Federal Stafford Loan

Loans through this government sponsored low interest loan program are in the student's name and do not require a co-signer or credit check.

• Subsidized loans are awarded to students with financial need.
  The government pays the interest while the student is enrolled at least half-time.
  
• Unsubsidized loans are awarded to students who do not have financial need.
  Interest does accrue during the in-school period.

Recent federal legislation increased the maximum amount that a student may borrow through the Federal Stafford Loan Program.

Maximum undergraduate borrowing is $31,000.

To apply students must complete the Free Application for Federal Student Aid (FAFSA) and submit a Loan Request Form. A Master Promissory Note (MPN) must also be completed and returned to the lender/guarantor.

First-time borrowers are required to go through a process called "Entrance Counseling" that will inform them about their rights and responsibilities as borrowers. Please note that Stafford Loan funds cannot be released until this process has been completed.

A similar process called "Exit Counseling" must be completed when a student graduates or drops to less than half-time status. 

Interest Rates

Subsidized Federal Stafford Loans (for undergraduate students):

• July 1, 2008-June 30, 2009 - 6%
• July 1, 2009-June 30, 2010 - 5.6%
• July 1, 2010-June 30, 2011 - 4.5%
• July 1, 2011-June 30, 2012 - 3.4%

Unsubsidized Federal Stafford Loans:  6.8%

Repayment Period: 10 years

Grace Period: 6 months

NOTE: If a student's parent is unable to obtain a PLUS Loan, the student may qualify for additional unsubsidized Federal Stafford Loan funds. At the first-year and sophomore levels, the student may borrow to a maximum of $4,000 in additional funds each year. During the junior and senior years the amount increases to $5,000 per year.