Stafford loans are either subsidized or unsubsidized. A subsidized loan is need based, and is interest free while the student is enrolled at least half time. An unsubsidized loan is not need based, and so it will accrue interest from the time the loan is disbursed until it’s paid in full. If you allow the interest to accrue while you’re in school or during other periods of nonpayment, it will be capitalized – that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. The unsubsidized interest rate is a fixed rate of 6.8%. The subsidized rates are fixed as follows:
|
First disbursement of a loan: |
Interest rate on the unpaid
balance |
|
Made on or after |
And made before |
|
July 1, 2008 |
July 1, 2009 |
6.0 percent |
|
July 1, 2009 |
July 1, 2010 |
5.6 percent |
|
July 1, 2010 |
July 1, 2011 |
4.5 percent |
|
July 1, 2011 |
July 1, 2012 |
3.4 percent |
You will need to complete a Master Promissory Note (MPN) with the lender of your choice and complete entrance counseling before the loan will disburse. You will also need to complete exit counseling before ceasing enrollment at CSU – Pueblo. You will be notified of the interest rate changes throughout the life of your loans. You may pay a fee of up to 4% of the loan, deducted proportionately from each loan disbursement. Repayment on both loans begins six months after the student graduates, leaves school, or drops below half time enrollment. Loan funds are sent directly to the school at the beginning of each semester.
Stafford Loans are Federal Family Education Loan (FFEL) Program loans, and borrowers may choose any lender. Click here for more information about lenders.
Annual Loan Limits for Stafford Loans
| |
Dependent
Undergraduate Student |
Independent
Undergraduate Student |
| Freshman |
$5,500 – Only $3,500 may be subsidized |
$9,500 – Only $3,500 may be subsidized |
| Sophmore |
$6,500 – Only $4,500 may be subsidized |
$10,500 – Only $4,500 may be subsidized |
| Junior and Senior |
$7,500 – Only $5,500 may be subsidized |
$12,500 – Only $5,500 may be subsidized |
| Maximum Aggregate Total Debt Allowed |
$31,000 – Only $23,000 may be subsidized |
$57,500 – Only $23,000 may be subsidized | *Graduate students may borrow up to $20,500 each academic year. Only $8,500 of this amount may be subsidized.
|