Click here to apply for a Stafford Loan!

FEDERAL STAFFORD LOANS

Stafford Loans are low-cost education loans insured by the federal government. They are available to students attending an eligible institution at least half-time. The loan funds must be used for school costs including tuition, fees, books, supplies, room and board. Please see the accompanying chart for details on amounts, rates, and other conditions of eligibility.

There are two types of Federal Stafford Loans, subsidized (based on financial need) and unsubsidized (not based on financial need).

• Eligibility Criteria
• Loan Limits, Fees and Other Information
• Application Process
• Repayment and Interest

Eligibility Criteria

The student must:

• be a U.S. citizen or an eligible non-citizen,
• have completed and filed a Free Application for Federal Student Aid (FAFSA),
• be enrolled at least half-time at a federally accredited school,
• not be in default on any student loan,
• maintain satisfactory academic progress,
• comply with selective service registration,
• not owe a refund on any federal student grant, and 
• not be incarcerated. 

- TOP -

Federal Family Education Loan Program (FFELP)1 Rates, Limits, and Fees effective 7/1/09 through 6/30/10
Dependent Undergraduate Loan Limits
	Base Stafford2	Additional Unsubsidized Stafford	Total Stafford (Subsidized and Unsubsidized)
First Year	$3,500	$2,000	$5,500
Second Year	$4,500	$2,000	$6,500
Third Year and Beyond	$5,500	$2,000	$7,500
Independent Undergraduate Loan Limits (And a Dependent Undergraduate whose parent is unable to borrow a PLUS Loan)
First Year	$3,500	$6,000	$9,500
Second Year	$4,500	$6,000	$10,500
Third Year and Beyond	$5,500	$7,000	$12,500
Graduate Loan Limits
Graduate Students	$8,500	$12,000	$20,500
Aggregate Loan Limits
	Maximum Subsidized Stafford	Additional Unsubsidized Stafford	Total Stafford (Subsidized and Unsubsidized)
Dependent Undergraduates	$23,000	$8,000	$31,000
Independent Undergraduates	$23,000	$34,500	$57,500
Graduate Students	$65,500	$73,000	$138,500
Loan Terms
		Subsidized Stafford	Unsubsidized Stafford
Interest Rate - Undergraduate		5.6% Fixed	6.8% Fixed
Interest Rate - Graduate		6.8% Fixed	6.8% Fixed
Federal Default Fee3		0% - 1%	0% - 1%
Origination Fee		0.5%	0.5%
Credit Checks		NO	NO
Must Show Financial Need		YES	NO
Grace Period4		6 months after graduation or enrollment is less than  half time	6 months after graduation or enrollment is less than  half time
Repayment Term		10 Years	10 Years
In-School Payments Deferred
Principal		YES	YES
Interest		N/A5	YES6
Interest Capitalization		N/A5	At Repayment

1. Students must be attending at least half-time.
2. If the borrower does not have financial need for a subsidized Stafford Loan, or has reached the aggregate limit in subsidized Stafford Loans, the borrower may receive up to this entire amount in unsubsidized Stafford Loans, based on eligibility.
3. The 1% Federal Default Fee may be paid for in full or in part by the guaranty agency.
4. Stafford Loan repayment normally begins 6 months after the student graduates or ceases to be enrolled at least half time.
5. The federal government pays the interest for subsidized Federal Stafford Loans while the student is enrolled at least half time.
6. Deferred interest is accrued and will be added to principal at repayment. Applies only to unsubsidized borrowing.

- TOP -

Application Process

- TOP -

Repayment and Interest

Stafford Loans must be repaid.

A "Subsidized" Stafford Loan means that the federal government will pay all the interest on your loan until you begin repayment. Repayment will start six months after you graduate or cease to be enrolled at least half-time.

With an "Unsubsidized" Stafford Loan, you are responsible for all the interest from the day the loan is disbursed. While the loan is in an in school, grace, deferment or forbearance status, you may pay the interest quarterly or add the accrued interest to the principal when repayment begins (capitalization).

Repayment of your Stafford Loan is initially set up as using a standard plan; you pay the same amount each month. National Education offers other payment plans to help fit your budget. A change in payment plan can reduce your initial payments by up to 40%.

Alternative payment plans, deferments and forbearance are available to help you manage the repayment of your Stafford Loan.

Tips to remember:

• The student is the borrower and is responsible for paying back the loan.
• Loans are expected to be repaid within ten years.
• No penalty for early repayment; you can pay more than the monthly amount if you wish.
• There is a 6 month grace period after graduation or when you are enrolled less than half time.
• Payments are not required while you are enrolled in school at least half time and during the grace period.
• Repayment begins after the 6 month grace period ends.
• The interest rate for Stafford Loans made on or after July 1, 2009, is:
  • fixed at 5.6% for subsidized Stafford Loans made to undergraduates
  • fixed at 6.8% for subsidized Stafford Loans made to graduates
  • fixed at 6.8% for unsubsidized Stafford Loans made to undergraduates and graduates 

                         (see current interest rates)

 

- TOP -

We reserve the right to modify or discontinue benefit programs at any time without notice. Any termination or modification of the program will not affect the terms of loans previously made. Specific terms and conditions may apply, please call us at 1-800-353-3357 if you have any questions.

(800) 353-3357
National Education
405 Silverside Road, Suite 200
Wilmington, DE  19809