Federal Stafford Loans

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Federal Stafford LoansFederal Stafford Loans

Federal Stafford Loans are the most common source of college loan funds. There are two types of Stafford loans: subsidized and unsubsidized.

SUBSIDIZED STAFFORD LOAN

Subsidized loans are need-based, and the federal government pays the interest on these loans while you are in school, during a six-month grace period immediately preceding repayment, and during authorized deferment. You become responsible for the interest at repayment - which begins 6 months after you drop below half-time enrollment.

If you do not qualify for Subsidized Stafford Loans, or need more money than the subsidized program can offer, you may qualify for an Unsubsidized Stafford loan, regardless of your family income. Except for the in-school interest provisions, both subsidized and unsubsidized Stafford loans have similar terms.

UNSUBSIDIZED STAFFORD LOAN

Unsubsidized loans are not need-based, and you are responsible for all of the interest that accrues on the loan, including while you are in school.

ELIGIBILITY

You must have submitted a Free Application for Federal Student Aid (FAFSA).
For subsidized Stafford loans, you must have financial need as determined by your school.
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
You must be enrolled or plan to enroll at least half time.
You must not be in default on any education loan or owe a refund on an education grant.

AMOUNTS AND LIMITS

Year in College

Dependent

Student

Independent Student or Students Whose Parents are Not Eligible for a PLUS Loan

Freshman

$5,500

(up to $3,500 may be subsidized)

$9,500 (up to $3,500 of this amount may be a

subsidized loan)

Sophomore

$6,500

(up to $4,500 may be subsidized)

$10,500 (up to $4,500 of this amount may be a

subsidized loan)

Junior or Senior

$7,500

(up to $5,500 may be subsidized)

$12,500 (up to $5,500 of this amount may be a subsidized loan)

Maximum Total Debt from Stafford Loans Upon Graduation

Dependent

Students

Independent Student or Students Whose Parents are Not Eligible for a PLUS Loan

$31,000 as a dependent undergraduate student (up to $23,000 of this amount may be in subsidized loans)

$57,500 as an independent undergraduate student (up to $23,000 of this amount may be in subsidized loans)

The interest rate is a fixed rate of 6.8%. Repayment begins six months after a student graduates, withdraws, or drops below half-time enrollment.

You are strongly encouraged to borrow only what you need. The loan amount on your award letter may show the maximum amount of loan eligibility for the Stafford Loan, although you may not need this amount to satisfy your financial obligation to the college. Loan borrowers may be charged a guarantee and/or an origination fee of up to 3% of the loan. For instance, if you borrow a $2,000 loan, you may only receive $1,940 ($2,000 minus the 3% fees).

First-time Stafford Loan borrowers at Emmanuel College will need to complete additional paperwork to borrow under the Stafford Loan program. Choosing a lender is an important part of the loan application process. Please access our "Lender List for Stafford Loans" (click here) to assist you in the application process.

These lenders are chosen as preferred because of their use of USA Funds, our guarantor and disbursing agent; the historical relationship with the college and processing speed and service.

To process a loan from another lender or guarantor, you must submit the paper application you obtain from your lender for our manual certification which will await a paper check from the lender. A pre-approval from ANY lender or guarantor can also delay your processing. This can result in delays and sometimes rejection of the loan.

The information on this page is provided by the lenders but is subject to change at any time; you are urged to check with the lender when choosing a lender based upon borrower benefits.