Unsubsidized Stafford Loan for Graduates
- Fixed interest rate - 6.8%
- No payments while in school at least half-time
The unsubsidized Federal Stafford Loan is not awarded based on financial need. With an unsubsidized Stafford Loan, you will be charged interest from the time the loan is disbursed until it is paid in full. You can pay the interest while you are in school and during your grace and deferment periods or you can allow it to accumulate.
All students, regardless of need, are eligible for the unsubsidized Graduate Stafford Loan. The only requirement is that you must be enrolled at least half time in an eligible program of study.
How much can I borrow with this loan program?
If you are a graduate student, you can borrow up to
- $20,500 each academic year less your subsidized Stafford loan
If you combine subsidized and unsubsidized loans, no more than $8,500 may be in subsidized loans. Check with your financial aid office to determine the amount you are eligible for.
As a graduate or professional student, you can have a total outstanding debt of $138,500 (with no more than $65,500 in subsidized loans). These loan totals also will include any Stafford loans received for undergraduate study.
How can I get this loan?
You first must complete the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA. After the FAFSA is processed, your school will review the results and inform you about your loan eligibility. Next you must complete the Master Promissory Note (request the MPN), which is the promissory note for your loan.
What is the interest rate of this loan?
All loans disbursed after July 1, 2006 have fixed interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. The rate is set based on the auction price of the 91-Day T-Bill at the last Monday auction of May of each calendar year, with rates taking effect on July 1 of that year.
You will not be charged any interest for a subsidized loan before you begin repayment and during the authorized period of deferment. The interest rate on your loan could change each year of repayment but, by law, it will never be more than 8.25 percent.
Are there any special fees I will pay?
Stafford loans that have been disbursed between 7/1/2010 and 6/30/2011 may carry a 1.0% origination fee.
When will I get my money?
In most cases, your loan will be disbursed in two installments and sent directly to the school as determined by your financial aid office. Your loan money will be used to pay your tuition and fees. If loan money remains your school will credit your student account or pay you directly.
Can I cancel the loan?
Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.
What are my repayment options?
The normal repayment for this loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. You may choose one of the following plans:
- The Standard Repayment Plan requires you to pay a fixed amount each month-- at least $50 or the interest that has accrued.
- The Graduated Repayment Plan sets your payments lower at first and then increases them over time. Each of your payments must equal the interest accrued on the loan between scheduled payments.
- The Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.
- The Extended Repayment Plan is for borrowers with loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.