Stafford Loan

A Stafford Loan is a government guaranteed loan offering low interest rates and deferred payment options. The Stafford loan can be a subsidized Stafford loan or an unsubsidized Stafford loan. With a subsidized Stafford loan, the government often pays interest on the loan until you graduate from college. To qualify for a subsidized Stafford loan, you must demonstrate financial need. An unsubsidized Stafford loan still offers you the same low interest rate as the subsidized version, but you have to pay the interest on the loan from the date of origination. To get a Stafford loan you must first fill out the FAFSA (Free Application for Federal Student Aid) to determine if you're eligible. Federal Stafford Loans are not automatically included in your offer of financial aid. You must still apply for a Stafford Loan.

Stafford Loans

There are limits to the amount one can get from a Stafford loan. The amount you can borrow under the Stafford Loan program is determined by your year in school, your dependency status, and the amount your family can financially contribute to your education. The chart below details the maximum amount of aid you can receive from a Stafford loan depending on your college grade level.

	Dependent Undergraduate	Independent Undergraduate	Graduate or Professional Level	Graduate Medical Level
1st Year	$3,500.00 Subsidized	$3,500.00 Subsidized $4,000.00 Unsubsidized	$8,500.00 Subsidized $12,000.00 Unsubsidized	$8,500.00 Subsidized $32,000.00 Unsubsidized
2nd Year	$4,500.00 Subsidized	$4,500.00 Subsidized $4,000.00 Unsubsidized	$8,500.00 Subsidized $12,000.00 Unsubsidized	$8,500.00 Subsidized $32,000.00 Unsubsidized
3rd Year and Higher	$5,500.00 Subsidized	$5,500.00 Subsidized $5,000.00 Unsubsidized	$8,500.00 Subsidized $12,000.00 Unsubsidized	$8,500.00 Subsidized $32,000.00 Unsubsidized

Federal Stafford Loan

Federal Stafford loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation. Stafford federal student loans can also be consolidated after graduation, making them even more affordable. The Federal Stafford Loan is a low-interest education loan that must be repaid.