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Stafford loans are taken out by the student and do not require a co-signer. The rate is set by the federal government. There are no payments required until six months after you graduate or fall below half-time status.
Stafford loans come in two versions: subsidized and unsubsidized. For subsidized loans, the federal government pays your interest on these loans while you are in school, in grace or in authorized deferment status. For unsubsidized loans, interest will accrue unless paid monthly or quarterly.
Annual loan limits and interest rates:
There are federal loan limits on how much a student can borrow with a Stafford loan. The tables below shows the annual limits. The amount can be all subsidized, unsubsidized, or a combination, not to exceed the annual limit. The annual loan limits for dependent undergraduate students are:
Grade
Level |
Possible Subsidized Maximum |
Combined Subsidized & Unsubsidized Maximum |
Freshman |
$3,500 |
$5,500 |
Sophomore |
$4,500 |
$6,500 |
Junior |
$5,500 |
$7,500 |
Senior |
$5,500 |
$7,500 |
The annual borrowing limits for independent students are:
Grade Level |
Possible Subsidized Maximum |
Combined Subsidized & Unsubsidized Maximum |
Freshman |
$3,500 |
$9,500 |
Sophomore |
$4,500 |
$10,500 |
Junior |
$5,500 |
$12,500 |
Senior |
$5,500 |
$12,500 |
Graduate |
$8,500 |
$20,500 |
Typically a student is deemed independent once they turn 24 years of age. They could also get independent status if they are married or have a dependent child of their own prior to their 24th birthday. If the parents of a student are deceased, the student would also be considered independent. Once a student is independent, their parents' information is no longer needed on the FASFA.
The aggregate, or lifetime, borrowing limits are:
Student Type |
Subsidized Maximum |
Combined Subsidized & Unsubsidized Maximum |
Dependent Undergraduates |
$23,000 |
$31,000 |
Independent Undergraduates |
$23,000 |
$57,500 |
Graduate Students (Includes loans borrowed as an undergraduate.) |
$65,500 |
$138,500 |
Legislation from 2007 will result in lower rates on undergraduate subsidized Stafford loans. These undergraduate subsidized Stafford loans will have a fixed rate based on the year they were disbursed. These rates are shown in the table below. All unsubsidized Stafford loans and graduate level subsidized Stafford loans will remain at a fixed 6.8%.
Undergraduate Subsidized
Stafford
Loan
Disbursement Period |
Undergraduate Subsidized Stafford Loan Interest Rates
In-School/Grace/ Deferment/Repayment |
7-1-08 through 6-30-09 |
6.0% |
7-1-09 through 6-30-10 |
5.6% |
7-1-10 through 6-30-11 |
4.5% |
7-1-11 through 6-30-12 |
3.4% |
7-1-12 through 6-30-13 |
6.8% |
Note: Stafford loans disbursed prior to July 1, 2006 will remain at a variable rate,
capped at 8.25%. The above loan limits are for loans disbursed after July 1, 2008. Prior school years had different limits.
If the Stafford loan is not enough, there are other financing options available. Please take a look at our other loan options or contact us.
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