Stafford Loans

A subsidized Stafford Loan is 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.

An unsubsidized Stafford Loan is not awarded on the basis of 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 while you’re in school or during other periods of nonpayment, it will be capitalized.

With both the federal subsidized and federal unsubsidized Stafford Loan, the maximum a dependent student can receive is related to their year in school. First-year students receive up to $3,500, 2nd year up to $4,500, 3rd and 4th years up to $5,500 and graduate students can receive up to $8,500. For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.

Flexible repayment options are available, including consolidation, and there is no prepayment penalty. No credit check is required. Six month grace period when no payments are required immediately following your graduation or dropping to less than half-time status."