Low-interest subsidized and unsubsidized loans guaranteed by the federal government and available to students to fund education.
These are federal loans available to you through local lenders. There are two types of Stafford Loans: Subsidized and Unsubsidized. For the Subsidized Stafford Loan, you must demonstrate need, and you pay nothing on the loan while in school. Repayment begins 6 months after leaving school. Unsubsidized Stafford Loans are available to non-need students, but require interest payments while in school.
loans made to undergraduate and graduate students under the FFELP and Direct Loan program. Borrowers can receive FFEL or Direct Stafford Loans regardless of financial need. Interest rates vary but cannot exceed 8.25 percent.
Low interest loans available to students through federal programs. Stafford loans may be subsidized if you demonstrate sufficient financial need. There is a limit to the amount you can borrow. To apply, you need to fill out an FAFSA (Free Application for Federal Student Loans).
Federal educational loans for undergraduate and graduate students. The interest for these loans are either subsidized or unsubsidized, and is a variable rate, determined by the Federal government.
Federal loans that come in two forms, subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans aren't. The interest on the subsidized Stafford Loan is paid by the federal government while the student is in school and during the 6 month grace period. The Subsidized Stafford Loan was formerly known as the Guaranteed Student Loan (GSL). The Unsubsidized Stafford Loan may be used to pay the EFC. Undergraduates may borrow up to $23,000 ($2,625 during the freshman year, $3,500 during the sophomore year and $5,500 during the third, fourth and fifth years) and graduate students up to $65,500 including any undergraduate Stafford loans ($8,500 per year). These limits are for subsidized and unsubsidized loans combined. The difference between the subsidized loan amount and the limit may be borrowed by the student as an unsubsidized loan.
Stafford loans are federal educational loans for undergraduate and graduate students. The interest is either subsidized or unsubsidized, and is a fixed rate of 6.8%. Dependent undergraduate students can borrow up to $23,000, independent undergraduates can borrow up to $46,000, and graduate students can borrow up to $138,500, including any undergraduate Stafford loans. Borrowers are charged a 2% origination fee* and a 1% federal default fee (some guarantors waive this fee), which is deducted from the loan before it is disbursed. *Some lenders pay the origination fee so Stafford borrowers receive the full amount of the loan. Please review the list of our Partnering Lenders for a complete listing of lenders offering this option. Back to glossary main page
Stafford loans are federal educational loans for undergraduate and graduate students. The interest is either subsidized or unsubsidized, and is variable, based on the 91-day Treasury Bill rate plus 3.1% or 3.25%. The interest is capped at 8.25%. Dependent undergraduate students can borrow up to $23,000, independent undergraduates can borrow up to $46,000, and graduate students can borrow up to $138,500, including any undergraduate Stafford loans. Borrowers are charged a 3% origination fee and a 1% insurance fee, which is deducted from the loan before it is disbursed.
Loans made available to students through the Direct Loan Program and the Federal Family Education Loan Program (FFEL).
Loans, subsidized (need-based) and unsubsidized (non-need-based), guaranteed by the federal government and available to students to fund education.
These are student loans offered by the federal Government. There are two types of Stafford Loans -- one need-based and another non-need-based. Under the Stafford Loan programs, students can borrow money to attend school and the federal Government will guarantee the loan in case of default. Under the Stafford Loan programs, the combined loan limits are $2,625 for the first year, $3,500 for the second year, $5,500 for the third or more years. An undergraduate cannot borrow more than a total of $23,000.
There are two kinds of Federal Stafford Loans that are used to borrow money for education. The Federal Stafford Subsidized Loan is one where you don't accumulate interest until after you leave school. The Federal Stafford Unsubsidized Loan is one where you do accumulate interest, although you don't pay it back until you leave school. To learn more, visit our Education Financing page.
These are the most popular and common federally guaranteed student loans. Interest rates on loans made before June 30, 2006, will vary with treasury rates. But starting July 1, 2006, all new Staffords will charge 6.8 percent. For the 2006–07 academic year, most freshmen will be limited to $2,625. Sophomores won't be able to borrow more than $3,500, and upperclassmen are limited to $5,500. (Students can borrow more if they are independent of their parents or their parents have been turned down for a PLUS loan.) The loan money must first be applied to pay for tuition, fees, room, board, and other school charges. If money remains, the student will receive the funds by check or in cash. The maximum total debt from Stafford loans for a dependent undergraduate student is $23,000.