The Federal Stafford Loan is one of the Federal Family Education Loan (FFEL) programs available through St. Petersburg College, with assistance of a lending institution and a guarantee agency on behalf of the federal government.
There are two types of Federal Stafford Loans:
The Subsidized Federal Stafford Loan is based on financial need. Students are not responsible for payments on principle or interest while they are in school at least half-time. Payments begin six (6) months after the student graduates or drops below half-time.
The Unsubsidized Federal Stafford Loan is not based on financial need. Students are responsible for the interest which accrues on the loan while they are in school. If the student chooses not to pay the interest while in school it will be capitalized to the principle balance of the loan. Payments on principle begin six (6) months after the student graduates or drops below half-time.
Some additional things to know about a Stafford Loan are:
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Federal regulations set policies and guidelines; including loan limits and interest rates. Currently the interest rate is fixed at 6.8%.
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Effective for loans disbursed after July 1, 2008 the unsubsidized interest rate will remain 6.8% fixed while the subsidized interest rate will be reduced to 6.0% fixed
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SPC is not a direct lending institution; private lenders provide all Stafford loan funds to students at SPC.
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SPC will determine eligibility and certify the qualifying amount of the loan and the loan period.
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Guarantee agencies ensure the repayment of the loan in the event of a borrower's default, disability, or death.
Some of the benefits of your Federal Stafford Loan:
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Deferred principle balance repayment for as long as you are a degree-seeking student enrolled half-time.
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Ability to complete the Master Promissory Note online.
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Electronic disbursement of funds to student account.
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Varying repayment incentives, dependent on lender.
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Flexible repayment options.
To be eligible to receive a Federal Stafford Loan you must:
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Complete the verification process, if selected.
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Be enrolled at least half-time (6 credit hours) in an eligible program of study (degree-seeking).
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Not be in default on a federal student loan.
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Be maintaining Satisfactory Academic Progress.
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Be a US citizen or eligible non-citizen.
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Be enrolled in at least one college level class.
For more information, please visit:
http://studentaid.ed.gov/students/publications/student_guide/index.html
2008-2009 Academic Year Loan Limits
|
Base Loan |
Additional Loan* |
Total Loan |
|
Sub/Unsub |
Unsub |
|
Freshman |
$3,500 |
$2,000* / $6,000** |
$5,500* / $9,500** |
Sophomore |
$4,500 |
$2,000* / $6,000** |
$6,500* / $10,500** |
Junior |
$5,500 |
$2,000* / $7,000** |
$7,500* / $12,500** |
Senior |
$5,500 |
$2,000* / $7,000* |
$7,500* / $12,500** |
* For dependent students whose parents have either been approved for a PLUS loan or have not applied for a PLUS loan.
**For independent, or dependent students whose parent has been denied a PLUS loan.
As the chart shows above if you are a dependent student, you cannot borrow more than the base amount unless your parent was denied a Federal PLUS, in which case you may borrow an additional unsubsidized loan up to the total allowed for your grade level. If you are an independent student, you can borrow an additional unsubsidized loan up to the total allowed for your grade level.
For each academic year, fall, spring, and summer you may borrow up to the limits listed above. Once you have reached that maximum loan limit you do not have loan eligibility until the next academic year. If you wish to have loan eligibility for the summer term make sure you do not borrow the maximum in the fall and spring terms.
Aggregate Loan Limits
Federal regulations set aggregate, or total loan limits in addition to the annual loan limits You cannot borrow more than the aggregate loan limit for all subsidized and unsubsidized loans at all schools for all undergraduate programs.
Dependent Undergraduates: $31,000 (no more then $23,000 can be subsidized)
Independent Undergraduates or Dependent Undergraduates with PLUS Denials: $57,500 (no more then $23,000 can be subsidized)
It is the STUDENT'S Responsibility to monitor how much you borrow. You may do so by regularly checking the National Student Loan Data System www.nslds.ed.gov to ensure that you don't reach your aggregate limit before you complete your program.
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