Most students who file a FAFSA are awarded a Federal Stafford Loan.
A Federal Parent Loan for Undergraduate Student (PLUS) is available
to parents of dependent students.
Federal Stafford Loans are low-interest loans offered to undergraduate
and graduate students attending accredited schools at least half-time.
Eligible expenses include tuition and fees, room and board, books
and supplies, transportation and a living allowance. Federal Stafford
Loans are either subsidized or unsubsidized. A student may receive
a subsidized and an unsubsidized loan during the same enrollment
A student must be a US citizen or permanent resident, an undergraduate
or graduate student enrolled at least half-time, completed a FAFSA,
maintain satisfactory academic progress, and not exceeded annual
or lifetime aggregate loan limits. No credit check is required.
After graduation from college, dropping below half-time, or leaving
school for any other reason, a student receives a 6-month grace
period before starting repayment. There are a variety of repayment
options and a student may be eligible to postpone payments through
deferment or forbearance. Repayment is usually based upon a 10-year
plan. In certain circumstances, a person may be allowed up to 25
years for repayment.
Interest Rate and Origination Fee
The interest rate for Federal Stafford loans is variable, but does
not exceed 8.25%. The rate is adjusted each year on July 1. An origination
fee of up to 3 percent of the loan is charged for Federal Stafford
Loans. The fee is deducted proportionately from each loan disbursement