| |
Loan Programs
Federal Stafford Loan Fact Sheet
Eligibility
- Must be undergraduate, graduate, or professional student enrolled at least half time as a degree-seeking student.
- Must be a U.S. citizen, U.S. national, or permanent resident of the United States.
- Cannot be in default on a Federal education loan or owe a repayment of Federal Title IV aid.
- Must have financial need to receive a SUBSIDIZED Stafford Loan; the U.S. Department of Education will pay (subsidize) the interest that accrues on Subsidized
Stafford Loans during certain periods.
- Financial need is not a requirement to obtain an UNSUBSIDIZED Stafford Loan; the borrower is responsible for the interest that accrues on Unsubsidized Stafford
Loans.
Award Amounts
Stafford Loan limits effective July 1, 2009 depend on year in school and dependency status.
|
Year/Classification |
Base Amount |
Additional Unsubsidized Loan Amt. |
Total |
|
Dependent Students* |
|
|
Freshman |
$3,500 |
$2,000 |
$5,500 |
|
Sophomore |
$4,500 |
$2,000 |
$6,500 |
|
Junior or Senior |
$5,500 |
$2,000 |
$7,500 |
|
Independent Students* |
|
|
Freshman |
$3,500 |
$6,000 |
$9,500 |
|
Sophomore |
$4,500 |
$6,000 |
$10,500 |
|
Junior or Senior |
$5,500 |
$7,000 |
$12,500 |
|
Graduate Students |
$8,500 |
$12,000 |
$20,500 |
*Dependent students whose parents are denied a PLUS loan should refer to the independent chart.
Interest Rates and Fees
For Stafford Loans disbursed between July 1, 2010 and June 30, 2011, the interest rate is fixed at
4.5% for undergraduate Subsidized Stafford Loans (only) and fixed at
6.8% for Unsubsidized Stafford Loans and all graduate/professional Stafford Loans. The borrower will be assessed a fee of .5% of the amount borrowed in government fees.
Steps to apply for a Federal Stafford Loan
- File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov (this is a requirement) and submit all documents requested by the
Financial Aid Office at Rose-Hulman. You can check for those documents needed via online through Banner Self Service Banner Web.
- The Financial Aid Office will send the student an Award Notification Letter that the borrower can use to determine loan period, the type of eligibility and the
amount of eligibility. The borrower needs to determine how much they want to borrow and will have the option to accept the full amount offered or reduce the loan amount via the online Banner Self
Service. Further guidelines will be provided on this process.
- The borrower must complete a Master Promissory Note (MPN) if the MPN is not already on file. This can be done with your four digit FAFSA Pin # at
www.dlenote.ed.gov.
Repayment Information
Loan repayment is deferred as long as the student remains enrolled at least half-time in a degree seeking program.
|
Sample Estimated Monthly Repayment Chart: |
Amount Borrowed |
Payment |
|
Assumes interest rate of 6.8% and all payments made as scheduled on 10-year repayment term (excludes any borrower benefit savings). Borrowers can estimate
monthly payments at
www.finaid.org/calculators/loanpayments.phtml
|
$5,000 |
$58 |
|
$10,000 |
$115 |
|
$20,000 |
$230 |
|
$30,000 |
$345 |
|
$50,000 |
$575 |
|
