Federal Stafford Loan Program

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Federal Stafford Loan Program
Stafford Loan Benefits:
Fixed interest rate - 6.8% or lower
No payments while in school at least half-time
Zero fees (you save 2%)

Stafford Loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants, and work-study. Nearly all students are eligible to receive Stafford loans regardless of credit. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's need.

Stafford Loan Benefits
Low fixed interest rate, as low as 6.0%
Increased borrowing limits - borrow up to $2,000 more
No payments while enrolled in school
Acceptance not based on credit
Click Here to Learn More or Click Here to Apply Online

Stafford Loan Eligibility
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen accepted for enrollment or attending a school that participates in the Federal Family Education Loan Program. Additionally:
You must have submitted a FAFSA to be eligible for a Stafford loan
For subsidized Stafford, you must have financial need as determined by your school
You must be enrolled or plan to enroll at least half time
Consider a Private Student Loan to Cover Unmet Costs

Pay for tuition, books, supplies and more
No origination, guarantor, or prepayment fees of any kind
2% graduation reward based on outstanding principal balance

Stafford Loan Interest Rates
Note: Graduate Stafford Loans (both subsidized and unsubsidized) have a fixed interest rate of 6.8% through 2013.
Academic Year Subsidized Rates Unsubsidized/Graduate Rates
2007-08 6.80% 6.80%
2008-09 6.00% 6.80%
2009-10 5.60% 6.80%
2010-11 4.50% 6.80%
2011-12 3.40% 6.80%
2012-13 6.80% 6.80%
Current Stafford Loan interest rates in effect from 07/01/2009 to 06/30/2010


Stafford Loan Limits
Dependent Students Annual Loan Limits
First Year $5,500 ($3,500 subsidized/$2,000 unsubsidized)
Second Year $6,500 ($4,500 subsidized/$2,000 unsubsidized)
Third Year and Beyond $7,500 ($5,500 subsidized/$2,000 unsubsidized)
Independent Students Annual Loan Limits
First Year $9,500 ($3,500 subsidized/$6,000 unsubsidized)
Second Year $10,500 ($4,500 subsidized/$6,000 unsubsidized)
Third Year and Beyond $12,500 ($5,500 subsidized/$7,000 unsubsidized)
Graduate or Professional $20,500 ($8,500 subsidized/$12,000 unsubsidized)
Lifetime Limits
Undergraduate Dependent $31,000 (Up to $23,000 may be subsidized)
Undergraduate Independent $57,500
Graduate or Professional $138,500 (Up to $65,000 may be subsidized)
or $224,000 (for Health Professionals)


How To Determine Your Dependency Status
The paper FAFSA and the FAFSA online clearly explain the conditions by which a student is considered to be independent student. If you qualify for independent student status it means your parents financials are not included on the FAFSA. Unless you are a returning college student it is unlikely that you are an Independent student.

The following FAFSA dependency questions, taken directly from the 2008-2009 FAFSA, determine your dependency status. If a student can answer yes to any of these, the student is independent.
Were you born before January 1, 1985?
At the beginning of the 2008-2009 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)?
As of today, are you married? (Answer "Yes" if you are separated but not divorced.)
Do you have children who receive more than half of their support from you?
Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2009?
Are (a) both of your parents deceased, or (b) are you (or were you until age 18) a ward/dependent of the court?
Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
Are you a veteran of the U.S. Armed Forces?

If you answered yes to any of these questions you are an independent student and should learn how to maximize your financial aid package. Otherwise, you must use your parent's information on the FAFSA and other financial aid forms.
The amount you can borrow is based on your grade level and your status as a student. Independent students may be eligible to borrow more because they are paying for college without assistance from family.
It is important to note that even if a student is financing their education on their own, dependency status is still determined by the school.
Based on your award letter, you may not always qualify for the maximum Stafford Loan amount. For additional loan funding, consider private student loans which allow you to borrow up to the total cost of education less other financial aid received.