Subsidized Stafford Loans
A Subsidized Federal Stafford Loan is a long-term, low-interest
loan designed to provide students with additional funds for
college.
Subsidized means the interest on the loan is paid
by the government while the student is in school, and during
periods of grace and deferment.
For more information on Subsidized 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 Term
Postponement of Repayment
Eligibility for Undergraduates
and Graduates:
To be eligible for a Subsidized Federal Stafford Loan:
- 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 a U.S. Citizen or have a Permanent Resident
Alien Card.
Annual Aggregate Loan Limits
As an undergraduate student, you can borrow up to:
- $2,625 in year 1
- $3,500 in year 2
- $5,500 in years 3, 4, and 5
As a graduate student, you can borrow a maximum of $8,500
per year.
These amounts are based on a full academic year program and
includes both Subsidized and Unsubsidized Stafford Loans.
A full academic year is defined as the school year where traditional
credit hours taken are equal to a full academic load. Expect
lower amounts if the program is less than a full year. A Stafford
loan cannot exceed the cost of the education.
Minimum Loan Amount for Undergraduates
and Graduates:
Citibank, MsMoney.com's student loan partner, has no minimum
loan amount.
Maximum Lifetime Amount Per Student:
The maximum lifetime amount you can borrow as a dependent
undergraduate student is $23,000. This includes Subsidized
and Unsubsidized Stafford Loans. For independent undergraduates,
the maximum lifetime amont is $46,000.
The maximum lifetime amount you can borrow as a graduate
student (combined with any undergraduate loan limits) is $138,500.
This includes both Subsidized and Unsubsidized Stafford Loans.
New Interest Rate for Undergraduates
and Graduates:-
Interest rates are now even lower. Undergraduate and graduate
borrowers (regardless of any prior outstanding loan) will
have an annual variable rate capped at 8.25%.
New Stafford loans, loans disbursed on or after 10/1/98,
have an interest rate based on the 91-Day T-Bill
plus 1.7%, while the student is in school, during the grace
period or deferment. The rate is based on the 91-Day T-Bill
plus 2.3% during repayment.
Repayment Term for Undergraduates
and Graduates:
You have up to 10 years to repay your Subsidized Federal
Stafford Loan, plus any periods of deferment or forbearance.
Postponement of Repayment for Undergraduates
and Graduates:
No payments are due while you are in school, in your grace
period or during deferments.
Find out more about Special
Offers such as discounted loan fees available only from
Citibank.
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