Federal Stafford Loan
What is a Federal Stafford Loan?
A federal loan awarded to all students who apply for financial aid and who are U.S. Citizens or permanent residents. The student must be enrolled at least half-time in a degree seeking program to be eligible for the Federal Stafford Loan.
Subsidized vs. Unsubsidized Federal Stafford Loans
If you are offered a subsidized loan, it means that the federal government pays the interest that accrues on your loan while you are enrolled at least half time and during a six month grace period after you graduate, withdraw or cease to be enrolled at least half-time. After the six-month grace period, you must begin to repay your loan and you are responsible for the interest. Eligibility for the Subsidized Stafford Loan is determined based on financial need.
If you are offered an unsubsidized loan, it means that you are responsible for the interest from the time the loan is disbursed. While you are enrolled at least half-time you may defer interest payments and capitalize the interest. Capitalization means that the interest is added to the loan balance, increasing the loan's size and cost. To reduce the total cost of your loan, consider making in-school interest only payments.
How much am I eligible to receive in Federal Stafford Loans?
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below on an annual basis. Please note Subsidized Stafford Loans are limited by your financial need and Unsubsidized Stafford Loans are limited by your cost of attendance less other aid received.
Annual Undergraduate Federal Loan Limits
|
Base Amount |
Additional Unsubsidized Amount |
| All Students |
Dependent Undergraduates (except students whose parents are denied PLUS loans) |
Independent Students and Dependent Students whose parents are denied PLUS loans |
1st Year Undergraduate
(0-29 Units) |
$3,500 |
$2,000 |
$6,000 |
2nd Year Undergraduate
(30-59 Units) |
$4,500 |
$2,000 |
$6,000 |
3rd Year+ Undergraduate
(60+ Units) |
$5,500 |
$2,000 |
$7,000 |
Aggregate Federal Loan Limits
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below for their entire academic careers.
| Dependency and Program of Study |
Subsidized Stafford |
Maximum Subsidized and
Unsubsidized Stafford |
| Dependent Undergraduates |
$23,000 |
$31,000 |
| Independent Undergraduates |
$23,000 |
$57,500 |
| Graduate/Professional Students |
$65,500 |
$138,500 |
| Certain Health Professional Students (MD, DDS, MHA, MPH) |
$65, 500 |
$224,000 |
What is the interest rate?
The interest rate on the Federal Stafford Loan is a fixed rate.
- Undergraduate Subsidized Federal Stafford Loans
5.6 percent for loans first disbursed July 1, 2009 to July 1, 2010
4.5 percent for loans first disbursed July 1, 2010 to July 1, 2011
3.4 percent for loans first disbursed July 1, 2011 to July 1, 2012
- Undergraduate Unsubsidized Federal Stafford Loans
6. 8 percent for all loans first disbursed after July 1, 2006
How will the loan funds be sent to the LMU?
Provided that you have completed the online Loan Entrance Counseling session and the Master Promissory Note (MPN), the loan will be sent in two disbursements; First disbursement in the fall semester and the second disbursement in the spring. These funds arrive via Electronic Fund Transfer (EFT) and are applied directly to your LMU student account.
When do I pay the loan back?
Repayment on this loan will begin after your grace period, 6 months after you graduate or cease to be enrolled at least half-time. You have 10 years to pay the loan back. Various repayment options are available and the loan period can be extended, if needed via consolidation. There is no prepayment penalty, so you can pay the loan earlier if you wish.
How to Apply for the Federal Stafford Loan