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What is a stafford sub loan

what is a stafford sub loan

Stafford Loans (SUBSIDIZED and UNSUBSIDIZED) General Information

The subsidized Stafford is a need-based loan program. For a qualified student, the Federal Government pays the interest until the student ceases enrollment as, at least, a halftime student.

The amount a student can borrow will vary, depending upon the student's demonstrated financial need.


Students may borrow through the unsubsidized loan program regardless of income. The unsubsidized loan's terms and conditions are the same as the federal Stafford subsidized loan such as loan limits, deferments and interest rates. Students are charged with interest during in school and grace periods.

Please contact the Financial Aid office if you have any additional questions.


Loan Interest Rates

Note: Graduate students are only eligible to receive unsubsidized loans.

Under the law, the index rate is determined each year as the “high yield of the 10-year Treasury note” auctioned at the final auction held prior to the June 1 preceding the July 1 of the year for which the rate will be effective, plus a statutorily defined “add-on”. As noted, the add-on differs depending on the type of loan and the student’s grade level. Each loan type is also subject to a maximum interest rate (or cap).The interest rate for a loan, once established, applies for the life of the loan – that is, the loan is a fixed-rate loan.

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