Federal Stafford Loans

Stafford Loans are low-cost education loans insured by the federal government made to students. These loans are available to undergraduate and graduate students who are enrolled at least half-time at an eligible institution. Loan funds must be used for school budgeted costs such as tuition, fees, books, supplies, room and board, and miscellaneous expenses.

There are two types of Federal Stafford Loans, subsidized (based on financial need) and unsubsidized (not based on financial need).

• Eligibility Criteria
• Loan Limits, Fees and Other Information
• Application Process
• Repayment and Interest

Apply for a Stafford Loan

Eligibility Criteria:

The student must:

• be a U.S. citizen or an eligible non-citizen,
• have completed and filed a Free Application for Federal Student Aid (FAFSA),
• be enrolled at least half-time at a federally accredited school,
• not be in default on any student loan,
• maintain satisfactory academic progress,
• comply with selective service registration,
• not owe a refund on any federal student grant, and
• not be incarcerated.

Loan Limits, Fees and Other Information:

Federal Family Education Loan Program (FFELP)¹

Dependent Undergraduate Loan Limits
	Base Stafford2	Additional Unsubsidized Stafford	Total Stafford (Subsidized and Unsubsidized)
First Year	$3,500	$2,000	$5,500
Second Year	$4,500	$2,000	$6,500
Third Year and Beyond	$5,500	$2,000	$7,500
Independent Undergraduate Loan Limits (and a Dependent Undergraduate whose parent is unable to borrow a PLUS Loan)
First Year	$3,500	$6,000	$9,500
Second Year	$4,500	$6,000	$10,500
Third Year and Beyond	$5,500	$7,000	$12,500
Graduate Loan Limits
Graduate Students	$8,500	$12,000	$20,500
Aggregate Loan Limits
	Maximum Subsidized Stafford	Additional Unsubsidized Stafford	Total Stafford (Subsidized and Unsubsidized)
Dependent Undergraduates	$23,000	$8,000	$31,000
Independent Undergraduates	$23,000	$34,500	$57,500
Graduate Students	$65,500	$73,000	$138,500
Loan Terms
		Subsidized Stafford	Unsubsidized Stafford
Interest Rate - Undergraduate		6% Fixed	6.8% Fixed
Interest Rate - Graduate		6.8% Fixed	6.8% Fixed
Federal Default Fee3		1%	1%
Origination Fee		1%	1%
Credit Checks		NO	NO
Must Show Financial Need		YES	NO
Grace Period4		6 months after graduation or enrollment is less than half time	6 months after graduation or enrollment is less than half time
Repayment Term		10 Years	10 Years
In-School Payments Deferred
Principal		YES	YES
Interest		N/A5	YES6
Interest Capitalization		N/A5	At Repayment

Application Process:

Click here for more information

Repayment and Interest:

Stafford Loans must be repaid.

A "Subsidized" Stafford Loan means that the federal government will pay all the interest on your loan until you begin repayment. Repayment will start six months after you graduate or cease to be enrolled at least half-time.

With an "Unsubsidized" Stafford Loan, you are responsible for all the interest from the day the loan is disbursed. While the loan is in an in school, grace, deferment or forbearance status, you may pay the interest quarterly or add the accrued interest to the principal when repayment begins (capitalization).

Repayment of your Stafford Loan is initially set up as using a standard plan; you pay the same amount each month. National Education offers other payment plans to help fit your budget. A change in payment plan can reduce your initial payments by up to 40%.

Alternative payment plans, deferments and forbearance are available to help you manage the repayment of your Stafford Loan.

Tips to remember:

• The student is the borrower and is responsible for paying back the loan.
• Loans are expected to be repaid within ten years.
• No penalty for early repayment; you can pay more than the monthly amount if you wish.
• There is a 6 month grace period after graduation or when you are enrolled less than half time.
• Payments are not required while you are enrolled in school at least half time and during the grace period.
• Repayment begins after the 6 month grace period ends.
• The interest rate for Stafford Loans made on or after July 1, 2008, is:
• fixed at 6% for subsidized Stafford Loans made to undergraduates
• fixed at 6.8% for subsidized Stafford Loans made to graduates
• fixed at 6.8% for unsubsidized Stafford Loans made to undergraduates and graduates
  
  (see current interest rates)

We reserve the right to modify or discontinue benefit programs at any time without notice. Any termination or modification of the program will not affect the terms of loans previously made. Specific terms and conditions may apply, please call us if you have any questions.