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 $24,500. 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 variable and capped at 8.25%. 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.