Financial Aid - Stafford Loans
All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although payments are deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need.
Stafford Loans allow dependent undergraduates to borrow up to $2,625 during their first academic year and up to $3,500 during their second academic year. Students enrolled in bachelor degree programs can borrow up to $5,500 for each remaining academic year. Independent students can borrow an additional unsubsidized $4,000 the first two years and $5,000 for remaining years in a bachelor program. Students may combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year.
Stafford Loans have variable interest rates, which are capped at 8.25% or less, depending on yearly adjustments. All lenders offer the same rate for the Stafford Loan, although some lenders give discounts for on-time and electronic payment.
Repayment begins six months after graduation. You must also begin repaying a Stafford Loan if your academic schedule falls below 1/2-time.
