There are two different types of Stafford Loans, subsidized and unsubsidized.
- Subsidized loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" the interest during these times.
- Unsubsidized loans are not awarded based on financial needs. Any eligible student can take out unsubsidized stafford loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.
How much can I borrow?
Dependent Undergraduate Student Independent Undergraduate Student* 1st Year $2,625 $6,625 - No more than $2,625 can be in subsidized loans. 2nd Year $3,500 $7,500 - No more than $3,500 can be in subsidized loans. 3rd and 4th Years (and 5th year, where applicable) $5,500 $10,500 - No more than $5,500 can in subsidized loans. Maximum Total Debt from Stafford Loans: $23,000 $46,000 - No more than $23,000 can be in subsidized loans. As of July 1, 2007, 1st year students may borrow up to $3,500 and 2nd year students may borrow up to $4,500.
The amount you can borrow is based on your year in school and your status as a student. Independent students may borrow more because they are paying for college by themselves. Students may not always qualify for the maximum amount - check with your financial aid office.
