Federal Direct Student Stafford Loans is a 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. 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, then you may qualify for an Unsubsidized Stafford Loan regardless of your family income.
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 the Office of Financial Aid.
You must be a U.S. citizen 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 for 2010-2011 is a fixed rate of 4.5% for Subsidized Loans and 6.8% for Unsubsidized Loans. Repayment begins six months after a student graduates, withdraws, or drops below half-time enrollment. Loan borrowers will be charged a fee of 0.5% for this loan. For instance, if you borrow a $2,000 loan, you will only receive $1,990 ($2,000 minus the 0.5% fees).
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.
Stafford Loan borrowers at Emmanuel College will need to complete:
