Stafford Student LoansStafford Student Loans

What you need to knowWhat you need to know

Subsidized Stafford LoanSubsidized Stafford Loan

Subsidized by the federal Subsidized by the federal government. government. Our tax dollars at work for you Our tax dollars at work for you No payments while enrolled in No payments while enrolled in

school or on defermentschool or on deferment No interest accrued while enrolled No interest accrued while enrolled

or on defermentor on deferment Acceptance not based on credit Acceptance not based on credit

historyhistory

EligibilityEligibility

US citizen or eligible non-citizenUS citizen or eligible non-citizen Enrolled half-time or more in a Enrolled half-time or more in a

accredited programaccredited program Complete FAFSAComplete FAFSA High School diploma or High School diploma or

equivalentequivalent Not in default or delinquent on Not in default or delinquent on

any existing federal loanany existing federal loan

Unsubsidized Stafford LoanUnsubsidized Stafford Loan

Not based on financial needNot based on financial need Interest accrues from the time of Interest accrues from the time of

disbursementdisbursement You don’t need to make payments You don’t need to make payments

immediatelyimmediately Up to $2000 more can be borrowedUp to $2000 more can be borrowed Can pay interest monthlyCan pay interest monthly

If not paid monthly, interest is If not paid monthly, interest is capitalizedcapitalized

Capitalized = compoundedCapitalized = compoundedSay you borrow $6000 unsubsidizedSay you borrow $6000 unsubsidized

Paying monthly Paying monthly interestinterest Accrued interest = $0Accrued interest = $0 Balance at start of Balance at start of

loan = $6000loan = $6000 Monthly pmt = Monthly pmt =

$69.05$69.05 Total Int = $2285.69Total Int = $2285.69

Not paying monthly Not paying monthly interestinterest Accrued interest = $1632Accrued interest = $1632 Balance at start of loan = Balance at start of loan =

$7632$7632 Monthly pmt = $87.83Monthly pmt = $87.83 Total Int = $ 2907.48Total Int = $ 2907.48

120 monthly payments

Savings = $621.79

Dependent Undergraduates Dependent Undergraduates

Year Subsidized Unsubsidized Total

1st $3500 $2000 $5500

2nd $4500 $2000 $6500

3rd and beyond $5500 $2000 $7500

year Subsidized Unsubsidized

2010-2011 4.5% 6.8%

2011-2012 3.4% 6.8%

2012-2013 6.8% 6.8%

Interest Rates ( apply for all levels)

Independent UndergraduateIndependent Undergraduate

Year Subsidized Unsubsidized Total

1st $3500 $6000 $9500

2nd $4500 $6000 $10500

3rd and beyond $5500 $7000 $12500

Lifetime limitsLifetime limitsLimits Amount

Dependent Undergrad $31,000(up to $23,000 subsidized)

Independent Undergrad $57,500(up to $23,000 subsidized)

Other feesOther fees

.5% federal origination fee .5% federal origination fee 1% federal default fee1% federal default fee

Example – 1Example – 1stst year loan of $5500. year loan of $5500.

Usable amount for you is $5417.50Usable amount for you is $5417.50

Info from www.staffordloan.com www.aessuccess.org