The Federal Stafford Loan is the most popular low-interest federal loan. Stafford loans are for undergraduate and graduate students. The loan is insured by the federal government and offers flexible repayment options. Schools that participate in the William D. Ford Federal Direct Loan (Direct Loan) Program offer Stafford Loans.
There are two types of Federal Stafford Loans: subsidized and unsubsidized. Depending on household income, a student can be eligible for one or both varieties of student loans. The school specifies for which loans the student is eligible. Due to rates and repayment policy, Stafford Loans are the second thing a student should pursue, after conducting a scholarship search. If you aren't able to completely fund your college education with scholarships, the Stafford is the first loan option you should consider.
Each year, dependent undergraduate students can borrow up to:
Each year, independent undergraduate students or a dependent students whose parents were unable to get a PLUS Loan can borrow up to:
The student is responsible for all interest that accumulates while they are in school, in deferment, and during the grace period. Students can take out both subsidized and unsubsidized loans as long as they do not exceed Stafford yearly borrowing limits.
$20,500 (unsubsidized only) for graduate/professional students who are independent students. There are no dependent loan options for graduates.
$31,000 for dependent students where no more than $23,000 can be subsidized loans for subsidized and unsubsidized aggregate loan limits.
-$57,500 for independent students where no more than $23,000 can be subsidized loans - is the limit for undergraduates when it comes to subsidized and unsubsidized aggregate loan limits. $138,500 for graduate or professional students where no more than $65,500 can be subsidized loans – is the limit for independent students for subsidized and unsubsidized aggregate loan limits.
For more information on Federal Stafford Loans, visit www.studentaid.ed.gov.
Latest College & Financial Aid News
January 21, 2020
The Entertainment Software Association (ESA) announced its first Esports scholarship, expanding its 20-year-old scholarship program to include Esports competitors in college, according to Polygon. The ESA Esports scholarship program is "intended to elevate the participation of women and minorities" who currently "account for a very small percentage of Esports scholarship recipients. Therefore, in order to be eligible for the ESA Foundation Computer and Video Game Arts Scholarship, you must either be a woman or minority and pursuing a degree leading to a career in computer and video game arts and sciences. Current high school seniors, college freshman, sophomore and juniors who are U.S. citizens may apply for the ESA Esports scholarship. Applicants must also be enrolled full-time in an undergraduate program at an accredited four (4) year college or university in the upcoming fall semester in order to be considered. All scholarship applications are due March 2, 2020 at 11:59 PST. Applicants will receive results by mid-June and funds will be issued to scholarship winners by end of August. [...]
January 16, 2020
When it comes to large dollar scholarships, mo' money means fewer problems in paying your college tuition bill. The average student will land between $1,000 and $5,000 in college scholarships after investing a decent amount of time and effort into applying for scholarships. Even smaller scholarships worth $500 are enough to cover books and fees, even if they aren't enough to foot an entire semester’s college tuition bill. [...]
January 13, 2020
Should students be required to and serve their nation either before or during college? Pete Buttigieg thinks so, as he has rolled out a $20-billion proposal to enlist young people in national service after high school in order to produce "civically informed and dedicated Americans." In his commentary, Why Colleges Should Require a Gap Year, Jonathan Zimmeran outlines why a gap-year would be the ideal timeline for this initiative. [...]