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Financial Aid Index >> Loan Information
Federal Stafford Loan
New Unsubsidized Stafford Loan eligibility
for 2008/2009
The University provides borrowers with a list of suggested Stafford Loan lenders. These lenders have established themselves as quality institutions based upon efficiency in loan origination, responsiveness to questions, quality of servicing, and long-term participation and committment to the federal loan program. Although the University provides a list of suggested lenders, borrowers are free to choose any lender participating in the Federal Family Education Loan Program.
The basic provisions for loans offered by the suggested lenders are consistent with all federally insured education loans. In addition, the suggested lenders participate in Notre Dame's electronic application and fund transfer process. This participation provides a superior source of processing and delivery of funds.
The terms of the need based Subsidized Federal Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as subsidized because of the interest subsidy is paid by the federal government to the lender while the student is enrolled in school as well as during the six month grace period following enrollment.
The terms of the non-need based Unsubsidized Federal Stafford Loan Program require that the student borrower repay, with interest, this source of financial assistance. This program is referred to as unsubsidized because the in-school interest is not paid by the federal government to the lender while the student is enrolled in school. Interest on Unsubsidized Stafford Loans begins to accrue after disbursement of the loan funds, however, the student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time repayment begins.
Additional terms of the Subsidized and Unsubsidized Federal Stafford Loan, subject to Federal regulation, include:
- Federal Stafford Interest Rates are currently fixed at 6.8%
- Origination fees for Stafford Loan offered by the University's suggested lenders will be from 0% to 1%
- Repayment and interest begin six months after the student ceases to be enrolled in school on at least a half-time basis and generally extends over a 10 year period
- Annual borrowing limits for undergraduates: $3,500 for freshmen; $4,500 for sophomores; $5,500 for juniors and seniors; independent undergraduate students may be eligible to borrow an additional $4,000 per year during the first two years and $5,000 per year in subsequent years in Unsubsidized Stafford. Undergraduate dependent students are provided the same opportunity if a Federal PLUS Loan is applied for by a parent and denied based on credit;
- Annual borrowing limits for graduate students: $20,500 for graduate/professional students: $8,500 is the annual Subsidized maximum for graduate/professional; annual Unsubsidized maximum for graduate/professional equals $20,500 minus the Subsidized amount for the student.
- $138,500 maximum aggregate for graduate/professional, with no more than $65,500 Subsidized.
- Commercial lending institutions make Federal Stafford Loans to eligible students; the University provides students with a list of suggested lenders and application procedures; students are encouraged to make all their Stafford Loans with the same lender.
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