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Federal Stafford Loans*
What is a Stafford loan?
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Stafford loans are low-cost, federally guaranteed student loans available to both undergraduate and graduate students. Subsidized Stafford loans are need-based, while unsubsidized Stafford loans are awarded without regard to financial need. It’s possible to receive both a subsidized and an unsubsidized Stafford loan for the same enrollment period.
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Rates
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Lock in your Stafford student loan at a low 6.8% fixed interest rate and never have to worry about rates or your monthly payment going up.
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Benefits
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- No fee to apply
- No collateral or credit checks
- No co-signer required
- No payments due while in school at least half time
- Eligible for federal student loan consolidation
- Flexible repayment options
- No prepayment penalties
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Loan Amounts
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Undergraduate Students
The amount of money undergraduate students can take out in Stafford student loans each year depends on their year in school and on whether they’re classified as a dependent or independent undergraduate.
A dependent undergraduate student is:
- Under 24
- Single, with no dependents
- Not a ward of the court, a military veteran, or in the military
An independent undergraduate student is any undergraduate not meeting all the criteria for a dependent undergraduate.
Academic Level |
Dependent |
Independent |
First Year |
$3,500 |
$7,500
(up to $3,500 subsidized) |
Second Year |
$4,500 |
$8,500
(up to $4,500 subsidized) |
Third Year and After |
$5,500 |
$10,500
(up to $5,500 subsidized) |
Graduate and Professional Degree Students
Graduate students can borrow up to $20,500 each year in Stafford loans, with a maximum of $8,500 in subsidized Stafford loans.
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Eligibility
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To qualify for a Stafford loan, students must meet certain eligibility requirements:
- Must have completed the FAFSA (Free Application for Federal Student Aid)
- Enrolled at least half-time in a qualified program
- U.S. citizen or permanent resident
- Not in default on any federal education loans
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Repayment Terms
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Repayment generally begins six months after a student borrower has graduated, left school, or dropped below half-time enrollment.
The standard repayment term for a Stafford loan is 10 years. You can also choose from income-sensitive, graduated and extended repayment plans that could help make repayment more affordable.
All Stafford loans are eligible for deferment and forbearance benefits and for federal student loan consolidation.
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Apply for a NextStudent Stafford Loan
* Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications.
On October 1, 2007, legislation went into effect that cut $21 billion in subsidies to FFELP lenders like NextStudent. We have been searching, and continue to search, for avenues that would allow us to keep offering FFELP loans. But at this point, until market and regulatory conditions change, we find ourselves forced to suspend our federal education loan programs.
We value your business, and we want to make sure you’re able to get the money you need to pay for school. We encourage you to take advantage of college scholarships and your available federal financing options. But if you’re still in need of a parent or student loan, please give us a call, and we’ll do what we can to help.
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