under a Standard
Repayment plan.
You are allowed to change your repayment plan once
a year. You must request a change in your repayment
plan. Contact your servicer directly through our Account
Access feature about a Graduated Repayment plan.
| Amount Borrowed |
Monthly Payment for 10 Years |
Total Amount Repaid |
| $10,000 |
| 1st Stage: |
$68 for 2 years |
| 2nd Stage: |
$89 for 2 years |
| 3rd Stage: |
$115 for 2 years |
| 4th Stage: |
$150 for 2 years |
| 5th Stage: |
$195 for 2 years |
|
$14,812 |
| $15,000 |
| 1st Stage: |
$102 for 2 years |
| 2nd Stage: |
$133 for 2 years |
| 3rd Stage: |
$173 for 2 years |
| 4th Stage: |
$225 for 2 years |
| 5th Stage: |
$292 for 2 years |
|
$22,220 |
| $20,000 |
| 1st Stage: |
$137 for 2 years |
| 2nd Stage: |
$177 for 2 years |
| 3rd Stage: |
$231 for 2 years |
| 4th Stage: |
$300 for 2 years |
| 5th Stage: |
$390 for 2 years |
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$29,626 |
Income Sensitive Repayment Option
Monthly payments with this option are based upon a percentage
of your gross monthly income. An Income Sensitive Repayment
plan sets the monthly payment based on your annual income
and the balance of your loan. Payments will be adjusted
up or down as your income rises or falls. All payments
must at least equal the interest accrued on the loan
between scheduled payments.
The advantage of this repayment plan is that it allows
you tie your payments to the income that you are earning.
If your income goes up, your payments go up. If your
income goes down, your payments go down. A disadvantage
of this plan can be that you may pay more interest over
the life of the loan than you would with a Standard
Repayment plan. You may be required to provide proof
of income (a tax return) on an annual basis. You are
allowed to change your repayment plan once a year. You
must request a change in your repayment plan. If you
do not choose a repayment plan, the Standard Repayment
Plan will be used. Contact your servicer directly through
our Account Access
feature about an Income Sensitive Repayment plan.
| Amount Borrowed |
Monthly Gross Income |
% of Income |
Required Monthly Payment |
| $10,000 |
$1,000 |
4% |
$57 |
| $20,000 |
$2,000 |
4% |
$113 |
Early Payoff Option
Paying off your Stafford Student loan in full carries
no pre-payment penalties and keeps interest cost to
a minimum.
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