• Loans
  Federal Stafford Loans:

Loan Limits

There are two types of Federal Stafford Loans; Subsidized and Unsubsidized.

Students who demonstrate financial need may obtain the loan on a subsidized basis.  The borrower does not pay interest on the subsidized loan while they are in school.  Students who do not demonstrate a financial need may obtain the Stafford Loan on an unsubsidized basis.  The borrower does pay the interest on the unsubsidized loan while they are in school and during the repayment period.

The Stafford loan interest rate, effective July 1, 2007, is a fixed rate at 6.8%.  An origination fee of up to 2.5 (includes a 1.5% federal origination fee and a 1% default fee) for undergraduate and graduate students is deducted from the loan proceeds.  There are lenders and guarantors that may pay all or a portion of these fees.

Although the University determines the financial need and the amount of subsidized and/or unsubsidized eligibility, the loan is made by banks, credit unions and other lending institutions.
The loan limits are established by the federal government; the amount of subsidized loan eligibility, however, is contingent on financial need.

The annual loan limits as of July 1, 2007 are as follows:

Dependent Undergraduate Student	Credits	Subsidized
Freshman	0 – 27	$3,500
Sophomore	28 – 59	$4,500
Junior	60 – 87	$5,500
Senior	88 +	$5,500

Independent Undergraduate Student	Credits	Subsidized	Unsubsidized
Freshman	0 – 27	$3,500	$4,000
Sophomore	28 – 59	$4,500	$4,000
Junior	60 – 87	$5,500	$5,000
Senior	88 +	$5,500	$5,000

The aggregate loan limits are the total amount of Stafford loan a student can borrow during their educational program. The aggregate limits are as follows:

Federal Stafford Aggregate Loan Limits

Dependent Undergraduate	$23,000
Independent Undergraduate	$46,000