Stafford Loans

The Stafford Loan program is available to undergraduate and graduate students through the Federal Direct Loan Program (FDLP). Annual and aggregate loan limits apply, and these loans have a fixed interest rate that will not exceed 6.8%.

Subsidized and Unsubsidized Stafford Loans
There are two categories of Stafford loans: subsidized and unsubsidized. The difference between the two is the amount of interest you pay on the loan.

Subsidized loans are those loans for which the government pays the daily interest your loan builds while you are enrolled at least half-time and during any approved periods of deferment or forbearance. The government distributes subsidized loan amounts based on financial need.
Unsubsidized loans are those loans for which you, the borrower, have to pay all accrued interest. The government does not offer any assistance relating to interest payments for unsubsidized loans.

How Do I Apply?

Start by completing the Free Application for Federal Student Aid (FAFSA). Then contact the school you are planning to attend for additional information on receiving a Stafford Loan.

Stafford Loan Limits
These annual loan limits apply to loans disbursed on/after July 1, 2008.

	Dependent Undergraduate	Independent Undergraduate	Graduate or Professional Student
1st Year	$3,500–Plus $2,000 unsubsidized.	$9,500–No more than $3,500 of this amount may be in subsidized loans.	$20,500–No more than $8,500 of this amount may be in subsidized loans.
2nd Year	$4,500–Plus $2,000 unsubsidized.	$10,500–No more than $4,500 of this amount may be in subsidized loans.
3rd Year (and higher)	$5,500–Plus $2,000 unsubsidized.	$12,500–No more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate	$23,000–Plus $2,000 unsubsidized.	$57,500–No more than $23,000 of this amount may be in subsidized loans.	$138,500–No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.