Stafford Loans for Undergraduate and Graduate Students: Loan Information ::: Nelnet
 

Stafford Loans

 

For Undergraduate and Graduate Students

There are important benefits you get with Stafford Loans. You get fixed-rate, low-interest, deferred payment loans for college. Currently, the federal Stafford Loan program is the largest and most common source of student loans in the country.

Loan Types

  • Subsidized Stafford Loans - With subsidized loans, the federal government subsidizes, or pays, the interest accrued while you're enrolled in school at least half-time and during the first six months after you graduate or drop below half-time enrollment.
  • Unsubsidized Stafford Loans - With unsubsidized loans, no one pays the interest for you while you're in school as with a subsidized loan. But, you'll get that low-interest, long-term, deferred-payment loan.
 

 

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Contact us toll-free:
1.877.804.3603
 
 

Features

  • No principal payments are required while you're in school at least half time
  • When you have a subsidized loan, interest payments are covered by the U.S. government while you are enrolled
  • For unsubsidized loans, you get the option to pay the interest as it accrues while you're in school or postpone paying the interest until you begin repayment, in which case it is capitalized (added to the principal balance).
  • There is a 6-month grace period after graduation or dropping below half-time enrollment before you begin payments
  • Repayment term generally up to 10 years. With an extended payment plan, it's possible for qualifying borrowers to take up to 25 years to repay
  • Other flexible repayment plans are available
  • There's no pre-payment penalty
  • No credit check is required
  • No collateral is required
  • Almost everyone is eligible for a Stafford Loan
 
 
 
 
 

Basic Requirements

  • You must be a U.S. citizen/national, a U.S. permanent resident, or an eligible non-citizen
  • You must be enrolled or plan to enroll at least half time
  • You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program
  • You must not be in default on any education loan or owe a refund on an education grant
  • You must submit the Free Application For Federal Student Aid (FAFSA)
 
 
 
 
 

Interest Rates

For subsidized undergraduate Stafford loans disbursed on or after July 1, 2006, interest rates are as follows:

  • July 1, 2006 through June 30, 2008 - 6.80%
  • July 1, 2008 through June 30, 2009 - 6.00%
  • July 1, 2009 through June 30, 2010 - 5.60%
  • July 1, 2010 through June 30, 2011 - 4.50%
  • July 1, 2011 through June 30, 2012 - 3.40%
  • On or after July 1, 2012 - 6.80%

Interest rates for graduate and unsubsidized undergraduate Stafford loans disbursed on or after July 1, 2006 remain fixed at 6.80%.

 
 
 
 
 

How Much Can You Borrow?

There are limits and they depend on what year you are in college, whether you are an undergraduate or graduate student, and whether you are a dependent student or you are independent from your parent or guardian. These limits are applicable for loans made on or after July 1, 2007.

 Dependent UndergradsIndependent Undergraduates & Students whose Parents cannot get a PLUS LoanGraduate/Professional Students
1st year$3,500$9,500 – With no more than
$3,500 in subsidized loans		$20,500 – No more than $8,500 of this amount may be in subsidized loans
2nd year$4,500$10,500 – With no more than
$4,500 in subsidized loans
3rd and
4th years (each)		$5,500$12,500 – With no more than
$5,500 in subsidized loans
Maximum total debt from Stafford Loans when you graduate$23,000$57,500 – No more than $23,000 in subsidized loans$138,500 – No more than $65,500 in subsidized loans.

The graduate debt limit includes Stafford Loans received for undergraduate study.
Apply Now For a Loanor contact us toll-free at 1.877.804.3603