Stafford Loans

The Stafford Loan offers you money for school with competitive interest rates that help you keep your payment rates low after you graduate. Your educational institution participates in one of two Stafford Loan programs.

Some schools participate in the Federal Family Education Loan Program (FFELP), while others participate in the William D. Ford Federal Direct Loan Program. The government acts as the lender for Federal Direct Loans, and a lending institution, such as your family bank or credit union, acts as the lender for the FFELP Loans.

Stafford Loan Financial Details
If you are a dependent student, you can qualify for a Stafford Loan of up to $2,625 during your first year of school, $3,500 your second year, and $5,500 per year after that. If you are an independent student, you may qualify for a larger loan amount, ranging from $6,625 to $18,500 depending on your year of study. 

The Stafford Loan interest rate is fixed at a competitive market rate at the time your loan is disbursed, and can never exceed 8.25%. Some FFELP program lenders may offer discounted interest rates as a reward for participating in electronic payment plans or consistently making payments on time.

As a part-time students, you are eligible for Stafford Loans, but you must maintain at least half-time student status through your educational term in order to keep your loan.

Types of Stafford Loans
The Federal government created the Stafford Loan in order to help you supplement the cost of your education. With the Stafford Loan, it's possible to borrow a maximum of $18,500, depending on your financial need. It may be possible for you to qualify for a subsidized Stafford Loan if you meet your school's guidelines for financial need. The Federal government pays the interest on a subsidized loan while you are in school. You must make payments on the interest of your unsubsidized Stafford Loan while you're in school, but do not have to repay on the principle until after you leave school. If you qualify, it's possible to combine subsidized and unsubsidized Stafford Loans to help you cover your school expenses.

Remember that if your enrollment status drops below half time, you will have to begin repaying your Stafford Loan after the stated grace period.

Begin the Application Process
It's possible to qualify for a Stafford Loan without a credit check if you are a U.S. citizen or an eligible non-citizen enrolled at least half time in an accredited educational program. Complete the FAFSA online to determine your eligibility for the Stafford Loan.