There are two types of Stafford Loans.
- Subsidized Stafford
- Need-based
- Government pays the interest while you are in school (half-time or greater), in an approved deferment or in grace period.
- Must be enrolled at least half-time.
- 6.8% fixed interest rate for graduate students.
- Interest rate is variable and based on the 91-Day T-Bill; adjusted every July 1st and not to exceed 8.25% for loans disbursed before June 30, 2006.
- Repayment begins 6 months after you cease to be enrolled at least half-time.
- Unsubsidized Stafford
- Non-need based.
- Interest begins to accrue when the loan is disbursed.
- 6.8% fixed interest rate for graduate students.
- Interest rate is variable and based on the 91-Day T-Bill; adjusted every July 1st and not to exceed 8.25% for loans disbursed before June 30, 2006.
- Repayment begins 6 months after you cease to be enrolled at least half-time.
Stafford Loan Limits
| Annual Loan Limits for Graduate/Professional Students | ||||
|---|---|---|---|---|
|
Loans for loan periods beginning before July 1, 2012 |
Loans for loan periods beginning on or after July 1, 2012 |
|||
|
Subsidized Loan Maximum |
Unsubsidized Loan Maximum |
Subsidized Loan Maximum |
Unsubsidized Loan Maximum |
|
|
All Graduate and Professional Students |
$8,500 |
$20,500, less any subsidized amount received |
$0 |
$20,500 |
|
Certain Health Professions Students |
$8,500 |
$47,167, less any subsidized amount received |
$0 |
$47,167* |
*Based on the length of the enrollment period.
Interest rate is 6.8% fixed. Need analysis (FAFSA) is required.
The aggregate loan limit for graduate and professional students remains unchanged at $138,500 ($224,000 for DO, DPM and MPH), not more than $65,500 of which may be in subsidized loans.
The annual limits are maximums per year based on eligibility and cost of attendance. Aggregate limits are lifetime limits. If you have considerable Stafford debt prior to entering DMU you may exhaust your Stafford eligibility.
To check your prior Stafford loans you can:
- Contact your lender.
- Check your Student Aid Report (SAR); the results from the FAFSA.
- Access the National Student Loan Database (NSLDS) with your Federal PIN number at www.NSLDS.ed.gov.
Federal Grad PLUS loan
- Graduate students can borrow on their own behalf (no parental information required).
- 7.9% fixed interest rate. Up to 4% fee at each disbursement.
- Loan limit is DMU cost of attendance budget minus all other financial aid (Staffords, scholarships, etc.).
- Student will be offered their full Stafford eligibility before awarding Grad Plus.
- Must not have adverse credit history.
- Repayment begins after the loan funds are fully disbursed.
- In-school deferment is available to postpone payments for borrowers who are enrolled at least half-time.
- You may request a 6 month grace period when you ceased to be enrolled at least half-time.
- View the Federal Direct Student Loan Terms Chart
| Effects of accrued interest and capitalization: | |
|---|---|
| Unsubsidized Loan borrowed over a 1-year period, plus 6 month grace | $10,000 |
| Interest accrued and capitalized at repayment (6.8%) | $1,064 |
| New balance when repayment begins | $11,064 |
Borrower has the option to make Unsubsidized Stafford and/or GradPlus loan interest payments while in school.
To continue, please answer the following questions
- Prior Stafford borrowing could exhaust my Stafford Loan eligibility prior to completing the program.
- True
- False
- Subsidized and Unsubsidized Staffords have the same interest rate.
- True
- False
