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Stafford Loans for Students

General Loan Program Requirements
To qualify for this loan program, you must:

• Demonstrate financial need
• In most cases be a regular student enrolled in an eligible program at least half time and working toward a degree or certificate There is an exception to this requirement: If you must take certain course work to qualify for admission into a school's eligible program, you may take out a Federal or Direct Stafford Loan for up to 12 consecutive months while you complete the preparatory course work
• Have a high school diploma or a General Education Development (GED) certificate, pass a test approved by the U.S. Department of Education, meet other standards your state establishes that the Department approves, or complete a high school education in a home school setting that is treated as such under state law
• Be a U.S. citizen or eligible non-citizen.
• Have a valid Social Security Number (unless you're from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau)
• Be registered with the Selective Service if required. (If you're a male-aged 18 through 25, you must be registered.) If you have not registered, you can use the paper or electronic FAFSA to register, you can register at http://www.sss.gov , or you can call 1-847-688-6888. TTY users for the hearing impaired can call 1-847-688-2567
• Maintain satisfactory academic progress once in school
• Certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
• Certify that you will use federal student aid only for educational purposes.

You might be ineligible for federal student aid if you have been convicted of selling or possessing illegal drugs. Call 1-800-4-FED-AID (1-800-433-3243) to see if the drug conviction law applies to you.

Loan Program Description
There are Federal Stafford Loans (made through the Federal Family Education Loan [FFEL] Program) and Direct Stafford Loans (made through the William D. Ford Federal Direct Loan [Direct Loan] program). The main difference between FFEL and Direct Loans is that you receive FFEL funds from private lenders such as banks, credit unions, or other lenders that participate in the FFEL Program. Direct Loan funds come directly from the US Department of Education to you through your school. Often, a school will participate in just one or the other of these programs but sometimes will participate in both. You can receive both FFEL and Direct Stafford Loans, but not both types for the same period of enrollment at the same school. You repay a FFEL Stafford Loan to the private lender that made you the loan or to its designated agency. You repay a Direct Stafford Loan to the U.S. Department of Education.

Stafford Loans have variable interest rates and are for both undergraduate and graduate students. The loans you receive will be either subsidized or unsubsidized.

A subsidized loan is awarded on the basis of financial need, as determined by the information you submit on your Free Application for Federal Student Aid. You won't be charged any interest before you begin repayment or during deferment periods. The federal government subsidizes the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. Also, if you need to borrow more than your subsidized loan limit, you may do so and receive an unsubsidized loan. For unsubsidized loans, you'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school or during other periods of nonpayment, it will be capitalized. This means the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.

Loan Terms
The loan terms for a Stafford Student Loan are as follows:

Maximum Loan Amount: $2,625 to $8,500 (depending on your grade level, your status as a dependent or independent student, and your status as an undergraduate or a graduate student)
Interest Rate: variable (adjusted annually on July 1, does not exceed 8.25%) You will be notified of any interest rate changes during the life of the loan.
Maximum Loan Length: 30 years, depending on amount borrowed and repayment plan chosen.
Frequency of Payments: monthly, might be less frequent. After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you begin repayment.
Prepayment penalties: none
Fees: You'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. Because of this deduction, you'll receive slightly less than the amount you're borrowing.

Loan Application Process
To apply for this and any other federal education loans, fill out the Free Application for Federal Student Aid (FAFSA). We encourage you to apply online, using FAFSA on the Web. This site will also tell you what information you need to fill out the FAFSA accurately. Before you apply, you should request a PIN (an electronic access code number that serves as your identifier). A PIN allows you (and your parents, if they have a PIN and you're a dependent student) to "sign" your FAFSA electronically before it's submitted, which means the student aid process can be completed totally online. FAFSA on the Web filers who are new applicants can request a PIN at http://www.pin.ed.gov .

If you don't request a PIN, you can always print out, sign, and mail in a signature page within 15 days of submitting your FAFSA, but the application process will take longer.

If you don't have Internet access, you can get a paper FAFSA from your high school, local library, postsecondary school, or by calling the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users for the hearing impaired can call 1-847-688-2567.

If you applied for federal student aid for the previous school year, you can probably file a Renewal FAFSA for the next year. Using a Renewal FAFSA means you'll have fewer questions to answer than if you applied with a new application, because most of the Renewal FAFSA will be filled in with information you provided on your previous application. You'll only have to update any information that has changed since and fill in a few new answers.


If you currently have a Direct Stafford Loan and you have questions, you should contact the Direct Loan Servicing Center, or go to www.dl.ed.gov. If you currently have a FFEL Stafford Loan, you should contact the lender or agency holding the loan.
800-848-0979

General information about the federal student aid programs, assistance in completing the FAFSA, and information about FAFSA on the Web are available through the Federal Student Aid Information Center.
800-433-3243

TTY users for the hearing impaired can call:
800-730-8913

Callers in locations without access to 800 numbers may call 319-337-5665 (this is not a toll free number)

To report fraud, waste, or abuse involving federal student aid funds, call 1-800-MIS-USED.
800-647-8733

Loan Managing Agency
U.S. Department of Education