Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $6,000. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rates may vary based on when the loan is borrowed.
There are two types of Stafford loans:
- Subsidized Stafford loan – A loan for which the government pays the interest while you are in school, during grace periods, and during any deferment periods.
- Unsubsidized Stafford loan – A loan for which you are responsible for paying all the interest that accrues from the date of the first disbursement until the loan is paid in full.
You must be enrolled in at least 6 credits to receive Stafford Loans
Subsidized -Federal Subsidized Stafford Loans are need-based loans that must be repaid. 5.05% fixed interest rate, 1.066% origination fee, federal government pays interest while enrolled at least half time, 6 month grace period
Unsubsidized – Federal Unsubsidized Stafford Loans are non-need-based loans that must be repaid. 5.05% fixed interest rate, 1.066% origination fee, interest is charged from the time you receive the funds, 6 month grace period and 6.60% for graduate and professional students.
Annual Stafford Loan limits
Year in School | Credit Hours | Dependent Subsidized+Unsubsidized | Independent or dependent w/PLUS denial Subsidized+Unsubsidized |
Freshman | 0-23.9 | $3,500 + 2,000 | $3,500 + $6,000 |
Sophomore | 24-55.9 | $4,500+ 2,000 | $4,500 + $6,000 |
Junior | 56-87.9 | $5,500+ 2,000 | $5,500 + $7,000 |
Senior | 88-124 | $5,500+ 2,000 | $5,500 + $7,000 |
Aggregate Subsidized Loan Limit -$23,000
Undergraduate
- Dependent—$31,000 Independent (up to $23,000may be subsidized)
- Independent students and dependent students whose parents cannot borrow PLUS = $57,500 (up to $23,000 may be subsidized)
Graduate
- Subsidized = $65,500 (includes undergraduate borrowing)
- Unsubsidized = $138,500 (included undergraduate borrowing)