Office of Student Aid : Loans : Federal Stafford Loan

The Federal Stafford Loan, with fixed low interest rates for both graduate and undergraduate students, is one of the most affordable loans available. Loans may be subsidized or unsubsidized.

Subsidized

• The federal government pays the interest on the loan while you are in school.
• Awarded on the basis of financial need.

Unsubsidized

• You may pay interest while you are in school or allow it to capitalize.**
• Can be awarded to students without financial need.

**If you receive an unsubsidized Federal Stafford Loan we recommend that--if at all possible--you pay the interest (due quarterly) while you are in school. Review a repayment comparison for an example of the impact of making unsubsidized Stafford Loan interest payments.

If you are awarded a Federal Stafford Loan and you are a first-time borrower, please be aware that the loan will not disburse into your University account until you: (1) e-sign your loan application--the Master Promissory Note (MPN), (2) complete loan entrance counseling, and (3) confirm your registration.

Please note that there are annual limits on the amount you may borrow in Stafford Loans. Also, your lender may charge origination fees of up to 2% to process your loan.