Subsidized  Federal Stafford Loan
(Need-based)

Borrowers must demonstrate need to be eligible for a subsidized Federal Stafford Loan.

Maximum Loan: $8,500 per academic year; $65,500 cumulative undergraduate/graduate borrowings.

Loan Fees: 3% of the approved loan amount will be deducted from the loan proceeds at the time of disbursement.

Interest: No interest is charged on the subsidized portion of the Federal Stafford Loan during the in-school, grace and approved deferment periods.

Interest Rate:  6.8% Fixed Rate for all subsidized loans disbursed after July 1, 2006. 

For unconsolidated subsidized loans disbursed prior to July 1, 2006, the rate is variable tied to the 91-day Treasury Bill plus 1.7% during in school, grace and deferment periods; and Treasury Bill plus 2.3% during repayment. Interest is capped at 8.25%. The variable rate is adjusted annually and will change July 1 of each year throughout the life of the loan.

Grace Period : Borrowers will automatically receive six months of grace immediately following graduation or withdrawal from school. No payments are expected during the grace period.

Deferment Options: Once repayment begins, borrowers are entitled to a deferment if they meet any one of the requirements below. The borrower must request a deferment on a form provided by the lender and provide documentation to the lender in support of the deferment request. For more detailed information regarding deferment requirements, see the booklet provided at the Loan Entrance Interview you attend/attended during First-Year Orientation or see your financial aid counselor.

  • Periods of unemployment (cumulative 24-month limit)
  • Full- or half-time study at an eligible school (no limit)
  • Residency training (only those borrowers who received a Stafford loan prior to 7/1/93; 2-year maximum deferment)
  • Graduate Fellowship (lender must approve eligible program - no limit)
  • Rehabilitation training (no limit)
  • Economic Hardship (only those borrowers who received their first Stafford Loan after July 1, 1993; borrower must meet the federal definition of hardship; 36-month limit)
  • Unable to find full-time employment (36-month limit)

Residency Forbearance: After having exhausted eligible deferment, borrowers may request residency forbearance for any years of residency training remaining. No payment of principal or interest is required during the forbearance period. However, unlike periods of deferment on subsidized Federal Direct Loans, interest is charged during forbearance and, unless paid by the borrower, will be capitalized at repayment.

Repayment: Standard repayment allows 10 years excluding periods of grace, deferment and/or forbearance.