Stafford Loans to Students

Stafford Loans are low interest loans made to students.

The Federal Stafford Loan, as part of the Federal Family Education Loan Program (FFELP), is the most widely used loan in the student education loan program. To view the current interest rates for the program, please click here.

There are two types of Stafford Loans, Subsidized and Unsubsidized. A Subsidized Stafford Loan is available to students who have financial need. An Unsubsidized Stafford Loan is an option for students who do not demonstrate financial need.

Subsidized Stafford Loan

For the student with financial need, the federal government pays the interest on the subsidized loan while the student is enrolled in college at least half-time and for six months after the student is no longer enrolled. At the end of the six-month period, the student becomes responsible for the loan interest and repayment.

Unsubsidized Stafford Loan

While unsubsidized loans are offered to students with no financial need at the same interest rates as those loans in the subsidized program, the student with an unsubsidized loan is responsible for the interest at all times. Students can choose to pay the interest while they are enrolled or have it added to the loan principal. Delaying interest payment by adding to principal, however, will increase the cost of the loan. Repayment of the principal begins six months after the student is no longer enrolled.

Eligibility

You first complete the Free Application for Federal Student Aid (FAFSA) and have your results sent to the financial aid offices of the schools to which you are applying for admission and financial assistance. Each financial aid office then determines if you are eligible for a subsidized or unsubsidized Stafford loan and, if so, includes this recommendation and loan amount in your financial aid award package. Other eligibility requirements follow:

Citizenship - You must be a U.S. citizen or an eligible non-citizen.
Enrollment - You must be enrolled or accepted for enrollment at least half-time at a participating school in an eligible program leading to a degree or certificate; or leading to a professional credential or certification from a state, that is required for employment as an elementary or secondary school teacher in that state; or be enrolled for not longer than a 12-month period in a course of study which has been determined as necessary for enrollment in a degree or certificate program.
Academic - You must be maintaining satisfactory academic progress in your course of study according to your school's standards and statutory requirements.
Non-Default - You must not be in default on an educational loan or owe a refund on an educational grant.
High School - You must have a high school diploma or GED or pass an independently administered test, determined by your school, that demonstrates your ability to benefit from the program of study.
Law - You must meet all of the other Federal Stafford Loan program eligibility requirements prescribed by law at the time your loan application is processed.

Value

Origination and federal default fees are set by federal statute and are deducted from loan proceeds. Loans first disbursed on or after July 1, 2007 are subject to a 1.5% origination fee. Loans guaranteed on or after July 1, 2006, are subject to a 1% federal default fee. These fees are deducted from the total amount of the loan. However, some lenders such as GSFC, waive or pay these fees on your behalf, giving you immediate savings. Be sure to ask whether or not your lender pays these fees for you.

The amount students may borrow depends on their grade level in school, program length, amount of other financial aid received, and — in the case of the subsidized Stafford Loan — the amount of financial need. The annual maximums by grade level are shown below:

$3,500 - first year of undergraduate school
$4,500 - second year of undergraduate school
$5,500 - third year and beyond of undergraduate school
$8,500 - graduate/professional students

Depending on the grade level and the program length, independent students may borrow additional amounts (above these maximums) as unsubsidized Stafford Loans. Total (subsidized plus unsubsidized) lifetime maximums are listed below:

$23,000 - dependent undergraduate students
$46,000 - independent undergraduate students
$138,500 - graduate students (including any undergraduate loans)

Loan Disbursement

Once the loan is guaranteed, the proceeds from your Federal Stafford Loan will be sent to your school. You must contact the Financial Aid Office to make arrangements to receive your loan proceeds. You will receive a Loan Guarantee and Disclosure Statement outlining the anticipated disbursement schedule, as determined by your school, for each loan guaranteed.

Application Procedure

Once you decide which school you wish to attend and accept its offer of financial assistance, the school can certify you as eligible for a Stafford Loan. Most schools provide you with a list of lenders to consider; you may select one of these or another lender of your preference. Once you select a lender, follow the directions from your school to complete the loan process. Please note: some colleges participate only in the Federal Direct Loan Program. In these cases, there is no choice of a lender. These colleges will indicate Direct Loan to you in their financial aid process.

If you want to learn more about what you should consider before selecting a lender, click here.

If you are ready to apply for a Stafford loan with the Georgia Student Finance Commission (GSFC) — good choice. Continue to Stafford Loan Applications.

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Create an Account Log On My 411 Paying for College Repayment Guide Scholarships & Grants Savings Programs Tax Savings Loan Programs Stafford Loans Choosing a Stafford Loan Lender Superior Savings and Service GRADPLUS Loans Parent Loans for Undergraduate Students (PLUS) GAcollege Alternative Loan Federal Consolidation Loans Federal Perkins Loan Service Cancelable Loans Tools & Calculators Publications & Forms Ask an Expert	En Español Stafford Loans to Students Stafford Loans are low interest loans made to students. The Federal Stafford Loan, as part of the Federal Family Education Loan Program (FFELP), is the most widely used loan in the student education loan program. To view the current interest rates for the program, please click here. There are two types of Stafford Loans, Subsidized and Unsubsidized. A Subsidized Stafford Loan is available to students who have financial need. An Unsubsidized Stafford Loan is an option for students who do not demonstrate financial need. Subsidized Stafford Loan For the student with financial need, the federal government pays the interest on the subsidized loan while the student is enrolled in college at least half-time and for six months after the student is no longer enrolled. At the end of the six-month period, the student becomes responsible for the loan interest and repayment. Unsubsidized Stafford Loan While unsubsidized loans are offered to students with no financial need at the same interest rates as those loans in the subsidized program, the student with an unsubsidized loan is responsible for the interest at all times. Students can choose to pay the interest while they are enrolled or have it added to the loan principal. Delaying interest payment by adding to principal, however, will increase the cost of the loan. Repayment of the principal begins six months after the student is no longer enrolled. Eligibility You first complete the Free Application for Federal Student Aid (FAFSA) and have your results sent to the financial aid offices of the schools to which you are applying for admission and financial assistance. Each financial aid office then determines if you are eligible for a subsidized or unsubsidized Stafford loan and, if so, includes this recommendation and loan amount in your financial aid award package. Other eligibility requirements follow: Citizenship - You must be a U.S. citizen or an eligible non-citizen. Enrollment - You must be enrolled or accepted for enrollment at least half-time at a participating school in an eligible program leading to a degree or certificate; or leading to a professional credential or certification from a state, that is required for employment as an elementary or secondary school teacher in that state; or be enrolled for not longer than a 12-month period in a course of study which has been determined as necessary for enrollment in a degree or certificate program. Academic - You must be maintaining satisfactory academic progress in your course of study according to your school's standards and statutory requirements. Non-Default - You must not be in default on an educational loan or owe a refund on an educational grant. High School - You must have a high school diploma or GED or pass an independently administered test, determined by your school, that demonstrates your ability to benefit from the program of study. Law - You must meet all of the other Federal Stafford Loan program eligibility requirements prescribed by law at the time your loan application is processed. Value Origination and federal default fees are set by federal statute and are deducted from loan proceeds. Loans first disbursed on or after July 1, 2007 are subject to a 1.5% origination fee. Loans guaranteed on or after July 1, 2006, are subject to a 1% federal default fee. These fees are deducted from the total amount of the loan. However, some lenders such as GSFC, waive or pay these fees on your behalf, giving you immediate savings. Be sure to ask whether or not your lender pays these fees for you. The amount students may borrow depends on their grade level in school, program length, amount of other financial aid received, and — in the case of the subsidized Stafford Loan — the amount of financial need. The annual maximums by grade level are shown below: $3,500 - first year of undergraduate school $4,500 - second year of undergraduate school $5,500 - third year and beyond of undergraduate school $8,500 - graduate/professional students Depending on the grade level and the program length, independent students may borrow additional amounts (above these maximums) as unsubsidized Stafford Loans. Total (subsidized plus unsubsidized) lifetime maximums are listed below: $23,000 - dependent undergraduate students $46,000 - independent undergraduate students $138,500 - graduate students (including any undergraduate loans) Loan Disbursement Once the loan is guaranteed, the proceeds from your Federal Stafford Loan will be sent to your school. You must contact the Financial Aid Office to make arrangements to receive your loan proceeds. You will receive a Loan Guarantee and Disclosure Statement outlining the anticipated disbursement schedule, as determined by your school, for each loan guaranteed. Application Procedure Once you decide which school you wish to attend and accept its offer of financial assistance, the school can certify you as eligible for a Stafford Loan. Most schools provide you with a list of lenders to consider; you may select one of these or another lender of your preference. Once you select a lender, follow the directions from your school to complete the loan process. Please note: some colleges participate only in the Federal Direct Loan Program. In these cases, there is no choice of a lender. These colleges will indicate Direct Loan to you in their financial aid process. If you want to learn more about what you should consider before selecting a lender, click here. If you are ready to apply for a Stafford loan with the Georgia Student Finance Commission (GSFC) — good choice. Continue to Stafford Loan Applications. Related Links Choosing a Stafford Loan Lender Slope Calculator Loan Repayment Forms Current Interest Rates for Loan Programs
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