Federal Subsidized Stafford Loans

The federal subsidized Stafford loan is a low-interest loan made to students who demonstrate financial need. Undergraduates may borrow up to $3,500 for the first year, $4,500 for the second year and $5,500 for each remaining undergraduate year. Undergraduate students may borrow an aggregate limit of $23,000 in subsidized Stafford loans. Independent students may have additional eligibility under the unsubsidized Stafford loan.

Graduate and professional students may borrow up to $20,500 a year for a total of $138,500 (this includes undergraduate subsidized and unsubsidized Stafford loans). The interest rate is fixed if the loan is disbursed after July 1, 2006.  Visit our Interest Rates page to see current rates. The interest is paid by the federal government while the borrower is enrolled in school at least half-time. Repayment begins six months after the student graduates, withdraws from school, or drops below half-time status. Repayment may take as long as 25 years based on the total outstanding balance.