What is a Stafford Loan ?
Key Facts of Federal Stafford Loan
- The Department of Education provides undergraduate and graduate students with direct Stafford loans, which are direct loans.
- Depending on whether you are a dependent and what year of school you are in, the loans have maximum borrowing limitations.
- Subsidized and unsubsidized Stafford loans are separated.
- There are eight different repayment plans available.
Max
Loan Length |
30 years, depending upon amount borrowed and
repayment plan chosen |
Interest
Rate |
Variable, does not exceed 8.25% |
Max
Loan Amount |
up to $ 20,500 annually |
Payment
Frequency |
Monthly |
Prepayment
Penalties |
None |
Fees |
Up to 4% of the loan |
How Does a Direct Stafford Loan Work ?
Types of Stafford Loan
Who is Eligible for a Stafford Loan ?
- Be a citizen, national, or eligible non-citizen of the United States.
- Be enrolled at least half-time in an eligible degree or certificate-granting program.
- Possess a high school diploma or an equivalent qualification.
- Not in arrears on any federal student loans already in existence.
- Meet the standards for general eligibility for federal student aid.
Stafford Loan Borrowing Limits
- Are you a dependent ?
- What year are you in school ?
YEAR |
DEPENDENT |
INDEPENDENT |
First-year (0-29 credits)
|
$5,500 ($3,500 subsidized, $2,000 unsubsidized) |
$9,500 ($3,500 subsidized, $6,000 unsubsidized) |
Second-year (29.1-59 credits)
|
$6,500 ($4,500 subsidized, $2,000
unsubsidized) |
$10,500 ($4,500 subsidized, $6,000
unsubsidized) |
Third-year and beyond (59.1+ credits)
|
$7,500 ($5,500 subsidized, $2,000
unsubsidized) |
$12,500 ($5,500 subsidized, $7,000
unsubsidized) |
Graduate/ professional
|
Not applicable |
$20,500 (all unsubsidized) |
How Much is Stafford Loans ?
Aggregate maximum
subsidized loan limit |
Aggregate maximum
unsubsidized loan limit |
Total |
|
Dependent students |
$23,000 |
$8,000 |
$31,000 |
Independent students |
$23,000 |
$34,500 |
$57,500 |
Graduate students |
$65,500 |
$73,000 |
$138,500 |
What is the Interest Rate on Stafford Loans ?
Stafford Loan Fees
How Does the Stafford Loan Interest Rates Work ?
Direct Stafford Loan Repaying
How to Apply for Stafford Loan ?
Frequently Asked Questions (FAQs)
The standard repayment period for Stafford Loans is 10 years, but you can secure a longer repayment term if you have more than $30,000 in federal student loans. Payments are due after you graduate, leave school, or change your enrollment status to less than half-time.