Federal Stafford Loan Rates and Terms*
Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications. However, you may be able to apply for these federal student loans from one of our trusted partners. Click here for more information.
Stafford Loan interest rates are variable and are adjusted July 1 of each year, based on the last 91-Day T-Bill rate in May.
- Interest accrues at a rate based on
that 91-day T-Bill + 2.3%. The rate until June 2007 is
6.8%.
Terms
The Stafford Loan has a 3% government origination fee and a 1% guarantee fee (normally waived). The money is taken out of the proceeds of the loan, so there is no initial cost to the student.
- Subsidized: The government will pay the interest loan while you are in school and during grace and deferment periods. Students must demonstrate financial need to be eligible for a subsidized Stafford Loan.
- Unsubsidized: Students are responsible
for all interest, although payment is deferred until after
graduation. All students, regardless of need, are eligible
for the unsubsidized Stafford Loan.
Repayment
Repayment normally begins six months after the student leaves college, with a minimum monthly payment of $50 (actual payment depends on the amount borrowed). There is no prepayment penalty and the repayment periods are initially set at 10 years.
The student may choose alternate repayment options such as Deferment, Forbearance, and Income-sensitive repayment to reduce or postpone repayment. Some sort of hardship usually has to occur for such options to be granted.
All Stafford debt is forgiven in the event
of death or permanent disability of the borrower.
Quick Links
» Begin the Application Process
» Types of Stafford Loans
» Loan Amounts
» Rates Fees and Terms
» Top Questions about Stafford Loans