Federal Stafford
Federal Stafford Loans are loans awarded by the college from federal funds. Federal Stafford Loans may be subsidized (awarded on the basis of financial need) or unsubsidized (not awarded on the basis of financial need.) Interest on subsidized loans will not be charged to the borrower until repayment is begun; interest on unsubsidized loans will be charged from the time the loan is disbursed.
In order to apply for a Federal Stafford Loan, the student must complete and submit the Free Application for Federal Student Aid (FAFSA) for the academic year he or she plans to attend. A student is eligible to be considered for the Federal Stafford Loan if they have a valid EFC on file in the Financial Aid Office; are a regular student enrolled in an eligible program on at least a half-time basis; have not already borrowed the maximum aggregate Federal Stafford Loan amount; and are not ineligible for other reasons.
If you are enrolled at least halftime in a degree or certificate program you may be eligible to receive a federal Stafford loan. Federal Stafford loan limits are as follows:
- $3,500 if you're a first-year student enrolled in a program of study that is at least a full academic year.
- $4,500 if you have completed your first year of study and the remainder of your program is at least a full academic year
The first time a loan is accepted, the student must complete a Master Promissory note. The loan will be divided into two payments for the academic year. The student will also be required to participate in an Entrance Loan Counseling session. The student can cancel all or part of the loan within 90 days of notification. An Award Letter will be issued to eligible students who are being offered a Federal Stafford Loan. The student must accept or reject the initial loan offered for an academic year.
Beginning July 1, 2008, the interest rate on subsidized Stafford loans made to undergraduate students in the Federal Family Education Loan (FFEL) Program are as follows:
First disbursement of a loan:
| Made on or after |
And made before |
Interest rate on the unpaid balance |
| July 1, 2008 |
July 1, 2009 |
6.0 percent |
| July 1, 2009 |
July 1, 2010 |
5.6 percent |
| July 1, 2010 |
July 1, 2011 |
4.5 percent |
| July 1, 2011 |
July 1, 2012 |
3.4 percent |
The above interest rate schedule applies to undergraduate, subsidized Stafford loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to these or any other borrowers as the terms and interest rates of those prior loans remain unchanged.
The interest rate on unsubsidized Stafford loans remains at a fixed rate of 6.8 percent.
When a student graduates, withdraws or stops attending on at least a half-time basis, a six-month grace period begins before the student must start repaying the Federal Stafford Loans. At that time Exit Loan Counseling to explain the student's debt and repayment options is required.
At the end of the grace period, the student must begin repaying the loans. The monthly payment amount will depend on the size of the debt and the Repayment Plan. (See the "Loan Repayment" section for an explanation of Repayment Plans and examples of monthly repayment amounts) The student will receive repayment information from the service. However, even if this information isn't received, the student is still responsible for beginning repayment at the end of the grace period.
Loan payments can sometimes be postponed (i.e. a deferment or forbearance may be granted) for specific reasons. A deferment allows the borrower to temporarily postpone payments on a loan. (See the "Loan Repayment" section for information on available deferments for Stafford Loans.) A forbearance may be granted when a student is not eligible for a deferment but is temporarily unable to meet the repayment schedule. During forbearance, loan payments are postponed or reduced. Some reasons for which a forbearance may be granted include poor health or other unforeseen personal problems, service in a medical or dental internship or residency, service in a position under the National Community Service Trust Act of 1993, or repayment obligations equal to or greater than 20% of monthly gross income. Deferments and forbearance must be requested! In certain instances (e.g. total permanent disability, child care providers serving in a low income community) a loan may be discharged (forgiven) which releases the borrower from all obligation to repay the loan.
Apply for Aid - FAFSA
Financial Aid Basics