Federal Stafford Loans
Loan Limits for Stafford Loans
Disbursement Schedule
Repayment
Sample Repayment Amounts
Deferment
Forbearance
Loan Consolidation
Federal Subsidized Stafford Loan - awarded on the basis of financial need. You won't be charged any interest before you begin repayment or during deferment periods. The federal government "subsidizes" the interest during these periods.
Federal Unsubsidized Stafford Loan - not awarded on the basis of financial need. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school or during periods of nonpayment, it will be capitalized. This means that interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
Registration and Attendance Requirement
- Stafford loan borrowers must register for at least 6 credit hours on or before the 12th class day of each Fall and Spring semester. Financial aid is not provided for classes added after the 12th class day of the 16-week semester.
- The student must be certified by their instructors as attending at least 6 credit hours, in order to be eligible for Stafford Loans and PLUS loans. If classes are NOT CERTIFIED or students are certified as NOT ATTENDED, students cannot receive financial aid (including grants, loans, work-study) of any kind.
- For students taking FAST TRACK classes, funds CANNOT be released until at least 6 credit hours has been certified ATTENDED.
Interest Rates
The interest rate on these loans is variable (might change each year) but does not exceed 8.25%. For July 1, 2007 to June 30, 2008 , the interest rate for loans in repayment is 6.8% and during in-school, grace and deferment period is 6.8%. Interest rates are adjusted each year on July 1st. You will be notified by your lender of interest changes throughout the life of your loan.
If you have subsidized loans, you won't be charged interest while you're enrolled in school at least half-time (6 hours), during a grace period, or during authorized periods of deferment. Interest will accrue when you enter repayment.
If you have unsubsidized loans, you will be charged interest from the day the loan is disbursed until it is paid in full, including in-school, grace, deferment, and forbearance periods. You can pay the interest during these periods, or it can be capitalized.