Get a Stafford Loan
Stafford Loans help undergraduate, graduate and professional students attending college at least half-time pay for their education.
If you show financial need, you will qualify for a subsidized loan. The federal government pays the interest that accrues while you're in school, during authorized deferment periods and for six months after you're no longer enrolled at least half-time. You pay the interest when your loan enters repayment.
You don't have to show financial need to qualify for an unsubsidized loan. However, you are responsible for the interest while you're in school. You can pay the interest monthly or quarterly or have it added to the principal.
Eligibility Criteria
You must:
- Be enrolled or accepted for enrollment at least half-time in an eligible degree or certificate program at an eligible institution.
- Have a high school diploma or its equivalent.
- Be in good standing and making satisfactory academic progress if currently enrolled.
- Be a citizen, permanent resident, or eligible noncitizen of the United States.
- Not be in default or owe a refund on any federal education grant or loan unless you have made satisfactory arrangements to repay the outstanding debt.
Your need for a subsidized loan is determined before your eligibility for an unsubsidized loan is determined. Your college determines your eligibility.
Loan Limits
How much you can borrow in Stafford Loans depends on your year in college, the cost of attendance, the length of the program, whether you're a dependent or independent student and the other financial aid you're getting. Your expected family contribution is considered in the case of a subsidized loan. You may be offered a subsidized loan, an unsubsidized loan or both.
| Grade Level | Dependent Status | Independent Status |
|---|---|---|
| First Year | $5,500 | $9,500 |
| Second Year | $6,500 | $10,500 |
| Each Remaining Year of Undergraduate Study | $7,500 | $12,500 |
| Each Year of Graduate or Professional Study | N/A | $20,500 |
The total maximum outstanding debt allowed is:
| Dependent Undergraduate | $31,000 |
|---|---|
| Independent Undergraduate | $57,500 |
| Graduate or Professional Student* | $138,500 |
*Includes any Federal Stafford Loan and/or Federal Supplemental Loans for Students received as an undergraduate.
Interest Rate
Interest for subsidized loans is generally paid by the Department of Education while you are in school. You are responsible for the interest on unsubsidized loans, beginning when you receive the funds. Subsidized Stafford Loans disbursed to undergraduate students between July 1, 2008, and June 30, 2009, have an interest rate of 6.0 percent. Subsidized loans disbursed to undergraduate students between July 1, 2009, and June 30, 2010, have an interest rate of 5.6 percent. Unsubsidized Stafford Loans for undergraduates and all Stafford Loans for graduate students have a 6.8 percent interest rate.
The College Cost Reduction and Access Act of 2007 reduced the interest rates on subsidized Stafford Loans for undergraduate students starting July 1, 2008. These reductions are available only to undergraduate students, not graduate students, and only for subsidized Stafford Loans, not unsubsidized Stafford Loans. The interest rates are illustrated in the following table.
| Phased–in Cuts in Interest Rates on Subsidized Stafford Loans for Undergraduate Students |
||
|---|---|---|
| Year | Interest Rate Subsidized Stafford Loans (Undergraduate Students) |
Interest Rate Other Stafford Loans (Graduate or Unsubsidized) |
| 2007–08 | 6.8% | 6.8% |
| 2008–09 | 6.0% | 6.8% |
| 2009–10 | 5.6% | 6.8% |
| 2010–11 | 4.5% | 6.8% |
| 2011–12 | 3.4% | 6.8% |
| 2012–13 | 6.8% | 6.8% |
