Stafford Student Loan
The Stafford Student Loan is one of the most common loans taken out by students in order to cover education
expenses. There are actually two versions of the Stafford loan; the subsidized and unsubsidized versions. When applying for the Stafford loan, it is important to keep the following criteria in mind in regards to eligibility:
Subsidized Stafford Loan
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Need based
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The government will pay the interest on the loan while you are in school
and during the grace period
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Must be a U.S. citizen or permanent resident
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Must be a full or half-time undergraduate or graduate
student
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Since the loan is need based, no credit check is
required
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Up to 10 years allowed to repay the loan
Unsubsidized Stafford Loan
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Non-need based
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The borrower of the loan is responsible for all interest as soon as the
loan is taken out; including throughout school.
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Must be a U.S. citizen or permanent resident
-
Must be a full or half-time undergraduate or graduate
student
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No credit check is required
The loan limits of both types of Stafford student loans vary;
depending on two major factors; your level (year) in school and whether you are determined to be an independent or depend
student.
With the Subsidized Stafford loan, loan limits are determined by
your year in school. In year 1 you are allowed to borrow up to $2625; Year 2: $3500; Years 3 and 4: $5500 per year. Graduates students may
borrow up to $8500 per year; regardless of their level in school.
The Unsubsidized Stafford loan allow for the following loan
limits:
Year 1:
$2625 for dependent students
$6625 for independent students
Year 2:
$3500 for dependent students
$7500 for independent students
Years 3 and 4: $5,500 for dependent
students
$10,500 for independent students
Graduate student: $18,500 per year
**
**The amount of any subsidized Stafford loan awarded to the student will be subtracted from this amount.
Finally, there are regulations regarding the cumulative loan limits for both types of the Stafford studentloan in regards to undergraduate and graduate students. Dependent undergraduate students may borrow up to
$23,000 between both types of Stafford loans. Independent undergraduate students may borrow up to $46,000; of which $23,000 may be made up with the subsidized
Stafford loan. Graduate students may borrow up to $138,500; of which up to $65,000 may be made up in the
subsidized Stafford loan.
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Read how Direct Stafford Loans are No Cosigner student
loans.
- Stafford student loan repayment website
Answers to Stafford student loan repayment website Our website shall set forth to answer your most important frequent questions about student loan financing, and Stafford loan repayment website.
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