Stafford Loans. Subsidized and Unsubsidized.

The Federal Government pays the interest on subsidized loans while the student is in college or while the loan is in deferment. Interest begins accruing for unsubsidized loans as soon as the loan is taken out.

Amount that can be borrowed.

For the two types of loans, the maximums are $2,625 for Freshman, $3,500 for Sophomores, $5,500 for juniors and seniors, and $8,500 for graduate students. Undergraduates are considered for unsubsidized loans only after being rejected for a PLUS loan (see below). Graduate students can apply for an unsubsidized loan by requesting 1 from their counselor. You cannot take out subsidized loans in excess of your financial need. You cannot take out unsubsidized loans in excess of your cost of attending college.

Interest rates.

You pay a 3 percent origination fee that is deducted immediately from each loan disbursement. That’s $30.00 for every $1000.00 of loan funds. The interest rate for Federal Stafford loans is based on the ninety-one day Treasury Bills and is capped at 8.25%. Stafford loans taken out during the period of July 1, 2005 to June 30, 2006 have an interest rate of 4.70% during the in school, grace, and deferment periods and an interest rate of 5.30% during the repayment period.

Repayment begins 6 months after leaving college, payments are made each month, and you have 10 years to repay the loan. Payments are made to the lender.

Application process.

Fill out a FAFSA and indicate you are interested in a Stafford loan. Your FAFSA becomes your loan application.

Once the school receives your FAFSA and other required financial aid forms, your financial aid counselor will determine your eligibility for Stafford loan funds and will award them to you accordingly.

A Financial Aid Award Agreement will be sent to you.

Your lender will then send you a Master Promissory Note. Fill it out and return it to the lender. Students only need to fill this form out once in 10 years, so long they remain enrolled in college. After you’ve filled out a Master Promissory Note, you only need to continue filling out the FAFSA form and returning the Financial Aid Award Agreement to your college to receive Stafford loan funds.

Most lenders will transmit your funds electronically to your college, who will then credit the funds to your account.

Financial aid or Student aid are general terms that describe money available to students and their families to help offset the cost difference between a family’s Expected Family Contribution, or EFC, and the total cost of attending university.

Bluffton University Athletic Recruiting.

Bob Jones University Athletic Recruiting.

Boise State University Athletic Recruiting.

Borough Manhattan Community College Athletic Recruiting.

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