Stafford Loan

Stafford Loans (for students)

Page 2
How much can you borrow?

If you're a dependent undergraduate student, each year you can borrow up to:

1) $2,625 if you're a first year student enrolled in a program of study that is at least a full academic year.
2) $3,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.
3) $5,500 if you've completed two years of study and the remainder of your program is at least a full academic year.

If you're an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan), each year you can borrow up to:

1) $6,625 if you're a first-year student enrolled in a program of study that is at least a full academic year (no more than $2,625 of this amount may be in subsidized loans)
2) $7,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans)
3) $10,500 if you've completed two years of study and the remainder of your program is at least a full academic year (no more than $5,500 of this amount may be in subsidized loans)

These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs or Direct Loans, individually or in combination. Because you can't borrow more than your cost of attendance minus the amount of any Federal Pell Grant you're eligible for and minus any other financial aid you'll get, you may receive less than the annual maximum amounts. You will receive money for both the Direct Loan and FFEL programs, through your school in at least two installments. No installment may exceed one half of your loan amount. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If loan money remains, you'll receive the funds by check or in cash, unless you give the school written authorization to hold the funds until later in the enrollment period.

If you're a first year undergraduate student and a first time borrower, your school cannot disburse your first payment until 30 days after the first day of your enrollment period. This practice ensures you won't have a loan to repay if you don't begin classes or if you withdraw during the first 30 days of classes.

Page 1 What are Stafford Loans?
Page 3 Interest Rates, Fees, and Repayment

For more information about filling out the Free Application for Federal Student Aid (FAFSA) go to: www.fafsa.ed.gov/

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