|
|
Federal Stafford Loan
Stafford loans are low-interest, federally guaranteed student loans. There are two types of Stafford loans: subsidized and unsubsidized.
Subsidized Stafford loans
are available to students who meet a financial needs test. The federal government pays the interest on a subsidized Stafford loan while the borrower is enrolled in school, during grace periods and/or during qualified deferment periods.
Unsubsidized Stafford loans are available to students regardless of family income. Students are charged interest on an unsubsidized Stafford loan from the time the loan is disbursed until it is paid in full. If the interest isn't paid as it accrues, it will be capitalized. This means the interest will be added to the principal amount of the loan, with additional interest based upon the higher amount.
Loan amounts on Stafford loans (subsidized and unsubsidized) are based on the borrower's year in school and whether he or she is considered dependent or independent:
|
Annual Loan Limits for Dependent Students
|
Subsidized Loan |
Total Amount Subsidized and Unsubsidized
|
|
Freshman
|
$3,500
|
$3,500
|
|
Sophomore
|
$4,500
|
$4,500
|
|
Junior or senior
|
$5,500
|
$5,500
|
|
|
Federal Stafford Unsubsidized Independent Student
|
Subsidized Loan
|
Total Amount Subsidized and Unsubsidized
|
|
Freshman
|
$3,500
|
$7,500
($4,000 unsubsidized)
|
|
Sophomore
|
$4,500* |
$8,500
($4,000 unsubsidized)
|
|
Junior or senior
|
$5,500
|
$10,500
($5,000 unsubsidized)
|
| Graduate or professional |
$8,500
|
$20,500
($12,000 unsubsidized)
|
|
Undergraduate dependent lifetime limit
|
$23,000 |
|
Undergraduate independent lifetime limit
|
$46,000
|
|
Graduate or professional lifetime limit**
|
$138,500
|
*For loans disbursed on or after July 1, 2007.
**Exceptions may apply to certain graduate students.
|
|
|
