Federal Stafford Loan

The Subsidized Federal Stafford Loan is based on financial need. The federal government pays the interest on the loans while students are in school.

The Unsubsidized Federal Stafford Loan is not based on financial need. It is available to any student whose education costs are higher than the amount of financial aid awarded. Students are responsible for the interest payments, even while they are in school.

Undergraduate, graduate, vocational and professional students are eligible for loans. Loan repayment on both loans begins six months after students graduate or drop to less than half-time enrollment. Money for the loan comes from either the federal government or a bank, credit union, or other participating lender. The interest rate is adjusted annually, with a maximum of 8.25 percent.

Eligibility

To be eligible, you must meet the following criteria:

Have demonstrated financial need based on a completed Free Application for Federal Student Aid (FAFSA)(Subsidized student loan only);
Have a high school diploma or General Education Development (GED) certificate, or pass a test approved by the U.S. Department of Education;
Be working toward a degree or certificate;
Be enrolled in an eligible program;
Be a U.S. citizen or eligible noncitizen and have a social security number; and
Register with the Selective Service if required.

Limit

Loan limits vary. See the chart below for the maximum annual and lifetime amounts students can borrow through the Stafford loan program.

STAFFORD LOAN LIMITS
	Independent Students	Dependent Students
	Annual Limits
1st Year	$6,625	$2,625
2nd Year	$7,500	$3,500
3rd Year and 4th Years	$10,500	$5,500
Graduate/Professional	$18,500	Not applicable
	Total Limits
Undergraduate	$46,000	$23,000
Graduate/Professional	$138,500	Not applicable

How to Apply

File a Free Application for Federal Student Aid (FAFSA). Your school financial aid office will review the results and determine your eligibility. You then will need to complete a separate application for a loan. Ask your school financial aid office for a loan application.

For more information, contact:
Federal Student Aid Information Center
U.S. Department of Education
Phone: 1.800.433.3243
(TTY: 1.800.730.8913)

Up to $5,000 to Complete Your Bachelor's Degree.
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