Federal Stafford Loans
Federal Stafford Loans
For the Stafford Loan Program, the student borrows funds from The Department of Education. There are two kinds of Stafford Loans-- Subsidized and Unsubsidized Stafford Loans. To be eligible for any Stafford loan the student must complete the Free Application for Federal Student Aid (FAFSA). The student must also be enrolled in the minimum amount of credit hours (6 hours for undergraduates and 5 hours for graduate/professional students). Repayment of the loan starts six months after you stop attending school at least half-time.
Subsidized Stafford Loan.
"Subsidized" means that the federal government pays the interest on this loan while you are enrolled in school at least half-time, during the grace period, or during periods of authorized deferment. You must show financial need to receive this type of loan. Check out the federal loan limits to see how much subsidized you could be eligible for.
Unsubsidized Stafford Loan.
This loan is not based on financial need. "Unsubsidized" means that the federal government does not pay the loan interest at any time--you will be charged interest from the time that the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized--that is, the accrued interest will be added to the principal amount of the loan and the subsequent interest accruals will be based on the higher principal amount. Check out the federal loan limits to see how much subsidized you could be eligible for.
Applying for Stafford Loans
As with other types of financial aid,
a student applies for a loan by completing a FAFSA.
When the Office of Student Financial
Aid receives the FAFSA results and any other supporting
documents requested, an award is prepared in MyView
showing the amount that the student can borrow under
the Stafford Loan programs.
- The student has the opportunity to reduce the amount of aid offered and borrow only what is needed to cover the cost of attendance at UMSL.
- A completed Master Promissory Note and entrance counseling are required before loan funds can be credited to a student's account.
For more information regarding Stafford loans visit the U.S. Department of Education.