Stafford Loans

The Stafford Loan program is by far the most popular form of financial aid offered in the Federal Family Education Loan Program (FFELP). It is available to both undergraduate and graduate students.

This is a form of financial aid that must be repaid and is a serious financial commitment. Currently Stafford loans are experiencing historically low interest rates, but this program has a cap so that the interest rate can never exceed 8.25%.

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?


Find out if you qualify for a Stafford loan by completing the Free Application for Federal Student Aid (FAFSA). The results of your application will tell you whether you qualify for a Stafford and what your loan limits are.
Once you know that you qualify for a Stafford, the next step is to apply for one. You can apply for a Stafford loan online, and if you have your Personal Identification Number (PIN) from the Department of Education, you can electronically sign your application, speeding up the processing time.
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 $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 $10,500–No more than $4,500 of this amount may be in subsidized loans.
3rd Year
(and higher) $5,500 $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 $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.


Back to Top