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Federal Stafford Loans
Federal Stafford Loans are used by many students to help finance their education. A FAFSA must be filed in order to be eligible. A subsidized loan will not accrue interest while you are in school. The verified Expected Family Contribution (EFC) on the FAFSA and all other sources of aid determine eligibility for the subsidy. Students who do not qualify for the subsidized Stafford Loan may still borrow under the program, though the loan will be unsubsidized. Instructions to apply for the loan are found below.
Borrowing Limits
The annual loan amounts for dependent undergraduate students are demonstrated below. Students must maintain satisfactory academic progress (SAP Policy).
| Dependent Student Federal Stafford Loan Limits | Base Eligibility | Additional Unsubsidized Eligibility | Total Stafford Loan Eligibility | Additional Unsubsidized Eligibility* |
| Freshman | $3,500 | $2,000 | $5,500 | $4,000 |
| Sophomore | $4,500 | $2,000 | $6,500 | $4,000 |
| Junior & Senior | $5,500 | $2,000 | $7,500 | $5,000 |
*Independent students or a dependent student whose parent PLUS loan has been denied may apply for the additional unsubsidized Stafford funds.
Interest Rates
Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during the specified period are as follows:
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First disbursement of a loan: | Interest rate on the unpaid balance |
| Made on or after | And made before |
| July 1, 2008 | July 1, 2009 | 6.00% |
| July 1, 2009 | July 1, 2010 | 5.60% |
| July 1, 2010 | July 1, 2011 | 4.50% |
| July 1, 2011 | July 1, 2012 | 3.40% |
*This change does not affect any prior loans made to borrowers
How to Apply for a Stafford Loan – FAFSA must be completed
***First-Time Borrowers***
- Review the suggested lender list on the ELMSelect website
- Complete Entrance Counseling with AES
- Complete and sign a Master Promissory Note (MPN) with your lender
***Prior Borrowers***
- Log-on your Banner Self-Serve account and accept the Stafford Loan funds that have been offered to you
If you are only applying for loan assistance please notify us: financialaidloans@lafayette.edu.
Disbursement
Loan proceeds are sent directly to Lafayette and are typically applied to the student's account in two disbursements, one each semester, by either Electronic Funds Transfer (EFT) or paper check. If a credit balance results after applying the loan to the student's account, the excess can be refunded to the student within two weeks of the disbursement.
Repayment
Repayment of the loan begins six months after the student leaves the College, graduates, or ceases to be enrolled at least half-time. The six-month period between graduation and repayment is considered the grace period. To help calculate your projected monthly repayment at various interest rates, visit www.youcandealwithit.com, where calculators are available for your convenience.
Feel free to contact us at financialaidloans@lafayette.edu or (610) 330-5057.
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