Why did I receive less than what I applied for in Stafford Loan funds?

Federal Stafford Loan

  • Fixed interest rate of 6.8%
  • Zero fees (you save 2%)
  • No credit check is required
Apply for the Stafford loan

Federal PLUS Loan

For parents or guardians of undergraduate students. A low interest rate of 8.25% and a viable alternative if you have been declined for, or choose not to take a private student loan.

Learn more about the Parent PLUS Loan

Lenders retain a percentage of the amount you borrow in guarantee fees and/or origination fees. Guarantee fees are used by the lender in creating a reserve to protect the loan program in instances when borrowers default on their loans. Origination fees are a processing fee retained by lenders. Therefore, what you actually receive will be the awarded amount minus the fees.

In some cases a student may not be eligible for the total maximum in Stafford Loan funds but rather a portion based on their FAFSA determination. For example: The Stafford Loan limit maximum for a freshman student is $3,500 but based on their FAFSA determination, a student may only be eligible to borrow $2,000 for that particular academic year.

Do you have a question that hasn't been answered? Contact us and we'll be glad to help you.

Stafford Loan Frequently Asked Questions