Financial Aid Step 2
Stafford Entrance Topic 2 of 6: Loan Types
Under the Federal Family Education Loan Program (FFELP), lenders such as banks, credit unions, savings and loan associations, and state agencies can make loans.
As a borrower, you must pay an origination fee and a federal default fee, which are deducted from each disbursement. Some guarantors and/or lenders might pay the fees on your behalf. Check with your school for a list of guarantors and/or lenders that provide these savings.
All loans below are federally guaranteed.
Subsidized Stafford Loan
- This is a need-based loan.
- Interest on the loan is paid by the federal government while you are in school, during your grace period, and during authorized periods of deferment.
- During periods of forbearance, you will be responsible for interest that accrues on your subsidized loans.
- The interest rate will be fixed at 6.8 percent.
- You must be enrolled at least half-time to qualify.
- Repayment of principal balance begins six months after you are no longer enrolled on at least a half-time basis.
Unsubsidized Stafford Loan
- This is not a need-based loan.
- You are responsible for paying the interest on your loan from the date of disbursement.
- The interest rate will be fixed at 6.8 percent.
- You must be enrolled at least half-time to qualify.
- Repayment of principal balance begins six months after you are no longer enrolled on at least a half-time basis.
Maximum Annual Loan Amounts for Loan Periods
Beginning on or After (or Including) July 1, 2007
| Borrower’s Academic Level |
Dependent* StudentSubsidized & Unsubsidized |
Independent Student |
||||
|
** |
Unsub- |
Total |
||||
| First Year Undergraduate |
$3,500 |
$3,500 |
+ |
$4,000 |
= |
$7,500 |
| Second Year Undergraduate |
$4,500 |
$4,500 |
+ |
$4,000 |
= |
$8,500 |
| Third Year & Remaining Undergraduate |
$5,500 |
$5,500 |
+ |
$5,000 |
= |
$10,500 |
| Graduate or Professional Student |
N/A |
$8,500 |
+ |
$12,000 |
= |
$20,500 |
| * | Dependent students whose parents cannot borrow under the Federal Parent Loans for Undergraduate Students (PLUS) program may be able to borrow up to the independent student limits, depending on school policy. |
| ** | Independent students who are not eligible for a full subsidized Federal Stafford Loan may borrow their remaining subsidized eligibility under the unsubsidized program (example: a first-year undergraduate student receives $2,500 of $3,500 total eligibility under the subsidized Federal Stafford Loan Program. The borrower may apply for the remaining $1,000 under the unsubsidized Federal Stafford Loan Program, making the total amount of unsubsidized eligibility $5,000). |
|
Total Cumulative Stafford Loan Limits |
|||
| Dependent Undergraduate |
PLUS Loans | Independent Undergraduate |
Graduate |
| $23,000 (subsidized and unsubsidized) |
No limit |
$46,000 (subsidized and unsubsidized with subsidized limited to $23,000) |
$138,500 (subsidized and unsubsidized with subsidized limited to $65,500, includes any loans outstanding from undergraduate study) |
Loan Amounts for Health Professions Students
Certain health professions students may be eligible for additional unsubsidized Federal Stafford loan amounts, as follows:
- Annual: Depending on the program of study, the annual loan limit will be the lesser of:
- the student’s cost of attendance less other financial aid or
- the student’s regular unsubsidized Stafford Loan limit plus the student’s applicable HEAL loan maximum
- Aggregate: Not more than $189,125 with subsidized funds comprising no more than $65,000 of this amount (undergraduate 5-year pharmacology limits are less)
IIEI Financial Aid Home
Step 1 - Stafford Entrance Topic 1 of 6: Applying for a Federal Stafford Loan
Step 2 - Stafford Entrance Topic 2 of 6: Loan Types
Step 3 - Stafford Entrance Topic 3 of 6: Understanding Student Loan Borrowing
Step 4 - Stafford Entrance Topic 4 of 6: Repayment of Your Student Loan
Step 5 - Stafford Entrance Topic 5 of 6: Solutions for Loan Repayment Problems
Step 6 - Stafford Entrance Topic 6 of 6: Delinquency and Default
Step 7 - Review what you’ve read and take the Financial Aid Entrance Quiz