Federal Stafford loan
Federal Stafford loans are fixed-rate, low interest loans available to students attending accredited schools at least half time. Stafford loans are the most common source of college loan funds.
Savings
After seeking out grants and scholarships that don’t have to be paid back, consider a Federal Stafford Loan as a low-cost option to help pay for college.
Eligibility
- You must have submitted a FAFSA to be eligible for a Stafford loan.
- For subsidized Stafford loans, you must have financial need as determined by your school.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- You must be enrolled or plan to enroll at least half time.
- You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
- You must not be in default on any education loan or owe a refund on an education grant.
Features
- Flexible repayment options are available for Stafford loans.
- No payments are required while you are in school at least half time.
- You can manage your account online 24/7 at www.ManageYourLoans.com.
- You get life-of-loan servicing from Sallie Mae.
- There is no prepayment penalty.
- No credit check is required for a Stafford loan.
- Six-month grace period when no payments are required immediately following your graduation or dropping to less-than-half-time status.
And, when you join Upromise for free, you can use your Upromise rewards to help pay down balances automatically on your eligible Sallie Mae-serviced student loans by linking your Sallie Mae® account to your Upromise account with Upromise Loan LinkSM!* To learn more, or to join Upromise now, go to www.salliemae.com/upromise.
Loan terms
Loan limit
| Freshman | $5,500
($3,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized) |
| Sophomore | $6,500
($4,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized) |
| Junior or senior | $7,500
($5,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized) |
| Freshman | $9,500
($3,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized) |
| Sophomore | $10,500
($4,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized) |
| Junior or senior | $12,500
($5,500 between subsidized and unsubsidized, plus an additional $7,000 unsubsidized) |
| Graduate or professional | $20,500
($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized) |
| Undergraduate dependent lifetime limit | $31,000
(up to $23,000 may be subsidized) |
| Undergraduate independent lifetime limit | $57,500
(between subsidized and unsubsidized) |
| Graduate or professional lifetime limit | $138,500
(up to $65,000 may be subsidized) or $224,000 (for health professions) |
For loans first disbursed on or after July 1, 2008.
Interest rate
For loans disbursed July 1, 2008–June 30, 2009, the interest rate for unsubsidized Stafford loans is fixed at 6.8% and for subsidized Stafford loans at 6.0%.
Fees
For loans first disbursed July 1, 2008–June 30, 2009: Up to 2% in fees that includes a 1% federal origination fee and a 1% federal default fee. See our Terms and conditions.
Repayment
- Standard repayment: You make both principal and interest payments each month for up to a 10-year repayment term. This plan has the lowest total interest cost.
- Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment.
- Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
- Extended repayment: If you have high student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment.
Legal
You are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are in school, but you do not have to pay the interest during this time. Unpaid interest that is deferred until after graduation is capitalized at repayment (added to the loan principal) and you will therefore pay interest on a higher loan amount. Interest does not accrue on subsidized Stafford loans while you are in school, during grace, and during authorized deferment.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE LOAN PROGRAMS AT ANY TIME WITHOUT NOTICE. APPLICANTS SHOULD CHECK THE SALLIE MAE WEBSITE CLOSE TO THEIR LOAN DISBURSEMENT DATE TO OBTAIN THE MOST UP-TO-DATE INFORMATION REGARDING LOAN PROGRAMS, INCLUDING BORROWER BENEFITS.
*Access to Upromise is not limited to Sallie Mae customers. Terms and conditions apply.