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Welcome to Financial Aid
Stafford Student Loans for 2008-2009
Subsidized Federal Stafford Loan Program
The subsidized loan program provides fixed interest, long-term federal loans through lending institutions in cooperation with a guarantee agency and Financial Aid. Maximum limits are based on financial need, but cannot exceed $3,500 for freshmen and students in certificate programs and $4,500 for sophomores for an academic year. Loans are interest-free until repayment begins, which is six months after a student ceases to be enrolled at least half time. The interest rate for 2008-2009 loans are fixed at 6.0 percent. Monthly payment amount and length of repayment depend on the cumulative amount of loans, with a 10-year repayment time limit.
Unsubsidized Federal Stafford Loan Program
The unsubsidized loan program provides fixed interest, long-term federal loans through lending institutions in cooperation with a guarantee agency and Financial Aid. The unsubsidized loan is available to students who do not qualify for need-based Subsidized Federal Stafford loans or who are not eligible for the full Subsidized Federal Stafford loan amount, but cannot exceed $5,500 for freshmen and students in certificate programs and $6,500 for sophomores for an academic year. Independent students, as defined by the Department of Education, are eligible to borrow up to an additional $6,000 unsubsidized loan. Student borrowers will be responsible for payment of the interest that accrues on these loans while they are in school and during periods of deferment. The interest rate for 2008-2009 loans is fixed at 6.8 percent. Loan repayment begins six months after a student ceases to be enrolled at least half time. Monthly payment amount and length of repayment depend on the cumulative amount of loans, with a 10-year repayment time limit.
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