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Federal Stafford Loans
The Federal Stafford Loan program
is a low interest loan program with a fixed interest
rate. Fees
for this loan can be up to 3% of the principal amount borrowed for
the 2008-2009 year. A Stafford Loan’s principal is deferred while
the student is in school, and during the grace period and authorized
deferment periods. Repayment begins six months after the student
graduates, leaves
college, or drops below half-time status (as determined by the school).
Repayment is up to 10 years with a minimum monthly payment of $50.
There are two types of Federal Stafford Loans:
- Subsidized Stafford Loan is based on financial need. The federal government pays the interest on this loan while the student is attending college, during the six-month grace period, and during authorized periods of deferment.
- Unsubsidized Stafford Loan is not based on financial need. The student is responsible for the interest on this loan. The interest can be paid as it accrues or it can be capitalized (be added to the loan principal).
Click here for more information about CSLF's
Susie Mae Stafford Loan Program.
Loan Limits per Year (effective July 1, 2007)
| |
Base Amount |
Additional Amount of Unsubsidized Loan for Independent
Students* |
| First Year |
$3,500 | $4,000 |
| Sophmore |
$4,500 | $4,000 |
| Junior | $5,500 | $5,000 |
| Senior | $5,500 | $5,000 |
| Graduate | $8,500 |
$12,000 |
*Dependent undergraduate students whose parents are not eligible for the
PLUS Loan may qualify for
additional unsubsidized loan amounts.
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