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Stafford Loan Overview
Graduate Student Stafford Loans
There are two different types of graduate Stafford Loans, subsidized and unsubsidized.
- Subsidized Stafford Loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" the interest during these periods of times.
- Unsubsidized Stafford Loans are not awarded based on financial needs. Any eligible student can take out unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.
Other Graduate Student Loan Options: Consider Private Alternative Loans for Graduate Students or the Federal Graduate PLUS Loan
How much can I borrow?
| Graduate/Professional Student | |
|---|---|
| 1st Year | $20,500 - No more than $8,500 can be in subsidized loans |
| 2nd Year | |
| 3rd and 4th Years (and 5th year, where applicable) | |
| Maximum Total Debt from Stafford Loans: |
$138,500 - No more than $65,500 can be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study. |
The amount you can borrow is based on your year in school and your status as a student. Independent students may borrow more because they are paying for college by themselves. Students may not always qualify for the maximum amount - check with your financial aid office.
Am I eligible for this loan?
You must be enrolled at least half time in an eligible program of study. Students not enrolled at least half time might consider a continuing education loan which allows you to borrow to cover the costs of your continuing education.
How can I get this loan?
You first must complete the FAFSA (Free Application for Federal Student Aid) or Renewal FAFSA. After the FAFSA is processed your school will review the results and inform you about your loan eligibility. Next, you must complete the Master Promissory Note, which is the promissory note for your loan. Your school may require that you complete their form, again - check with your financial aid office. You can also request the MPN from StaffordLoan.com.
What is the interest rate of this loan?
Graduate Stafford loans (both subsidized and unsubsidized) have a fixed rate of 6.8% through 2013.
Are there any special fees I will pay?
You may be charged up to a 1% guarantee fee and a 1.5% origination fee. Recent changes in the Higher Education Reauthorization Act have prompted an annual reduction in the origination fee. By July 2010, there will be no origination fee.
When will I get my money?
In most cases, your loan will be disbursed in two installments and sent directly to the school as determined by your financial aid office. Your loan money will be used to pay your tuition and fees. If loan money remains, your school will credit your student account or pay you directly.
Can I cancel the loan?
Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.
To apply for student loans and financial aid, visit:
- Private Student Loans:
- Graduate Student Loans - GradLoans.com's Graduate Student Loan Services
- Federal College Loan Consolidation
- College Scholarship Search
- Student Credit Cards and Credit Education
- Graduate Student Insurance Plans
To lock your rates, you must consolidate your graduate student loans. To consolidate your loans, please visit the Graduate Loan Consolidation Center.
What are my repayment options?
The normal repayment for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. You may choose one of the following plans:
- The Standard Repayment Plan requires you to pay a fixed amount each month-- at least $50 or the interest that has accrued.
- The Graduated Repayment Plan sets your payments lower at first and then increases them over time. Each of your payments must equal the interest accrued on the loan between scheduled payments.
- The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
- The Extended Repayment Plan is for borrowers with FFELP loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.
