Federal Stafford Loans
There are two types of Federal Stafford Loan, subsidized and unsubsidized. Students must demonstrate financial need to qualify for a subsidized loan. The federal government will pay (subsidize) the interest that accrues on subsidized Stafford loans while the student is enrolled at least half time and during the grace period. Unsubsidized loans are not need-based, and the student is responsible for paying the interest that accrues until the loan is paid in full. The student can opt to pay the interest while in school or allow it to be capitalized (add to the principal of the loan) when he or she goes into repayment.
Students must have a valid FAFSA on file and be enrolled at least half time to be eligible to borrow the Stafford loan. Students will be notified of their Stafford loan eligibility via the award notification. Students who wish to borrow the Stafford loan must complete a Master Promissory Note (MPN) and entrance counseling. Once the MPN is signed, it is valid for 10 years while attending USF. After the MPN and entrance counseling are completed, students will automatically have loan funds they are eligible for disbursed to their student accounts unless they notify the Office of Financial Aid in writing that they wish to decline all or a portion of the loan.
Students are not required to make payments on Stafford Loans while they are enrolled at least half-time (at least 6 credit hours per semester). Students have a six month grace period prior to entering repayment on Federal Stafford loans. The grace period begins when the student graduates, drops below half-time, or ceases to be enrolled.
Loan limits for Federal Subsidized and Unsubsidized Stafford Loans are as follows:
Undergraduate (Dependent Students)
| Completed Credit Hours | Subsidized Maximum | Unsubsidized Maximum | Total Annual Stafford Limit |
|---|---|---|---|
| 1-31 | $3,500 | $2,000 | $5,500 |
| 32-63 | $4,500 | $2,000 | $6,500 |
| 64+ | $5,500 | $2,000 | $7,500 |
"Dependent" students have an undergraduate aggregate lifetime limit of $31,000 (no more than $23,000 of which may be Subsidized) for Stafford loan borrowing.
Undergraduate (Independent Students)
| Completed Credit Hours | Subsidized Maximum | Unsubsidized Maximum | Total Annual Stafford Limit |
|---|---|---|---|
| 1-31 | $3,500 | $6,000 | $9,500 |
| 32-63 | $4,500 | $6,000 | $10,500 |
| 64+ | $5,500 | $7,000 | $12,500 |
"Independent" students have an undergraduate aggregate limit of $57,500 (no more than $23,000 of which may be Subsidized) for Stafford loan borrowing.
Graduate (Independent Students)
All new Stafford loans for graduate students will be unsubsidized beginning with loans disbursed after July 1, 2012. The total annual Stafford loan limit for graduate students is $20,500. Graduate students have an aggregate lifetime limit of $138,500.
Stafford Loan Interest Rates are as follows:
| New Loan Disbursed On or After: | Academic Year | Subsidized |
Unsubsidized |
|---|---|---|---|
| July 1, 2011 | 2011-12 | 3.4% | 6.8% |
| July 1, 2012 | 2012-13 | 6.8% | 6.8% |