Stafford Loan Info for the 2011-2012 Academic Year/ September 22nd, 2011
Before applying for any additional private student loans, college students should first file their FAFSA to confirm eligibility for the Federal Stafford loan. The Federal Stafford loan program is used to offer students low-cost, guaranteed financial assistance for college. Even though they are still loans that must be paid back with any accumulated interest, they offer favorable terms and do not require a co-signer to get approved. There are two kinds of Stafford loans available:
- The subsidized Stafford loan: The government pays the interest on this loan on behalf of the student while the student maintains half-time registration or greater in a degree-seeking school program. The loan is awarded to the student after reviewing the student's FAFSA information and cost of attendance as established by the school's financial aid office. Financial need determines eligibility.
- The unsubsidized Stafford loan: This loan will accrue interest normally after the funding disburses to the student account. Unlike the subsidized Stafford loan, this interest will accumulate and will be included as part of loan repayment after the student completes or leaves school. This loan offers a guaranteed fixed interest rate with approval without a co-signer required.
- The subsidized Stafford loan rate is at 3.4%.
- The unsubsidized Stafford loan rate is 6.8%.
- First-year freshman: $5,500 ($3,500 subsidized/$2,000 unsubsidized)
- Second-year sophomore: $6,500 ($4,500 subsidized/$2,000 unsubsidized)
- Juniors, seniors, and super seniors: $7,500 ($5,500 subsidized/$2,000 unsubsidized)
- First-year freshman: $9,500 ($3,500 subsidized/$6,000 unsubsidized)
- Second-year sophomore: $10,500 ($4,500 subsidized/$6,000 unsubsidized)
- Juniors, seniors, and super seniors: $12,500 ($5,500 subsidized/$7,000 unsubsidized)
- Graduate or professional: $20,500 ($8,500 subsidized/$12,000 unsubsidized)
- School cost of attendance or COA = $31,500
- Expected Family Contribution or EFC = $3,500
- Total financial aid awarded = $22,000
- School COA = $20,500
- EFC = $8,500
- Financial aid awarded = $10,000
- COA = $26,000
- EFC = $21,000
- Financial aid awarded = $7,000