Federal Stafford Loan
The type of Federal Stafford Loan a student may borrow is based mainly on the student's demonstrated need. Demonstrated need is the student's cost of attendance minus the expected family contribution, which is calculated from the information submitted on the Free Application for Federal Student Aid (FAFSA), minus other aid. The subsidized Federal Stafford Loan is awarded to students with demonstrated need and the federal government pays the interest while the student is in school, during the grace period, and during periods of deferment. The unsubsidized Federal Stafford Loan is awarded to students without demonstrated need and the student borrower pays the interest while in school and during the grace period; however, the student may defer the interest payment until the end of the grace period. Students may receive a combination of both loans depending on their eligibility of need versus no-need and their dependency status. Some independent students are eligible to borrow additional unsubsidized Federal Stafford Loan funds despite their demonstrated need.
Federal Stafford Loan Limits
Dependent Undergraduates:
- Freshmen may borrow up to $3,500 per year. Effective July 1, 2008, the amount is $5,500 (Not to exceed $3,500 in subsidized).
- Sophomores may borrow up to $4,500 per year. Effective July 1, 200, the amount is $6,500 (Not to exceed $4,500 in subsidized).
- Juniors and Seniors may borrow up to $5,500 per year. Effective July 1, 2008, the amount is $7,500 (Not to exceed $5,500 in subsidized
- The maximum that all undergraduates may borrow for all years is $23,000. Effective July 1, 2008 the amount is $31,000.
Independent Undergraduates:
- Freshmen may borrow up to $7,500 per year. (Not to exceed $3,500 in subsidized). Effective July 1, 2008, the amount is $9,500 (Not to exceed $3,500 subsidized).
- Sophomores may borrow up to $8,500 per year. (Not to exceed $4,500 in subsidized). Effective July 1, 2008, the amount is $10,500 (Not to exceed $4,500 in subsidized).
- Juniors and Seniors may borrow up to $10,500 per year. (Not to exceed $5,500 in subsidized). Effective July 1, 2008, the amount is $12,500 (Not to exceed $5,500 in subsidized).
- The maximum that all undergraduates may borrow for all years is $46,500. (Not to exceed $23,000 in subsidized). Effective July 1, 2008, the amount is $57,500. (Not to exceed $23,000 in subsidized).
Students may never borrow more than the prescribed federal loan calculation. For more information click here for Federal Family Education Loan Program Requirements
