Federal Stafford Loans
Federal Stafford loans are the most commonly borrowed student loans. UTSA participates in the Federal Family Educational Loan Program (FFELP) and works with many lenders to provide these loans to students. Loans are a form of financial aid that must be repaid, with interest. Federal Stafford loans are long-term loans with no payment required while the student is in school or during their six-month grace period. Many lenders offer repayment incentives such as a reduction in interest and fees for timely repayment.
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Applying for a Stafford Loan Using TG Loans By Web™
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2008-2009 Maximum Annual Loan Limits for Federal Stafford Loans
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Default Management Information
Types of Stafford Loans
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Subsidized Stafford Loan-
- Are loans based on need as established by the school's cost of attendance. The U.S. Department of Education pays the interest while you are in school at least half time, for the first six months (grace period) after you leave school, and during a period of deferment (meaning a postponement of loan payments). The amount of your subsidized loan cannot exceed your financial need.
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Unsubsidized Stafford Loan-
- Are loans that are non-need based and can assist students in meeting educational costs. The student is responsible for the interest payments from the time the loan is disbursed until it is paid in full. You have the option to pay the interest as you continue to attend school or let the interest accumulate and let it be added to the principal amount of your loan. This means that the interest will be “capitalized” and the total amount you repay will be higher than if you paid the interest all along.
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Due to a recent change in federal law related to the annual Stafford loan limits, undergraduate students enrolled as regular students in eligible undergraduate programs may now be entitled up to an additional $2,000 in unsubsidized Stafford loan money.
You will need to complete the 2008-2009 Federal Stafford Loan Request Form for Additional Unsubsidized Funds for Undergraduates Only in order to be awarded the additional funds. This form is for the specific purpose of requesting certification of such eligible funds up to the maximum amount of $2,000.
Interest Rates
The current Federal Stafford Loan interest rate is 6.0 percent.
For Stafford Loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st) but will not exceed 8.25 percent. (You'll be notified any time the variable rate changes.)