Federal Student Loans can be an important piece of the puzzle for many students in their financial aid offers. However, it's important that students fully understand how those loans work.
These 5.5% fixed-rate loans (for loans first disbursed between July 1, 2023, and June 30, 2024) enable students to borrow directly from the Department of Education. Interest is paid by the government on subsidized Stafford loans, which are need-based. Interest accrues on the unsubsidized Stafford loans while the student is in school.
Student loan repayment is deferred until six months after graduation or after a student stops attending college at least half-time. Additional unsubsidized Stafford loans are available to dependent students whose parents are not approved for the Federal PLUS loan. This loan is in addition to the student's Federal Stafford Loan.
All first-time borrowers are required to complete Entrance Counseling and a Master Promissory Note (MPN) at studentaid.gov. School certification is required for disbursement and will take place after the loan application process is complete.
Loan Limits:
- First-year undergraduate, dependent student*: $5,500 (maximum $3,500 subsidized)
- First-year undergraduate, independent student: $9,500 (maximum $3,500 subsidized)
- Second-year undergraduate, dependent student*: $6,500 (maximum $4,500 subsidized)
- Second-year undergraduate, independent student: $10,500 (maximum $4,500 subsidized)
- Third or fourth year undergraduate, dependent student*: $7,500 (maximum $5,500 subsidized)
- Third or fourth year undergraduate, independent student: $12,500 (maximum $5,500 subsidized)
*Except those whose parents are unable to borrow a PLUS loan. For students whose parents cannot, refer to independent student amounts.
Aggregate Limits for Stafford Loans
- $31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized).
- $57,500 for independent undergraduate students.
Finding the best lender for you and your family is important. One option you can use to review and compare private lenders is available through Sparrow. On Sparrow, you can search and compare real, personalized private student loan offers from over 15+ lenders through a simple, three-minute application. Sparrow allows you to easily compare loans and is free. Using Sparrow does not impact your credit score when searching for loan options; your credit score will not be impacted until you choose a loan and begin the application process.
You have the right as a federal loan borrower to cancel all or part of a federal loan within 14 days of disbursement. Disbursement typically happens about 2-3 weeks after classes start each semester. If you wish to cancel or change a loan, then please contact the Office of Financial Aid.
Important Loan Information:
- Code of Conduct
- Federal Student Loan Entrance Counseling
- Federal Student Loan Master Promissory Note
- Learn the Basics and Manage Your Debt
Understanding Student Loans & Repayment
It’s important to understand the repayment process of your student loans. Remember, student loans are real loans, just like a car loan. Make a plan and understand your debt.
Federal Loan Repayment
You’ll make repayments through your loan servicer. Each servicer has its own payment process, so check with your servicer if you aren’t sure how or when to make a payment. You are responsible for staying in touch with your servicer and making your payments.
Learn about Loan Servicers & Find Yours
Repayment Options
There are several different repayment plans to meet your needs, including those based on income and those based on length of time. Think about what repayment type would work best for you.