The Women's College

Types of Aid:
Grants and Scholarships | Financing Options

Federal Stafford Loans

Subsidized and unsubsidized Stafford loans are available to students enrolled at least half-time in a degree-seeking program. Commercial lenders who participate in the Federal Family Education Loan Program (FFELP) make these low-interest loans. Students with demonstrated need are eligible for a combination of subsidized and unsubsidized loans, and the government will pay the interest on the subsidized portion while the student is in school and during a six-month grace period. Fully unsubsidized loans are awarded to those without remaining need, and the interest accrues on the loan during school, the grace period, and through repayment.

The interest rate on the Stafford loans may vary; it is based on the 91-day Treasury bill and will not exceed 8.25%. For the 2009-2010 aid year, the interest rate is a fixed 5.6% for subsidized loans and a fixed 6.8% for unsubsidized loans. A 0.5% origination fee and/or a 1% gurantee fee may be taken out of each loan before the funds are disbursed to the school. Repayment begins 6 months after the student is no longer enrolled at least half-time. The standard repayment period is 10 years but can be as long as 30 years. Information regarding disbursement and repayment will be mailed to the address the student provides on the Master Promissory Note.

Freshmen are eligible for loan amounts up to $5,500, sophomores for $6,500, and juniors and seniors for $7,500 per academic year. Independent students (as determined by the FAFSA) may be eligible for up to $9,500 as freshmen, $10,500 for sophomores, and $12,500 for juniors and seniors per academic year in a combination of subsidized and unsubsidized loans. Students in an eligible teacher certification program are eligible for $12,500 in a combination of subsidized and unsubsidized loans.

The maximum Federal Stafford Loan debt for undergraduate students is $46,000 in a combination of subsidized and unsubsidized loans (where the subsidized portion may not make up more than $23,000.)  Please keep this maximum loan amount in mind when dropping classes or stopping out.  Unnecessary loan borrowing may leave you with little or no eligibility near the end of your program.

All funds are divided evenly across anticipated terms of enrollment, excluding Summer. Stafford loans for Summer term will only be awarded if the student did not use all of his or her eligibility during the regular academic year.

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