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.

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.
  • 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,’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.