Unsubsidized Stafford Loan
- Fixed interest rate - 6.8%
- No payments while in school at least half-time
An Unsubsidized Stafford Loan is a federally guaranteed student loan that is not based on financial need. For unsubsidized student loans, interest accrues from the time the loan is disbursed to the school. This is the key difference between subsidized and unsubsidized student loans.
Unsubsidized Student Loan Quick Facts
- Interest rate of 6.8% for the 2012-2013 year
- Borrow up to $12,000 per year, depending on grade level
- Lifetime limit of $34,500 for undergraduate students
- No payments required while enrolled in school
- 1% origination fee
Note: Congress has not yet finalized interest rates for the 2013-2014 academic year. Check out the Student Loan Network blog for updates on interest rates and other student loan news.
Unsubsidized Loan Limits
| Grade |
Annual Unsub. Loan Limits
Dependent |
Annual Unsub. Loan Limits
Independent |
|---|---|---|
| First Year | $2,000 | $6,000 |
| Second Year | $2,000 | $6,000 |
| Third Year and Beyond | $2,000 | $7,000 |
| Graduate or Professional | N/A | $12,000 |
| Total Lifetime Limit | $8,000 | $73,500 ($34,500 Undergrad.) |
Stafford Limit Increases
In certain circumstances, dependent students may be able to qualify for an increased amount of Stafford Loans. Qualifying circumstances include:
- Dependency Override - If a student has unusual family circumstances (such as incarcerated parents, for example) they may be able to qualify as an independent student and would be subject to the independent student limits.
- PLUS Denial - If a parent applies for a Parent PLUS loan and is denied for adverse credit, the student becomes eligible for independent Stafford loan limits.
Unsubsidized Loan Eligibility
Unsubsidized student loans are not need-based funds. Because of this, they are available to most federal aid recipients, regardless of financial circumstances. To receive these loans, students must be enrolled at least half-time in a degree or qualifying certificate program and meet the basic eligibility criteria for federal student aid.
How to Apply
The application process for unsubsidized stafford loans is the same as for subsidized — students must file the Free Application for Federal Student Aid (FAFSA). Once the application is complete, the school's financial aid office will send an award letter, detailing the amount of aid available.
View our comparison of subsidized and unsubsidized Stafford Loans.
