Stafford Loans have a fixed rate throughout the life of the loan.

The federal Stafford Loans, Parent PLUS and Grad PLUS Loans are supported by the federal government and can carry lower interest rates than consumer loans obtained by private lenders. Always explore federal loans before choosing private loans.

There are two types of Stafford Loans, subsidized and unsubsidized. The school financial aid office determines whether the student’s loan will be subsidized, unsubsidized, or both. Stafford Loans are available to undergraduate, graduate and professional students.

Qualifying for a Stafford Loan is not dependent on credit history or credit worthiness, but a borrower must be enrolled in school on at least a half-time basis and must meet certain other federal financial aid eligibility criteria. Stafford Loans are obtained in the student’s name, not the parent or guardian’s name.

Completion of the Free Application for Federal Student Aid (FAFSA) is required to determine eligibility.

Subsidized
Subsidized Stafford Loans are “need-based” with loan amounts determined by the school’s financial aid office using federal financial aid guidelines. On subsidized Stafford Loans, the government pays the interest until repayment begins six months after you leave school or your enrollment drops below half-time.

Unsubsidized
Some students are eligible to receive an unsubsidized Stafford Loan to help pay their cost of attendance regardless of need. On unsubsidized Stafford Loans, the borrower is responsible for all interest that accrues on the loan while in school. Most unsubsidized Stafford borrowers allow their in-school interest to be added to their loan principal (capitalized) rather than paying it while in school. However, this increases the amount that must be repaid.

Loan Limits
You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you don't exceed the annual loan limits.

If you're a dependent undergraduate student (excluding students whose parents cannot borrow PLUS Loans), each year you can borrow up to:

• $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount can be in subsidized loans.
• $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount can be in subsidized loans.
• $7,500 if you've completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount can be in subsidized loans.

If you're an independent undergraduate student (and a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan)), each year you can borrow up to:

• $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.
• $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized loans.
• $12,500 if you've completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized loans.

If you're a graduate or professional degree student, each year you can borrow up to:

• $20,500. No more than $8,500 of this amount may be in subsidized loans.

When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford Loans received for undergraduate study. However, the aggregate loan limit for graduate and professional students enrolled in certain approved health profession programs is $224,000.

Because you can't borrow more than your cost of attendance minus the amount of any Federal Pell Grant you're eligible for and minus any other financial aid you'll get, you may receive less than the annual maximum amounts.

Interest Rates
The Stafford fixed interest rate may depend on your year in school when the loan is disbursed and if you are a dependent or independent student at that time.

• loans first disbursed July 1, 2010 – June 30, 2011, the fixed interest rate = 4.5%
• loans first disbursed July 1, 2011 – June 30, 2012, the fixed interest rate = 3.4%
• loans first disbursed on or after July 1, 2012, the fixed interest rate = 6.8%
• subsidized Stafford Loans disbursed to graduate and professional students, the fixed interest rate is 6.8%
• unsubsidized Stafford Loans disbursed to undergraduates and graduate students, the fixed interest rate is 6.8%

Repayment
Repayment of Stafford Loans is not required until six months after the student is no longer in school or enrollment drops below half-time. Generally, a Stafford Loan must be repaid within a 10-year period to the loan servicer, such as OSLA.