Federal Stafford Loans

The Federal Stafford Loan is an affordable, low interest loan designed for undergraduate students as a means to supplement their educational expenses. To be eligible for Stafford Loans, students must be enrolled at least half-time (six credits) and complete the FAFSA. The two types of Stafford Loans are:

Subsidized Stafford: This loan is interest free while enrolled in at least six credits or more. Repayment of this loan begins six months after graduation, withdrawal from school, or dropping below six credits. Once repayment begins, the interest rate for this loan will never exceed 8.25%.

Unsubsidized Stafford: This loan accrues interest from the date of disbursement and throughout the lifetime of the loan. Repayment of this loan begins six months after graduation, withdrawal from school, or dropping below six credits. Students have the option of making ‘interest only’ payments while in school to help decrease the total cost of the loan. The interest rate for this loan will never exceed 8.25%.

Note: The amount a student can borrow depends on grade level in school and student classification (dependent undergraduate, independent undergraduate or independent undergraduate whose parents are unable to get a PLUS – Parent Loan).