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ÌýFederal Stafford Loans are federal loans available to degree-seeking undergraduate students enrolled at least half-time. Half-time at SU is defined as six credit hours for undergraduates. Stafford Loans are can be subsidized and/or unsubsidized. These loans are not credit-based and carry a current origination fee of 1.057%. The origination fee is deducted from the loan amount prior to its disbursal to the university. The Stafford Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program.

ÌýWhen do students pay back Stafford Loans? After students graduate, leave school, or drop below half-time enrollment, they will have six months before they must begin repayment of their loans. This period of time is called a grace period. Students are granted one grace period. Students may have longer than six months if they are on active duty in the military.

ÌýWhat are the types of Stafford Loans? There are two types of Stafford Loans, subsidized and unsubsidized.

A Subsidized Stafford Loan is awarded on the basis of financial need as determined by the FAFSA and SU. For Subsidized Stafford Loans disbursed before July 1, 2012, no interest will accumulate for the student prior to repayment of the loan or during authorized periods of deferment. The federal government will pay the interest during these periods.Ìý For Subsidized Stafford Loans disbursed after July 1, 2012, no interest will accumulate for the student while they are enrolled at least half-time or during authorized periods of deferment.Ìý However, interest will accrue during the grace period prior to repayment.

An Unsubsidized Stafford Loan is not awarded on the basis of financial need. Unlike a subsidized loan, interest will begin to accrue immediately from the time the loan is disbursed until it is paid in full. Students are permitted the option of paying the interest each quarter or deferring interest payments until they enter repayment. If the student allows the interest to accrue while they are in school or during other periods of nonpayment, it will be capitalized – that is, the interest will be added to the principal amount of the loan, and additional interest will be based on that higher amount.

Depending on a student’s financial need, their Stafford Loan could be a combination of both subsidized and unsubsidized.

ÌýWhat is the federal maximum an undergraduate student may borrow each academic year?

Dependent Student	Maximum Direct Stafford Loan AmountÌý
First Year	$5,500 Ìý(Up to $3,500 of this amount may be subsidized)
Sophomore	$6,500 Ìý(Up to $4,500 of this amount may be subsidized)
Junior or Senior	$7,500 Ìý(Up to $5,500 of this amount may be subsidized)

 

Independent Student	Maximum Direct Stafford Loan AmountÌý
First Year	$9,500 Ìý(Up to $3,500 of this amount may be subsidized)*
Sophomore	$10,500 Ìý(Up to $4,500 of this amount may be subsidized)*
Junior or Senior	$12,500 Ìý(Up to $5,500 of this amount may be subsidized)*

Ìý* Students whose parents are denied the Parent PLUS Loan are also able to borrow at this level.

What are the interest rates for Stafford Loans? ÌýThe interest rate for all undergraduate Stafford Loans for the 2022- 2023 year will be fixed at 4.99% for the life of the loan. The fixed interest rate for any loan borrowed for the 2023-2024 academic year will be set by July 1, 2023.

Federal Parent PLUS Loans are federal loans parents can borrow to pay for their dependent student’s educational expenses. Students must be considered a dependent by the FAFSA, be a degree-seeking undergraduate, and be enrolled at least half-time. Eligible parents who can borrow a PLUS Loan include a student’s biological parents, whether they were listed on the FAFSA or not, and stepparents whose income was reported on the FAFSA. Parents must also pass a credit check in order to be approved for this loan.

Parent PLUS Loans currently carry an origination fee of 4.228%. The PLUS Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program. Parents may borrow for each year of their student’s undergraduate career, though subsequent credit checks will be required. Credit checks are valid for up to ninety days.

What is the interest rate for Parent PLUS Loans? The interest rate for the 2022 – 2023 Parent PLUS Loan is fixed at 7.54% for the life of the loan. The fixed interest rate for any loan borrowed for the 2022-2023 academic year will be set by July 1, 2023.

When do parents begin repaying a Parent PLUS Loan? Parents are given two options in repaying the Parent PLUS Loan. Typically, repayment begins within sixty days after the final loan disbursement for the academic year the loan was borrowed. For most parents, this will occur in March of the spring semester. Alternatively, parents can choose instead to defer loan repayment until after their student graduates or drops below half-time enrollment. Interest will still accrue and parents will be given the option of paying or capitalizing the interest. Regardless of the repayment option the parent selects, interest begins to accumulate at the time the first disbursement is made.

 

A Federal Nursing Student Loan is aÌý5%ÌýinterestÌýloan for students who are enrolled at leastÌýhalf-timeÌýin theÌýBachelor’s in Nursing programÌýwho demonstrate exceptional financial need.ÌýPlease contact the Office of Financial Aid for more information.Ìý

When do students pay back Nursing Student Loans?ÌýIf a student is attending school at least half-time, they haveÌýnine monthsÌýafter they graduate, leave school or drop below half-time status before they must begin repayment. Students may have longer than nine months if they are on active duty in the military. At the end of the grace period, students must begin repaying their loans. Students may be allowed up to 10 years to repay.

What is the federal maximum an undergraduate student may borrow each academic year?

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The Perkins loan program has been discontinued. Students receiving this loan must have had a disbursement before October 2017 for the 2017-2018 award year in order to receive a disbursement in the Spring of 2018. Disclosure and Promissory Note information may be found below:

• Federal Perkins Loans Disclosures
• Federal Perkins Loan Promissory Note