We know the importance of an education. We also know the cost. Federal Stafford Loans can help you along the way. With this program, it's your loan. You, the student, are the borrower.
Am I eligible?
Undergraduate or graduate students enrolled at least half-time in an eligible program may borrow.
What types of Stafford Loans are there?
Subsidized Loans:
- Eligibility for subsidized loans is based on financial need.
- The interest is paid by the federal government while the borrower is enrolled at least half time, during the grace period and periods of deferment.
- Repayment of both principal and interest begins after the grace period.
Unsubsidized Loans:
- Are not based on financial need.
- Awarded by calculating:
Cost of attendance
- (MINUS) Other financial aid you're expected to receive
(including a subsidized Federal Stafford Loan)
= (EQUALS) Unsubsidized Federal Stafford Loan eligibility
(not to exceed the program loan limit maximums)
- The borrower is responsible for paying the interest from the date the funds are disbursed.
The interest may be paid or it may be accrued and added to the principal balance of the loan.
- Repayment of principal begins after the grace period.
How much can I borrow?
The maximum annual limits for undergraduate and graduate students are monitored by your college and based on federal regulations. Loan limits are also determined by your academic level and IRS tax status.
Stafford Loan limits
for loans disbursed on or after July 1, 2009
| Annual Loan Limits |
Subsidized |
Total Subsidized
& Unsubsidized |
| Dependent Undergraduates |
| First Year |
$3,500 |
$5,500 |
| Second Year |
$4,500 |
$6,500 |
| Third Year & higher |
$5,500 |
$7,500 |
| Independent Undergraduates** |
| First Year |
$3,500 |
$9,500 |
| Second Year |
$4,500 |
$10,500 |
| Third Year & higher |
$5,500 |
$12,500 |
| Graduate and Professional Students |
| All levels |
$8,500 |
$20,500 |
| |
| Aggregate Limits |
| Dependent Undergraduates |
$23,000 |
$31,000 |
| Independent Undergraduates * |
$23,000 |
$57,500 |
| Graduate and Professional Students |
$65,500 |
$138,500 |
Additional Information on Loan Limits
- Certain health professions students may qualify for increased loan limits depending on the program of study.
- Annual loan limits for undergraduate students are prorated.
- **Independent students may qualify for additional unsubsidized Stafford loan amounts.
- Dependent students may also qualify for additional amounts if determined eligible by the financial aid administrator or if the parents do not qualify for a Federal PLUS loan.
- Preparatory and Teacher Certification students may qualify for a Stafford loan, even if they are not enrolled in a degree program. Contact your college's Financial Aid Office for detail
The financial aid administrator of the college you are attending determines and certifies your actual loan amount up to the limit.
Fees and Disbursements
A federal loan origination fee (which is gradually reduced as outlined in the chart below) is deducted from your loan proceeds prior to disbursement.
The following chart shows the schedule for reducing the origination fees on subsidized and unsubsidized Stafford loans.
| Disbursement Date |
Origination Fee |
| July 1, 2009 through June 30, 2010 |
0.5% |
| July 1, 2010 and later |
0.0% |
Loans are generally disbursed in at least two installments, but some colleges may make single disbursements for single-term (one semester, one trimester, one quarter or 4 months) loans. Check with the financial aid office at your college to learn how your loan(s) will be disbursed.
When do I have to repay the loan?
- Repayment of principal begins six months after your enrollment status drops below half time.
- In certain situations, your payments can be temporarily postponed or reduced through deferment or forbearance.
- The repayment of your loan can be up to ten years.
What is the interest rate?
Current Interest Rates for Federal Stafford Loans
The interest rate on unsubsidized Federal Stafford Loans for undergraduate students, as well as subsidized and unsubsidized loans for graduate students, is fixed at 6.8%.
The interest rate on subsidized Federal Stafford Loans for undergraduate students has gradually been reduced over a period of four years to the current fixed rate of 3.4%.
Interest rates are subject to change on July 1st of each year. View our student loan interest rate chart for more information. Contact your school for information on how to apply for a Federal Stafford Loan.