Unsubsidized Stafford Loans

The Unsubsidized Federal Stafford Loan for undergraduate and graduate students is a long-term, low-interest loan designed to provide for students who do not qualify for other financial aid or additional college funds, and who may need more money. This type of Stafford loan is for almost all-household incomes, including middle and upper income families.

Unsubsidized means the student is responsible for the interest on the loan while in school, however, payment can be postponed.

The Unsubsidized Federal Stafford Loan can be requested in conjunction with a Subsidized Federal Stafford Loan as long as the maximum annual or aggregate loan limits for Federal Stafford Loans have not been exceeded.

For more information on Unsubsidized Federal Stafford Loans for undergraduate and graduate students, click on the appropriate section below

Eligibility
Annual Aggregate Loan Limits
Minimum Loan Amount
Maximum Lifetime Amount Per Student
Interest Rate
Repayment Terms
Postponement of Repayment

Eligibility

To be eligible for an Unsubsidized Federal Stafford Loan for undergraduate and graduate students:

• You must be a full or half-time undergraduate or graduate student.
• A need analysis is required.
• An application and promissory note are required.
• You must be an U.S. citizen or have a Permanent Resident Alien Card.
• Graduate students must first apply for a Subsidized Ffederal Stafford Loan before applying for an Unsubsidized Federal Stafford Loan.

Annual Aggregate Loan Limits

The amount an undergraduates Subsidized and Unsubsidized Federal Stafford Loans combined cannot exceed:

These amounts are based on a full-year program and include Subsidized and Unsubsidized Stafford Loans. Expect lower amounts if the program is less than a full year.

Minimum Loan Amount

Citibank, MsMoney.com's student loan partner, has no minimum loan amount.

Maximum Lifetime Amount Per Student

The maximum lifetime amount a dependent undergraduate student can borrow is $23,000. But for independent undergraduate students, the maximum lifetime amount is $46,000.

The maximum lifetime amount a graduate student can borrow (combined with any undergraduate loan limits) is $138,000. This includes Subsidized and Unsubsidized Stafford Loans.

Interest rates are low. Undergraduate and graduate borrowers (regardless of any prior outstanding loan) will have an annual variable rate capped at 8.25%.

New loans approved on or after February 18, 1998 will have an interest rate based on the 91-Day T-Bill plus 1.7% while the student is in school and during the grace period or deferment. The rate is based on the 91-Day T-Bill plus 2.3% during repayment.

Repayment Terms

You will have up to 10 years to repay your Unsubsidized Federal Stafford Loan, plus any periods of deferment or forbearance.

Postponement of Repayment

Principal payments are not due while you are in school or in your initial six month grace period. However, interest is due while you in school or in grace, but these payments can be postponed. If the interest is postponed, it will be capitalized.

Site Map | About MsMoney.com | About Tiffany Bass Bukow | Contact Us | Privacy | Terms of Use