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Federal Stafford Subsidized Loans
What is a Stafford Loan?
This is the most popular type of student loan sponsored by the U.S. Government. There is no credit check. The interest rate is set by the government. This loan is available to students enrolled at least half-time (normally six semester hours) and who make satisfactory academic progress (normally a 2.0 grade point average out of 4.0). The amount you can borrow is based upon what year you are in school and if you are a dependent or independent student.
Additional Features & Benefits
When you complete the FAFSA, the school will determine if you qualify for a Stafford Interest Subsidy. If you qualify, the government will pay the interest that is accruing on your loan while you are in school and during the grace period for even greater savings.
• Federally sponsored loan
• Available at participating 2 year, 4 year, graduate and professional schools
• School must certify eligibility
• Guarantor must guarantee the loan
• Loan proceeds are sent to the school
• Interest Rate on new loans disbursed after July 1, 2006 is set at 6.8%
• Loans must be repaid in 10 years
• Repayment begins 6 months after the borrower is no longer in school on at lease a half-time basis
• You must pay a 1% Default Fee
• You must pay a 1.5% Origination Fee
• Fees are deducted from the loan proceeds sent to the school
Apply for by completing the Free Application for Federal Student Aid
