Stafford Loans

Stafford loans are available for students enrolled at least half-time in a qualifying program and who are in good academic standing. Stafford loans may be either subsidized or unsubsidized and must be repaid. The interest rate for Stafford loans is variable. The federal government determines interest rates on July 1 of each year. The amount a student can borrow per academic year will depend upon enrollment, dependency status, and other aid received.

Subsidized loan funds are awarded based on financial need.  The federal government pays the student's interest while he/she is enrolled in school at least half-time in a qualifying program.  The student begins paying interest when repayment of the loan begins.

Unsubsidized loan funds are not need based.  The student will be charged interest from the time funds are disbursed until the loan is paid in full.  Students may choose to make monthly interest payments while in school, or they can choose to defer interest payments.  If the student chooses to defer interest, it will accrue and will be added to the principal amount of the loan.  Please note, if interest is capitalized, it will increase the amount the student has to repay.

Students may receive a subsidized and unsubsidized loans for the same enrollment period.  The interest rate for subsidized Stafford loans disbursed on or after July 1, 2008, but before July 1, 2009, is 6.0%.  Subsidized Stafford loans disbursed on or after July 1, 2009, but before July 1, 2010, will have an interest rate of 5.6%. The interest rate for unsubsidized Stafford loans made on or after July 1, 2008 is 6.8%. The interest rate for unsubsidized Stafford loans for the 2009-10 academic year will remain the same. In addition to interest, students will be charged a fee of up to 4% of the loan which will be deducted proportionately from each loan disbursement.  A portion of this fee goes to the federal government, and a portion goes to the guaranty agency to help reduce the cost of the loans.

Please see the menu to the right to learn more about Stafford loans and how to apply.