DID YOU KNOW … The value of a postsecondary education as a credential for future employment and earnings is expected to rise. About 90 percent of the fastest growing jobs in the new knowledge-driven market economy require some postsecondary education.
For the first six months after you leave school (referred to as a “grace period”).
During a period of deferment (a postponement of loan payments).
The amount of your subsidized loan cannot exceed your financial need.
Unsubsidized Stafford Loan:
Does not require students to demonstrate financial need.
The U.S. Department of Education does not pay interest on unsubsidized loans.
To determine the amount of your unsubsidized loan, your school will use this equation:
Cost of Attendance
– Federal Pell Grant (if eligible)
– Subsidized Stafford Loan amount (if eligible)
– Any other financial aid you receive
________________________________________
= Amount of unsubsidized loan you can receive
(up to the annual maximum loan amount).
Depending on your financial need, you may receive both subsidized and unsubsidized loans for the same enrollment period, but the total amount of these loans may not exceed the annual loan limit.
Maximum Annual Loan Limits Chart—Subsidized and Unsubsidized Direct and FFEL Stafford Loans
Year
Dependent Undergraduate Student
Independent Undergraduate Student
Graduate and Professional Degree Student
1st Year
$3,500
$7,500—No more than $3,500 of this amount may be in subsidized loans.
$20,500—No more than $8,500 of this amount may be in subsidized loans.
2nd Year
$4,500
$8,500—No more than $4,500 of this amount may be in subsidized loans.
Third and beyond (each year)
$5,500
$10,500—No more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate
$23,000
$46,000—No more than $23,000 of this amount may be in subsidized loans.
$138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.
NOTE: The amounts shown in the chart above are the maximum amounts that you may borrow for an Academic Year. You might receive less than the maximum if you receive other financial aid that’s used to cover a portion of your cost of attendance. The maximum amount you may borrow will also be less in certain situations, such as if you are an undergraduate student enrolled in a program of study that is shorter than an Academic Year. Your school can refuse to certify your loan or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its action and explains the reason to you in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education.
In general, your school will disburse your loan in at least two installments—there might be certain exceptions.
No installment will be greater than half the amount of your loan.
If you’re a first-year undergraduate student and a first-time borrower, your first disbursement can’t be made until 30 days after the first day of your enrollment period.
If you’re a first-time borrower you must complete entrance counseling before you receive your first loan disbursement.
Student loan money must first be used to pay for your tuition, fees and room and board. If loan funds remain, you’ll receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.
DID YOU KNOW … Our team is responsible for much more than processing aid applications and issuing loans. Though these are significant responsibilities in their own right, we also work closely with 3,000 or more private lenders that participate in our programs and more than 6,000 colleges and vocational schools that administer our funds. Part of this function is oversight: we’re charged with making sure that they treat borrowers fairly and ethically.
Can I cancel my student loan if I change my mind, even if I have signed the Promissory Note agreeing to the terms of the loan? Yes. Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying your school. After your loan is disbursed, you may cancel all or part of the loan within certain timeframes. Your Promissory Note and additional information you receive from your school will explain the procedures and timeframes for canceling your loan.
DID YOU KNOW … Financial aid provided by the office of Federal Student Aid is the largest source of postsecondary financial aid in the nation, making up about 70 percent (in dollar value) of all aid granted nationwide.
U.S. Department of Education | Federal Student Aid
