Stafford Loans

The amount of money you can borrow depends on your year in school and whether you are classified as an independent or dependent student. 2008-09 borrowing limits are listed below:

Note: These limits are based on a full academic year and your qualifications as a full or part-time student. Rates are effective as of July 1, 2008.
* Higher Stafford loan limits are available to students in some graduate medical programs.

After you graduate, leave school, or drop below half-time, there is a six-month grace period before you have to make a payment on your Stafford Loan(s). During this time, you will receive information about repayment and your first payment due date. You are responsible for repaying your loan(s) on time, even if you don't receive this information. Payments are usually due monthly.

During the grace period on a subsidized loan, you don’t have to make any payments, and you won’t be charged interest. During the grace period on an unsubsidized loan, you don’t have to make any payments, but you will be charged interest. You can choose to pay the interest during the grace period, or, if you defer all payments until after the grace period, the interest on an unsubsidized loan will be capitalized, or added to your principal loan balance, increasing the total amount you owe.

You should fill out the FAFSA as soon as you can after January 1st of each year. Because the FAFSA asks for tax information from the previous calendar year, you may want to wait until your family has all of the necessary paperwork or has filed their income taxes. You can file the FAFSA before filing your income taxes using estimates, but you will need to go back later and correct any discrepancies.

The only deadline for filling out the FAFSA is June 30th at the end of the school year for which you are filing. In other words, for the 2009-2010 school year, the FAFSA will be available on January 1, 2009. You can file the FAFSA anytime between then and June 30, 2010. However, many states and schools allocate funds on a first-come, first-served basis, and some states have deadlines for filing the FAFSA to be eligible for certain kinds of aid. Please visit the Department of Education’s Student Aid on the Web for more information.

In order to be eligible for federal financial aid and federal student loans, you must fill out the FAFSA each year. The FAFSA for each school year is available in January preceding the start of the school year.

How long the FAFSA takes to be process depends on how it is submitted – and if it is complete and correct when submitted. If it's done online with an e-signature, it can take 3-5 days to see its status; if it's done on paper via mail, it can take 7-10 days. The status will indicate if you completed the application properly or if more information is necessary (and then it goes to the school). Please visit the Department of Education’s Student Aid on the Web for more information.

Keep in mind that the most common federal student loan – the Stafford Loan – is available regardless of need or income, but you MUST complete the FAFSA to qualify. It is worth the effort to complete the FAFSA.

It is a common misconception that someone can be "ineligible" for financial aid because they make too much money. Everyone qualifies for unsubsidized federal loans, regardless of income.

People who do not qualify for federal aid include those without a high school diploma or GED, who are not U.S. citizens or eligible non-citizens, do not have a SSN, are not registered with the Selective Service (and are male), are not enrolled in an eligible program, or who are in default on a federal loan. Please visit the Department of Education’s Student Aid on the Web for more information.