Stafford Loans, FFEL and Direct Loans!Stafford Loans are student loans administered by the U.S. Department of Education. There were two versions of the Stafford Loan. As a result of recent legislation, no further loans will be made under the FFEL Program beginning July 1, 2010. All new Stafford, PLUS, and Consolidation Loans will come directly from the Department under the Direct Loan Program. These are known as Direct Subsidized Loans and Direct Unsubsidized Loans.
You must fill out a FAFSA form to be considered. Once the FAFSA has been processed, the school will inform you of your eligibility for the Stafford Loan. If you are to receive a loan, you will have to sign a promissory note that will spell out the terms and conditions of the loan.
Maximum Loan AmountsThe maximum loan amount depends on your year of study and whether you are a dependent student. For dependent students:
For independent students or dependent students whose parents applied for, but were not able to get a PLUS loan:
What is the interest rate?
For Direct Subsidized and Unsubsidized Loans to undergraduates disbursed after 7/1/2016 and before 7/1/2017, the interest rate will be 3.76%. Direct Unsubsidized Loans to Graduate or Professional students disbursed after 7/1/2016 and before 7/1/2017, will carry a 5.31% interest rate.
If you have the financial need, some or all of your Stafford Loans may be subsidized. This means that the federal government will pay the interest on the loans while you are attending school and for up to six months after you leave school. You may also be eligible to get some funds up to the yearly maximum as an unsubsidized loan.
Why didn't I get the whole amount?For loans disbursed between October 1, 2015 and October 1, 2016, the fee is 1.068%. For loans first disbursed after October 1, 2016 and before October 1, 2017, the loan fee is 1.069%. The loan fee will be deducted proportionately from each loan disbursement.
When do I have to pay it back?
When you graduate, leave school or drop under a half-time enrollment, you will begin a six month grace period. Once this is finished, you will start repayment.
The Scholarship & Grant Guide