Top Questions about Federal Stafford Loans*
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.
What’s the difference between subsidized and unsubsidized Stafford Loans?
It’s all about financial need. Subsidized Stafford
Loans are awarded to students with demonstrated financial
need.
While students are in school, Uncle Sam pays the interest
on subsidized Stafford Loans, and payment is deferred (delayed)
until after graduation. Once out of school, though, the student
assumes responsibility for the loan, including interest.
With an unsubsidized Stafford Loan, you’re responsible for the interest from the time funds are disbursed. This loan is not based on financial need; in fact, virtually every student is eligible for an unsubsidized Stafford Loan. Although interest starts to accrue immediately, you can delay repayment until after graduation.
How much money can I get with a Stafford Loan?
Dependent students may borrow $2,625 in their first year, $3,500 in their second year, and $5,500 in their third and fourth years of college. Independent students can borrow an additional $4,000 in their first and second years, and an additional $5,000 during their third and fourth years.
What if it isn’t enough?
If Stafford Loans are not enough to pay for school, your parents (if you’re a dependent student) may be able to borrow under the Federal Parent Loan for Undergraduate Students (PLUS) program. With this loan, parents can borrow up to the total cost of education at your school, less any other aid you are awarded.
If federal aid leaves you short, look into Private Loans. NextStudent offers unsecured, credit-based private loans for undergraduate, graduate and continuing education students.
How are loan funds disbursed?
Stafford Loan funds are usually disbursed at the beginning of each semester. Funds are paid directly to your school and the school distributes any excess funds directly in the student's campus account or directly to the student in the form of a check.
What is the interest rate?
The interest rates on Stafford Loans accrues at 6.8%.
How do I apply for a Stafford Loan?
You can apply
online or call a NextStudent Education Finance Advisor
at (800) 299-4639.
Quick Links
» Begin the Application Process
» Types of Stafford Loans
» Loan Amounts
» Rates Fees and Terms
» Top Questions about Stafford Loans