FEDERAL STAFFORD LOANS
WHAT IS A STAFFORD LOAN?
A Stafford loan is a federally-guaranteed, variable rate student loan that covers all or part of your undergraduate and graduate education. Federal loans are usually the most affordable loans available to students and families, with interest rates lower than most other forms of financing. Deferred payments (principal and interest) until after graduation and the ability to consolidate the loan after graduation make the Stafford loan even more appealing.
ELIGIBILITY REQUIREMENTS
STAFFORD LOANS ARE AVAILABLE TO QUALIFIED STUDENTS WHO ARE:
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Enrolled at least half-time as determined by the school
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U.S. Citizens or have eligible residential status
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Meet the school's academic criteria
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Not in default of any federal education loans
TYPES OF STAFFORD LOANS
UNSUBSIDIZED STAFFORD LOANS
These loans are available to all eligible students regardless of need. Students pay all of the interest that accrues during school and during approved deferments.
SUBSIDIZED STAFFORD LOANS
These loans are granted on a basis of need. The federal government pays the interest on the loan while the student is in school, during the six-month grace period before repayment begins, and during periods of approved deferment. The federal government determines your eligibility for a subsidized Stafford loan based on the information you provide on your Free Application for Federal Student Aid (FAFSA).
DOWNLOAD STAFFORD LOAN APPLICATION
Have Questions? Call One of Our Educated Student Loan Counselors at 1-1-888-947-2356 now!
INTEREST RATES
Stafford loan rates are currently 6.8% (based on rates from July1, 2006 until May 31, 2007 ). Stafford student loans have variable interest rates that are adjusted by the Federal Government every July 1. The current rate for Stafford student loans in grace is 6.54% and 7.14% for active repayment. The federal government has determined that the Stafford student loan rate will never exceed 8.25%.
TAX DEDUCTION
Some student loan borrowers may be able to deduct a portion of their interest costs for a given year. Please consult your tax advisor for more details.
STAFFORD LOAN AMOUNTS
Annual Stafford student loan borrowing limits (subsidized and unsubsidized):
Year 1 |
$3,500 |
Year 2 |
$4,500 |
Years 3 and 4 |
$6,500 (per year) |
Graduate Years |
$8,500 (per year) |
Additional unsubsidized funds that independent undergraduate students and graduate students may opt for include:
Years 1 and 2 |
$4,000 (per year) |
Years 3 |
$7,500 (per year) |
Years 3 and 4 |
10,500 (per year) |
Graduate Years |
$20,500 (per year) |
*Some Medical Students may be
eligible for up to 40,500 per year during Graduate
School.
Have Questions? Call One of Our Educated Student Loan Counselors at 1-1-888-947-2356 now!
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