Federal Stafford Loans
How do I find out if I am eligible for a Stafford Loan? Complete the FAFSA!
There are two types of Stafford Loans - subsidized and unsubsidized. The main difference between the two is the government will pay the interest on your subsidized Stafford Loan while you are in school, grace or deferment. You are responsible for the interest on an unsubsidized Stafford Loan at all times.
| |
Subsidized Stafford Loan |
Unsubsidized Stafford Loan |
| FAFSA Required? |
Yes, and student must meet financial needs test |
Yes, but student does not have to meet financial needs test |
| Minimum Enrollment |
Half-time |
Half-time |
| School Participation |
Required |
Required |
| Undergraduates or Graduates? |
Both |
Both |
| Interest Payments by Federal Government |
Yes, while the student is in school, grace or deferment |
No, student pays quarterly or allows interest to accrue and capitalize at repayment |
| Deferments |
Principal is deferred while the student is enrolled at least half-time |
Principal is deferred while the student is enrolled at least half-time |
| Repayment |
Begins six months after the student graduates or ceases to be enrolled at least half-time |
Begins six months after the student graduates or ceases to be enrolled at least half-time |
| Application/Promissory Note |
Required at least once. May be required annually depending on school or lender specifications |
Required at least once. May be required annually depending on school or lender specifications |
Annual Loan Limits
Effective July 1, 2008, additional unsubsidized Stafford loan limits were increased. Subsidized limits were unchanged. Students must be enrolled in an eligible program at least half-time.
| Dependent Students (excluding students whose parents were denied a PLUS Loan) |
Base Amount |
Additional Unsubsidized Amount |
| Prior to July 1, 2008 |
Effective July 1, 2008 |
| Freshman |
$3,500 |
$0 |
$2,000 |
| Sophomore |
$4,500 |
$0 |
$2,000 |
| Junior and Senior |
$5,500 |
$0 |
$2,000 |
| Independent Undergraduate Students AND Dependent Students Denied a Parent PLUS Loan |
Base Amount |
Additional Unsubsidized Amount |
| Prior to July 1, 2008 |
Effective July 1, 2008 |
| Freshman |
$3,500 |
$4,000 |
$6,000 |
| Sophomore |
$4,500 |
$4,000 |
$6,000 |
| Junior and Senior |
$5,500 |
$5,000 |
$7,000 |
| Graduate and Professional Students |
Base Amount |
Additional Unsubsidized Amount |
| |
$8,500 |
Unchanged at $12,000 |
Aggregate Loan Limits
Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students: $57,500 (no more than $23,000 may be in subsidized loans)
Graduate Students: $138,500 (no more than $65,500 may be in subsidized loans)